Just days after MTN Nigeria’s stocks grew by 2.74% to make it the most capitalised company listed on the Nigerian Stock Exchange, the telco has dropped that position into the waiting hands of Dangote Cement.
The drop of 4.4 per cent in MTN’s stock value came as a result of trade offs by bargain hunters who took advantage of the rush generated by the imminent inclusion of MTN into the MSCI index to sell off stock.
The rush sustained a bullish run of Nigeria’s biggest foreign direct investment (FDI) stocks which enabled the bargain hunters to trade at the most preferable price existing.
Dangote Cement, which was the most capitalised market on the NSE before MTN made the leap, is now the most capitalised market as a result of the tradeoffs of stocks. The tradeoffs saw the Nigerian All Share Index drop 0.22 per cent in value causing the resulting drop in MTN’s stock.
Dangote Cement had a 0.9 per cent increase in the price of its shares. The shares increased from N164.50 on Monday to N166 on Tuesday which resulted in a market capitalisation of N2.83 trillion. At this value, Dangote overtook MTN’s market capitalisation which was N2.69 trillion.
Earlier this year, MTN listed on the Nigerian Stock Exchange in exchange for a reduction in the fine of N5.3 trillion that was placed on it by the Nigerian Communications Commission. From the time it listed, MTN’s market capitalisation has grown from N1.3 trillion to its current value of N2.69 trillion.
The competition between the stock prices of MTN and Dangote Cement still continues. Based on factors which include perceived growth prospects, the stock value of each company may rise or dip making the title of the most capitalised market in the Nigerian economy a game of passing the baton.
This is of course pending when another company will bridge the gap between the value of stocks.
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