Airtel shareholders earn N1.465 trillion in one week on positive sentiment
Airtel Africa
By Chris Ugwu
Airtel’s share price posted gains of 27.84% in one week, becoming one of the best-performing stocks of the week following positive investors ‘sentiment.
Positive sentiment witnessed on shares of the telecom firm during the week has resulted in investors of the company gaining about N1.465 trillion at the close of trading at the weekend.
The market sentiment for the segment which comprises two telecom firms-MTN Nigeria Plc and Airtel Africa Plc have remained resilient in the face of the pandemic.
Checks by Nairametrics showed Airtel closed its last trading day of the week at N1,790 per share and N6.727 trillion in market capitalisation on the Nigerian Stock Exchange (NGX) as against N1,400 per share and N5.262 trillion in market capitalisation at the beginning of trading on October 27, hence has earned a gain of N1.465 trillion or 27.84% week to date.
Airtel Africa began the year with a share price of N1,635.00 and has since gained 9.48% on the price valuation.
Market performance
The NGX All-Share Index and Market Capitalization appreciated by 4.56% and 4.53% to close the week at 70,196.77 and N38.557 trillion respectively.
Similarly, all other indices finished higher while the NGX ASeM and NGX Oil and Gas indices closed flat.
A total turnover of 2.451 billion shares worth N40.570 billion in 37,959 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.446 billion shares valued at N25.418 billion that exchanged hands last week in 28,933 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.480 billion shares valued at N21.160 billion traded in 16,671 deals; thus contributing 60.39% and 52.16% to the total equity turnover volume and value respectively.
The Oil and Gas Industry followed with 354.911 million shares worth N1.214 billion in 2,917 deals. The third place was the ICT Industry, with a turnover of 175.216 million shares worth N8.218 billion in 3,759 deals.
Trading in the top three equities namely Japual Gold & Ventures Plc, United Bank for Africa Plc, and Fidelity Bank Plc (measured by volume) accounted for 835.584 million shares worth N8.631 billion in 5,514 deals, contributing 34.09% and 21.27% to the total equity turnover volume and value respectively
What operators said
Former President of the Chartered Institute of Brokers (CIS) and the Managing Director of Arthur Steven Asset Management Limited, Mr. Olatunde Amolegbe said:
“The main driver propelling investors’ confidence in the stocks was the nine months earnings that are being released to the market since the last few days some of them have been positive.
The market also seems to be positive for some of the moves by the Federal Government to stabilize the Foreign Exchange market.
Some specific stocks such as financial stocks got a lift as bank stocks benefited from the FX gains and increased in interest rates.
Stocks that generate from revenue in foreign currency such as Airtel have significant income coming in from foreign currency and have also seen an increase in stock prices,” he said.
Mr. David Adonri, Executive Vice Chairman, of Hicap Securities Limited in a chat with Nairametrics said that investors were in the earning season and that what investors will get from dividends is one of the factors that drove the demand for shares in the market during the third quarter.
He noted that the equities market is defying current political uncertainties because investors are futuristic that the prospect for a yield environment is bright.
“Optimists also see strength in the market from the perspective of corporate fundamentals which remain strong despite macroeconomic frailties and assault from misfired public policies,” he said.
Nairametrics