Shareholders of MTN Nigeria lose N609 billion in July

Shareholders of MTN Nigeria, recorded a loss of about N609 billion in the month of July following sustained sell pressure witnessed on the stock during the month.

The telecom stock dropped by 13% to N200.10 per share from N230 which was the opening figure for the trading month.

The market sentiment for the telecom firm has remained very low amidst buy-interests and sell-offs as bears dominated proceedings during the period under review.

It was gathered that MTN Nigeria closed its last trading day (Friday, July 29 2022) at N200.10 per share and N4.072 trillion in market capitalisation on the Nigerian Stock Exchange (NGX) as against N230 per share and N4.681 trillion in market capitalisation at the beginning of trading on July 1 2022, hence has earned a loss of N285 billion or 13% month to date.

MTN began the year with a share price of 197.00 NGN and has since gained 1.57% on that price valuation, ranking it 52nd on the NGX in terms of year-to-date performance.

Analysts believed investors should, however, take caution of MTNN’s recent poor performance, having lost 13% of its value in the past four weeks.

The sell pressure is coming at a period MTN Nigeria is expected to release its second-quarter financial report.

This is despite the fact that telecom companies are currently taking advantage of remote working which most companies have adopted following the COVID-19 pandemic to rake in gains from data subscriptions and voice calls.

Many workers are leveraging the Internet for online education, teleworking, gaming and entertainment and there has been a rise in Internet traffic recorded by the Internet exchange point.

Internet traffic had increased as many companies introduced work-from-home policies a week before the government-imposed lockdown.

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