MTN Nigeria which began trading on the Nigerian Stock Exchange on May 16, opened last week at 108.90 Naira per share and closed the week at 140 Naira, a 28.56 percent gain.
MTN decided to list its local company in Nigeria in 2016 after agreeing to pay a $1.7 billion fine to settle a SIM card dispute with the government. The listing was scheduled for the first half of 2019. MTN’s listing was done by Introduction, that is, the shares of existing shareholders was listed without an additional public sale of shares. Once listed, MTN Nigeria shareholders were free to trade their shares on the market.
However, news emerged yesterday that MTN’s listing of its shares on the Nigerian Stock Exchange was under investigation by the Economic and Financial Crimes Commission (EFCC). There are claims of market manipulation allegedly carried out by MTN officials, who were then quizzed about their involvement.
Below is the Ventures Africa Weekly Economic Index, for the week ending 24th of May, 2019. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange (NSE), as of 24th May 2019, showed that the All-Share Index appreciated by 6.96 percent from the previous week ending 17th of May 2019. Market capitalization at the close of trading during the week under review was N13.602 trillion, a 6.96 percent increase from N12.717 trillion recorded the previous week. The All Share-Index for the week under review closed at 30,881.29
Top five price gainers and decliners in the week under review:
Top five price gainers
Thomas Wyatt Nig. Plc.
MTN Nigeria Communications Plc.
Dangote Cement Plc.
Fidson Healthcare Plc.
Top five price decliners
Consolidated Hallmark Insurance Plc.
Sterling Bank Plc.
Academy Press Plc.
Neimeth International Pharmaceuticals
Livestock Feeds Plc.
How did the Naira fare?
The Naira’s value remained the same against the dollar last week as it ended at 359 Naira per dollar on the 24th of May 2019, the same value it had recorded a week before.
How did the price of oil fare?
Brent oil prices closed out the week on the 24th of May 2019 at $64.97 per barrel, its lowest price yet this year. The fall in oil prices last week has been attributed to reduced oil demand, oil surplus and the fear of a global economic slowdown that could be caused by the ongoing US-China trade war. There are growing fears of the return of the oil glut that hit oil prices in 2014 before tapering off in 2017.