MTN Listing: Equities rally N2.68tr in 4 days

Nigerian equities recorded their highest daily gain in 2019 yesterday as the positive momentum that greeted the listing of MTN Nigeria Communications Plc drove the market to its fourth consecutive positive closing.

Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average gain of 2.88 per cent yesterday, equivalent to net capital gain of N372.1 billion. With this, total gain by the market since the listing of MTN Nigeria jumped to N2.68 trillion, including initial listing value of N1.83 trillion. MTN Nigeria, which was listed by way of introduction at N90 per share last Thursday, has been rising by the maximum allowable price change of 10 per cent since Thursday.

Aggregate market value of all quoted equities on the NSE, which had opened last Thursday at N10.627 trillion, closed yesterday at N13.310 trillion. The All Share Index (ASI) rallied back to the 30,000 points to close yesterday at 30,218.14 points as against 28,286.08 points recorded as opening index last Thursday. The sustained rally has moderated the average year-to-date return to -3.86 per cent.

“Following sustained interest in MTN Nigeria, we expect the bullish run in the equities market to continue,” Afrinvest Securities stated.

MTN Nigeria recorded the highest gain of N11.95 to close at N131.70 per share. The current market value increased MTN Nigeria’s market value to N2.68 trillion, N850 billion net capital gains on the telco’s entry value of N1.83 trillion on Thursday. Dangote Cement followed with a gain of N7 to close at N185. Forte Oil rose by N2.25 to close at N27.80 while Guaranty Trust Bank chalked up 90 kobo to close at N31.30 per share.

The momentum of activities improved by 56.5 per cent to 335.60 million shares valued at N17.2 billion in 4,453 deals. MTN Nigeria was also the most active stock with a turnover of 110.7 million shares worth N14.58 billion.

“We expect the rally in the equities market to persist in the short term, following sustained interest in MTN Nigeria shares,” Cordros Securities stated.