Airtel Africa Sheds 10% of its Market Valuation
Now, investors can now buy shares of Airtel Africa cheaper having lost N380 per unit so far from the peak price of N2000. The Nigerian Exchange has been spilling blood across counters and Airtel Africa Plc has been caught in the fire ahead of third-quarter earnings releases.
The telecom giant is now valued at N6.088 trillion after it shed N180 on each 3.758 billion outstanding shares. For the market, the company’s downward share price movement is massive, a market mover which accounts for almost 20% of the entire market capitalisation.
Generally, there is an ongoing rebalancing by retail and institutional investors, and even closely held companies’ stocks have been affected. Telecom company shares have been trading in the cold dark side, and most banking stocks have seen their worst market performance.
Now, stock investors have shifted to selling their telecom stock. Whether it is a correction or mere profit taking, the stock market today priced Airtel Africa shares downward by 10%- being the maximum allowable daily losses in the Nigerian Bourse.
The telecom company still maintains its position as the most valuable listed company in the local bourse after today’s selloffs that cut off N655 billion from equity market capitalisation. READ:Airtel Africa Acquires DRC Spectrum for $42m
Airtel Africa share has seen less volatility in recent times after its share buyback programme that reduce Nigerian minority interest.
In the local bourse, Airtel Africa led the losers’ chart after it shed 100 per cent to close at N1,620.00 from N1,800. It is noteworthy to say that Airtel Africa’s share price had peaked at N2000, according to data from the local bourse.
The telecom company’s earnings has been projected to rise in the third quarter driven by data revenue and voice amidst rising market penetration via large size capital investment builds.
Just last week, Airtel Africa announced recently that its Zambia subsidiary, Airtel Networks Zambia has purchased 60 MHz of additional spectrum spread across the 800 MHz and 2600 MHz bands from the Zambia Information and Communications Technology Authority, for a gross consideration of $29m, payable in local currency.
This additional spectrum will support our network expansion in the market for both mobile data and fixed wireless home broadband capability, including for 5G rollout, providing significant capacity to accommodate our continued strong data growth in the country.
Zambia is one of our largest markets by revenue. This investment reflects our continued confidence in the opportunity inherent in the Zambian market, supporting the local communities and economies through furthering digital inclusion and connectivity.
On Tuesday, Airtel Africa lost yet another 10% of its market valuation, shedding N162 on each outstanding share while some analysts and stockbrokers are hoping for an additional price down ahead of the third-quarter earnings season report submission.
# Airtel Africa Sheds 10% of its Market Valuation#
