MTN Triggers Santa Rally in Nigerian Stock Market
Nigeria’s major stock market saw a further rally of 0.82% in the Tuesday trading session.
Investors booked additional gains of roughly N504 billion as the Nigerian Exchange Limited (NGX) continued its Santa Claus rally. The market capitalization of the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and stocks increased to 102,186.03 index points and N61.944 trillion.
MTN Nigeria, the country’s biggest mobile network operator with 80.38 million subscribers, saw an N388 billion spike in its market value following reports that the Nigerian Communications Commission (NCC) is considering raising telecom rates. MTN Nigeria ended Friday’s trading session with a market value of N3.69 trillion.
Nigerian telecom industry has had to contend with volatile foreign exchange rates and a challenging business climate. Both telcos have reported losses due to high FX liabilities. The combined FX losses for MTN and Airtel Africa in 2023 came to N1.29 trillion.
The market breadth index was positive with 30 gainers and 20 losers. The NGX gainers were TANTALIZER, CONOIL PLC (+10%), while the top losers were DAARCOMM PLC (-8.47%). Other top gainers include CUSTODIAN PLC(+9.92%) while other bottom losers include: CAVERTON (-8.16%)
Total volume increased by +41% to 490m units worth N7.05 billion FCMB PLC has the highest volume at 77 million traded while ARADEL had the highest value worth N753 million. The local bourse closed positively due to buying interest in the Insurance, Oil & Gas, and, Consumer goods sectors.
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