MTN Nigeria Slumps by 6% in Huge Cross Deal Volume
Driven by a huge off-market transaction volume, MTN Nigeria Plc’s stock market value slumped by more than 6% in the equities segment of the Nigerian Exchange (NGX) platform. The telco stock price fell in spite of the fact that huge volumes were traded in blocks.
Stockbrokers reported that Ticker: MTNN led the value log in the local bourse with N20.93 billion worth of shares closed in cross deals. This means that an accredited stockbroker paired buy and sell orders from customers outside the Nigerian Exchange trading platform.
The stock accounted for 59% of the value of all stocks traded in the equities market. Trading details from the Nigerian bourse showed that the telecommunication company’s stock market price fell by 6.07% to close the day at N240, losing N15.5 on each of its 20.995 billion outstanding shares.
The telecom company’s share price fell as the market recorded that a total of 86.850 million units valued at N20.931 billion exchanged hands. The price decline dragged MTN Nigeria’s market value down to N5.038 trillion, trading at a significant discount to its highest value in the last 52 weeks on NGX.
“The fact that the telco’s huge volume emerged from a cross-trading deal limits its price decline as it would have been if it were an open market transaction”, analysts said in a chat with MarketForces Africa. #MTN Nigeria Slumps by 6% in Huge Cross Deal Volume
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