MTN Nigeria Plc, one of the leading telecommunications companies in the country, has seen a sharp decline in its market value on the Nigerian Exchange (NGX), losing over 7% in the past seven trading sessions due to weakening investor sentiment.
Market analysts had anticipated a stable performance from MTN Nigeria as the company’s first-quarter earnings were expected to reflect the impact of its post-naira devaluation strategies, including renegotiated tower deals. However, the telecom giant experienced two consecutive declines in share prices last week, with significant block trades occurring outside the Nigerian Exchange.
Trading data from the local stock market revealed that the company’s share price dropped to N254 during midweek off-market transactions. By Wednesday, MTN Nigeria’s stock closed at N245, with 10.96 million shares worth over N2.687 billion traded on the NGX.
Foreign investors have been strategically positioning themselves in the telecom sector ahead of its Q1 earnings report. Despite these activities, MTN Nigeria’s market capitalization declined to N5.153 trillion, reflecting a 4% loss within a week, largely due to a single day of heavy sell-offs.
Midweek, a major block trade involving five million shares at N245 did not alter the stock price. Experts explained that such cross trades occur when a broker executes buy and sell orders internally, bypassing the public exchange.
