Xenophobia Retaliations: MTN Nigeria Share Price Suffers Fluctuation

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.

 

MTN Nigeria wants to borrow N400 billion

MTN Nigeria wants to borrow N400 billion

MTN Nigeria wants to borrow N400 billion
MTN Nigeria wants to borrow N400 billion

The MTN Group plans to borrow as much as N400 billion naira ($1.1 billion) in Nigeria this year as Africa’s largest wireless carrier by sales seeks to fund local investment and replace existing debt in Nigeria.

According to Bloomberg, MTN plans to sell bonds and take out long-term loans as Nigeria recovers from a 2016 economic contraction.

The carrier expects to list its Nigerian unit on the Nigerian Stock Exchange by the end of 2018.

Nigeria’s securities regulator is preparing for record bond issuance from companies seeking to benefit from lower interest rates and an economy on the mend, it said this week.

“We want to gear up our debt on an operational level away from the holding structure,” MTN’s Chief Financial Officer, Ralph Mupita, said in an interview.

“The debt must be where the Ebidta is and we want to raise as much as possible in local currency.”

MTN’s net debt rose to 57 billion rand ($4.5 billion) in 2017 from 52 billion rand the previous year.

The Johannesburg-based company plans to shift its focus from dollar-denominated debt to debt in local currencies where it operates, Mupita said.

MTN also recently raised money in local currency for its Ghanaian and Ivory Coast operations, according to Bloomberg data.

MTN shares declined 0.6 percent Wednesday, on a day that U.S. President Donald Trump reinstated economic sanctions on Iran, the company’s second-biggest market. The carrier is valued at 234 billion rand.