MTN Rises to Become Second Most Valuable Brand in Nigerian Bourse
Briefly this week, telecommunication company giant MTN Nigeria Plc beat Dangote Cement as the second most valuable brand on the Nigerian Exchange, according to trading data tracked by MarketForces Africa.
However, Dangote Cement regained its position. There is a thin margin in the two companies’ valuation at the last trading session in the just concluded week.
Traded at N230. 10 per 20.234 billion shares outstanding, MTN Nigeria’s total valuation jerked up to N4.684 trillion after investors show interest in the telecom stocks. Meanwhile, investors value Airtel Africa at N6.510 trillion as the stock remains flattish.
Now, the leading telecom giants Airtel Africa and MTN Nigeria Plc account for about N11.20 trillion of the Nigerian stock market capitalisation, as value hunters spot upside potentials.
Elsewhere, Dangote Cement company which had crossed N5 trillion in terms of stock market valuation has shed enough weight after equities investors dumped shares. The cement company’s earnings performance has been growing consistently with solid dividend payout except for perceived key man risk.
The Nigerian market participants see the cement company’s share as high risk due to shareholding concentration, 85% of its 17.040 billion shares are owned by Dangote Cement Industries Limited.
The high leveraged top player in the cement oligarchs family is in the market to raise an additional N150 billion to finance operations from its N300 billion commercial paper programme.
MTNN had peaked at N234.2 per share in the local bourse in the last 7-day trading sessions, according to data from the Nigerian bourse. Meanwhile, Dangote had settled low at N4.248 trillion on Monday, when the company share price dropped to N249.30 amidst selloffs.
A day after, the share rose to N270 before it finally settled at N275 on Friday. READ: TikTok Named World’s Fastest-Growing Brand, Africa Outside Rank
At the end of the week, Dangote cement Plc’s valuation tracked lower at N4.686 trillion, falling two-notch down the line as the most valuable brand in the local bourse after the share buy back programme.
MTN Nigeria hit N4.767 trillion before the share price was priced down to N230.10 on Friday. Airtel Africa’s valuation printed at N6.557 trillion midweek. #MTN Rises to Become Second Most Valuable Brand in Nigerian Bourse
