MTN Nigeria Slides Amidst Negotiated Block Trade
Telecommunication Company MTN Nigeria Plc’s market value fell below N9 trillion in the equity market after investors consummated huge negotiated block transactions.
Trading data from the Nigerian Exchange (NGX) showed that the telecom company’s share price fell by 4.8% as 5.252 million units valued at N2.127 billion were executed in the market, including off-market transactions.
A transaction involving 17 million shares was executed at ₦414.10 per share, Anchoria Securities Limited told investors in a note, amounting to a trade value of ₦425 million.
The huge trading volume executed reduced the market value of MTN Nigeria Plc to N8.694 trillion, trading at more than 16.34% discount to its highest valuation on record in the last 52 weeks.
Equity analysts are positive about MTN Nigeria’s earnings outlook, but there is not a consensus about when the group will start paying dividends. While earnings continue to climb, its shareholders’ fund remains tight.
The parent also indicated a plan to sell more shares to Nigerian shareholders in the future as earnings began to pick up. Importantly, bargain hunting in the telecom stock has reduced after Q2 earnings rush.
The market anticipates third quarter earnings performance to drive a fresh rally; until then, MTN Nigeria Plc’s market value has continued to retreat—creating upside potential for a new entrant ahead of the next rally. First Holdco Sees Soft Rally Amidst Huge Block Trade
