FPIs Sell MTNN, Buy Airtel to Aid Fund Repatriation
Amidst Nigeria’s foreign currency (forex) crisis, foreign portfolio investors (FPIs) pitched their tents with Airtel Africa amidst a reduction in transactions while selloffs hit MTN Nigeria Plc shares.
MTN Nigeria was faced with selloffs that plunged its market price down to N250 on Friday, according to data from the Nigerian Exchange (NGX). Generally, the local bourse has given up gains as investors’ sentiment started to wane.
Last week, Airtel Africa Plc gained 8.53% due to an increase in buying momentum in the telecom company shares. Foreign interests were active, buying more while offloading its immediate rivals’ shares, analysts suggest in an equity note.
In its update, CardinalStone alluded to foreign investors’ rotation out of the stock into AIRTELAFRI taking advantage of its dual listing feature to drive repatriation of funds.
Last week, the market rebounded, ending three consecutive weekly declines, with the NGX All-Share Index gaining 0.11% with CardinalStone model equity portfolio outperforming the benchmark by 15bps
The investment firm said the gain in the banking names was driven by investors’ positioning ahead of ACCESSCORP’s dividend qualification date on Friday and rumours of a potential acquisition of Premium Pensions by GTCO.
Market intelligence suggested that the continued selloffs in MTNN were occasioned by foreign investors’ rotation out of the stock into AIRTELAFRI taking advantage of its dual listing feature to drive repatriation of funds. Fidelity Bank Loses 25% of Its Market Value
