MTN Nigeria Declines to N4.2Trn Ahead of Key Events
MTN Nigeria Plc is relatively cheaper over selling spree that followed the telecom company unimpressive earnings performances in 2023, and first three months in 2024.
Insiders in the company will not be able to trade on the telecom company stocks from June 28, 2024 until the release of second quarter unaudited financial statement, according to its regulatory filing.
The telecommunication giant’s exposure to foreign currency liabilities weakened its earnings performance, and damaged shareholders fund with a bleak outlook as the same issue persisted.
In its latest rating note, GCR places MTN Nigeria Plc on negative outlook. It added that the negative outlook reflects its high exposure to foreign currency risk, which has resulted in significant exchange losses and large net losses over the last 15 months.
MTN Nigeria reported significant net foreign exchange loss of N740.4 billion in financial year 2023, ended 31 December 2023, and N656.4 billion in the interim results as of Q1 2024.
The market price of MTN Nigeria Plc decline by 6.89% on Thursday in the stock market. The stock price ended the day at N200 after losing N14.8 as alpha seeker paused buying interest in the telecom company.
MTN Nigeria Plc became selloffs target after naira devaluation negative impacts of earnings in financial year 2023 and first quarter of 2024.
More than 4.5 million shares of the company exchange hands in the local bourse on Thursday as stock traders double down on volume from 2.17 million traded in the previous day.
The huge selloffs followed the telecom announcement that the company will commence close period in respect of transaction on shares from June 28. It said the close period will remain in effects until after the release of second quarter unaudited financial statement.
In a chat with MarketForces Africa, analysts said MTN Nigeria Plc price decline has created fresh entry points for investors. The company is trading by about 38% below its 52 week high provides opportunity for fresh positioning, stockbrokers said.
Board of directors are expected to meet to deliberate on MTN Nigeria financial scorecard for second quarter on Monday. #MTN Nigeria Declines to N4.2Trn Ahead of Key Events
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