MTN Nigeria share slumped last week as sell pressure continued among shareholders engaging in profit-taking. Analysis showed that the capital market has been pricing the telecom giant stock low.
In five days of trading, MTN Nigeria stock value depreciated by 12.10 percent, ending the week at N167 per share, its lowest in four months, against the N190 it opened trading with last week.
Last time the telco’s stock sold at this low rate was in the third quarter of this year. On August 2, 2021, MTN Nigeria had closed trading at N168 per share, from the day’s opening of N165.
The decline is fueled by the parent company, MTN Group’s, decision to sell off 575 million shares at a reduced rate of N169, against the going price of N190 on November 30.
This triggered profit-taking, as shareholders moved to recoup their gains off the bourse before the bonanza offer dragged down the value of their investment.
MTN Group’s offer was expected to last for two weeks, and the share price of MTN Nigeria was N0.2kobo below the N169 its parent company was offering the stock.
The 12.10 percent decline wiped N468.15 billion from shareholders’ investment worth, which was now valued at N3.39 trillion, against N3.86 trillion of last week Monday.