Economy

Airtel Africa re-ignites bearish trend, drops by 9.99%, second day after listing

Airtel Africa re-ignites bearish trend, drops by 9.99%, second day after listing
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Written by Maritime First

…As Osinbajo hosts London Stock Exchange Africa Advisory Group***

Airtel Africa shares on Wednesday exacerbated the bearish trend at the Nigerian Stock Exchange (NSE) as it dropped by 9.99 per cent, only one day after listing, forcing the market indices to close on negative region.

Specifically, the stock which opened trading at N399.30 shed N39.90 or 9.99 per cent to close at N359.40 per share.

Airtel Africa on July 9 listed 3,758,151,504 shares ordinary shares at N363 per share. It appreciated by N36.30 per share or 10 per cent at the first trading day to close at N399. 30 per share.

Forte Oil trailed with a loss of N2.30 to close at N20.70, while Conoil was down by N2.20 to close at N19.95 per share.

Dangote Cement shed N1.20 to close at N173.50, while NAHCO declined by 29k to close at N2.66 per share.

Also read:  NSE market capitalization rises by N1.38trn on Airtel Africa listing

Consequently, the All-Share Index lost 61.42 points or 0.21 per cent to close at 29,256.60 compared with 29,318.02 achieved on Tuesday.

Also, the market capitalisation, which opened at N14.288 trillion shed N30 billion or 0.21 per cent to close at N14.258 trillion.

Conversely, MTN Nigeria Communications led gainers’ table, appreciating by N3.95 to close at N133 per share.

Guaranty Trust Bank followed with a gain of N1.05 to close at N29.05, while Unilever improved by N1 to close at N33 per share.

Union Bank of Nigeria gained 65k to close at N7.50, while Ecobank Transnational increased by 40k to close at N9.90 per share.

Zenith Bank was the toast of investors during the day, exchanging 45.13 million shares valued at N866.54 million.

Morison Industries came second on the activity chart with 20.95 million shares worth N11.55 million, while FBN Holdings traded 19.45 million shares valued at N119.83 million.

Guaranty Trust Bank sold 14.17 million shares worth N404.46 million, while Transcorp transacted 11.47 million shares valued at N11.72 million.

In all, investors bought and sold 188.77 million shares worth N3.72 billion in 3,363 deals.

This was in contrast with 394.62 million shares valued N3.22 billion exchanged in 4,034 deals on Tuesday.

Meanwhile, the Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, Abuja, met with a delegation of the London Stock Exchange Africa Advisory Group, led by its Chairman, Suneel Bakhshi.

Bakhshi, who spoke with State House correspondents after the meeting, said that the group had a mission on behalf of the London Stock Exchange to help deepen the African Stock Exchange.

He said that Nigeria was a very important country in Africa and also a strategic partner.

“So, we are working very closely with the Nigerian Stock Exchange on a number of initiatives to help deepen the Nigerian Capital Market.

“One example, we are launching tomorrow in Lagos, programme titled-Companies to Inspire Africa; we have indentified many companies that deserve to be recognised and these are SMEs which will benefit from the greatest visibility that we can provide.

“In all emerging markets including African markets, there is a need for greatest transparency; greater liquidity; for greater standardisation and for greater innovation and our belief and principle in setting up the Africa Advisory Group is that London can Exchanges such with the Nigerian Stock Exchange to the benefit of the local Capital Market.

“So, that is just one example; we had a very good discussion today on topic of linking financing better from Pension Funds to infrastructure; that is an area that will be referenced in white papers that we have produced last year and the London Stock Exchange is partnering with our advisers here.

“They have produced five white papers around a variety of topics and they include Green Bond Financing, SMEs financing and Standardised Information Reporting,’’ he said.

He said that all the examples would help to deepen the stock market and provide liquidity so that investors and shareholders in African and Nigeria with greater confidence could finance entrepreneurs and finance companies listed on Exchanges.

On her part, Ms Catriona Laing, the British High Commissioner to Nigeria, said that the group would offer some of the studies that it had done through looking across Africa about what worked in terms of deepening and strengthening stock markets.

More so, Mr Oscar Onyema, Chief Executive Officer, Nigerian Stock Exchange said there was a lot of thought  leadership that the London Stock Exchange Advisory Group brought  on board.

He said that NSE was working with the group to examine some critical issues across the continent of Africa to find solutions that would create win-win situations for the parties.

 

 

 

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Maritime First