Airtel’s Share Selloff Triggers N340bn Loss For Investors As NGX Tumbles


The Nigerian Exchange (NGX) tumbles the first trading session in the week as investors lost about N340 billion due to a tsunami of selloffs that hit Airtel Africa shares, shedding a tenth of its opening price.

According to market data, pricey AIRTELAFRI share tumbled by 10.0% to N753.30 after opening the day at N837. This resulted to a 1.7% decline in the All-Share Index to 38,507.33 points. Accordingly, month-to-date gain moderated to +0.2% while year to date loss widened to -4.4%.

The total volume of trades increased by 2.9% to 297.35 million units, valued at NGN3.65 billion, and exchanged in 4,402 deals. ACCESS was the most traded stock by volume at 43.14 million units, while UHOMREIT was the most traded stock by value at NGN695.88 million.

Analysing by sectors, the Insurance (+0.4%), Banking (+0.2%) and Oil & Gas (+0.1%) indices closed higher while the Consumer Goods (-0.2%) index declined. The Industrial Goods index closed flat.

As measured by market breadth, market sentiment was negative (0.8x), as 25 tickers lost relative to 19 gainers. AIRTELAFRI (-10.0%) and OKOMUOIL (-9.4%) topped the losers’ list.

Meanwhile CWG (+9.7%) and BERGER (+6.7%) recorded the most significant gains of the day.

Supporting the bearish outing, STANBIC shed 2.4% and GUARANTY dropped 1.4% of its share price as market capitalisation declined ₦339.8 billion to ₦20.1 trillion.

Mixed Sector Performance

Afrinvest said performance across sectors under its coverage was mixed as 3 indices gained, 2 lost while the Industrial Goods index closed flat.

The AFR-ICT index led laggards, down 4.8% due to sell-offs in AIRTELAF (-10.0%). Similarly, the Consumer Goods index fell 0.2% following price depreciation in INTBREW (-1.8%), FLOURMILL (-1.0%), and DANGSUGAR (-0.3%).

Conversely, the Insurance and Banking indices rose 0.4% and 0.2% respectively due to buying interest in MANSARD (+2.3%), NEM (+3.9%), ACCESS (+3.1%), and ZENITH (+0.9%). Also, the Oil & Gas index inched higher by 0.1% on the back of bargain hunting in OANDO (+1.7%).

Investor Sentiment Wanes

Investor sentiment, as measured by market breadth weakened to 0.7x from 1.6x recorded in the last trading session as 19 stocks advanced while 26 stocks declined.

CWG (+9.7%), BERGER (+6.7%), and REDSTAREX (+4.2%) led gainers while AIRTELAFR (-10.0%), OKOMUOIL (-9.4%), and CORNERSTONE (-9.1%) led decliners.

“In the next trading session, we expect the market to sustain its bearish performance as investors take profit”, Afrinvest said.

Source: Market Forces

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