Due to the ongoing xenophobic attack against Nigerians in South Africa, there have been violent retaliation attacks against South African companies in Nigeria – MTN, Shoprite, and MultiChoice (Dstv).
Currently, these hostilities have led to reports of vandalism in and shut down of MTN outlet, Shoprite malls, and DSTV offices in Nigeria. Following these violent xenophobia reprisals, there appear to be fluctuation in MTN Nigeria’s share price on the Nigerian Stock Exchange (NSE).
On Tuesday, MTN opened with a share price of $0.38 (NGN 138.5), but during the course of the day, it gained 1.08%, closing trading at $0.4 (NGN140) per share. From Monday when news of the xenophobic attacks hit social media to Tuesday when the reprisal attacks started, the total number of trades on MTN stocks surprisingly went up from 1.8 million to 3.49 million.
MTN is a telecommunications giant in Nigeria with a 52.6 million Internet users, and a 65.26 million GSM subscribers. This share price fluctuation is coming few days after MTN win the tough battle with Dangote Cement on the Nigerian Stock Exchange.
MTN Nigeria listed on the NSE in May with a market capitalisation of NGN1.3trillion, with a NGN782 billion margin between Dangote Cement. However, at the end of trading on August 19, MTN overthrew Dangote Cement as its market capitalisation stood at NGN2.82trillion as against Dangote Cement’s NGN 2.81 trillion.
However, as of today, the NSE ranks MTN as one of the top 5 decliners. Though it closed at NGN140 yesterday, it is now back to NGN 138.05, with a -1.39% negative change.
Given the pivotal role that MTN plays in the Nigerian economy, we can only wait to see how the telecom industry and the stock will far once the xenophobic dust settles.