Business

MTN ends 6-day winning streak on stock market, sheds 6% of share price on Friday

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MTN Nigeria Communications Plc suffered its first loss since on Friday since it got listed on the Nigerian Stock Exchange (NSE), after gaining N59 in six days to close at N149 on Thursday.

The company was the fourth biggest loser at the end of trading on the NSE, as its share price declined by 6.04 per cent (N9) to N140.

Also, the NSE,  which had been rising since MTN’s listing, ended its six-day rally on Friday as the NSE All Share Index dropped by 1.89 per cent to close at 30,881.29 basis points.

The market capitalisation of equities listed on the NSE dipped by N263bn to N13.601tn on Friday as 17 firms, led by Neimeth International Pharmaceuticals Plc, recorded price depreciation, as against 21 gainers.

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Recall that the NSE admitted MTN Nigeria on its Premium Board at N90 per share on Thursday last week after the company’s listing by way of introduction.

MTN Nigeria listed 20.4 billion shares at N90 per share, which translates to a market capitalisation of N1.8tn, making it the second largest company listed on the NSE after Dangote Cement Plc, as it accounted for 17.3 per cent of total market capitalisation on the day of listing.

It’s share price surged by the daily limit of 10 per cent for five straight days as demand for its shares far outpaced supply.

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