MTN Nigeria Communications Plc saw its share price fall on Friday for the first time since it got listed on the Nigerian Stock Exchange.
The telecommunications company emerged as 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. The share price gained N59 in six days to close at N149 on Thursday.
The nation’s stock market, 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.
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.
A listing by introduction provides existing shareholders with the opportunity to sell their shares to the public.
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.
After its listing on Thursday, the share price of the telco surged by the daily limit of 10 per cent for five straight days as demand for its shares far outpaced supply.
MTN Nigeria said on Monday that its listing by way of introduction on the NSE created a new telecoms and technology asset segment for the NSE.
It stated that its listing meant that existing shares of MTN Group (78.8 per cent), Nigerian investors (19.4 per cent) and other investors (1.8 per cent) would be listed, adding that shareholders were free to trade their shares on the NSE if they so wish.
Analysts had said on Thursday that there might be some profit-taking activity in subsequent sessions after the stock market extended its gaining streak to six days.
Analysts at Afrinvest Securities Limited said, “Following the recent positive run, we do not rule out the possibility of some profit taking activity in the subsequent session.”
They said the year-to-date return, at 0.1 per cent, inched into the positive region on Thursday for the first time since March.