Investors are Dumping MTN Nigeria over Earnings Disaster
Equities investors are dumping MTN Nigeria Plc shares following huge losses sustained in 2023. The company posted more than N137 billion lost after tax in 2023 following huge FX losses due to its foreign currency liabilities. This plunged the company shareholders’ fund to negative.
Noting the development, the market witnessed ‘get-me-out’ reactions following the unimpressive performance that broke the telecom company’s balance sheet to pieces. Its earnings performance submerged due to macroeconomic headwinds which came stronger about management efforts.
Inflation and interest rate supported the telecom giant’s damaged earnings in addition to regulator’s margin dilutve demand to block customers who has not linked their biometric verification, national identification numbers to their SIMs cards.
Weak outlook spurred raft of MTN Nigeria’s share selloffs, though management remained positive about the future based on statement released today. In its midday report, Alpha Morgan Capital Limited told investors that presently, the NGX All Share Index is exhibiting a negative movement, indicating a decline of 0.11%.
This bearish trading stance is a result of sell-side pressure in key equities such as MTNN -9.96%, NASCON -7.22%, and other listed stocks. During the intraday session, MTN Nigeria has already lost about 10% – which is the maximum allowable daily loss accepted in the local bourse.
Otherwise, the telecom company would have seen a riotous development around its market valuation which has come under pressure recently before an earnings announcement. #Investors are Dumping MTN Nigeria over Earnings Disaster Naira Suffers Big, CBN Goes Ballistic Against FX Whales
