MTN Nigeria listing: Equities market cap hits N2.27trn in May
Temitope Adebayo
The MTN Nigeria listing on the Nigerian Stock Exchange (NSE) lifted the market capitalization (cap) of the equites market by N2.27 trillion in May.
The market opened in May at N10.96 trillion to close May 31, 2019, at N13.68 trillion, while the NSE ASI appreciated by 6.55 per cent or basis points to 31,069.37 basis points from 29,159.74 basis points the market opened in May.
The telecoms giant on May 16 was admitted into the NSE premium board category, following its official listing by the introduction of 20.35 billion units of ordinary shares valued at N1.8 trillion.
The Managing Director, Enterprise Stockbrokers Limited, Mr Rotimi Fakayejo explained to our correspondent that the company listing impacted on a market cap in May, stressing that market felt liquidity and other listed companies benefited.
According to him, “when there is a new listing on NSE, the market cap is expected to feel the impact but investors return might appreciate or depreciate which in the case of MTN Nigeria returns in May appreciated.”
The head of research, PanAfrican Capital Plc, Mr. Moses Ojo said, the new listing impacted on market appreciation in May.
Meanwhile, the equities market closed on a negative in its Year-till-Date performance, attributable to 2019 political uncertainty that led to foreign investors exiting the market in March.
The NSE All-Share Index (NSE ASI) dipped by 1.15 per cent or 361.13 basis points in Year-till-Date performance to 31,069.37 basis points from 31,430.50 basis points the market opened this year.
From the perspective of market capitalization (cap), the NSE equities market segment closed on a positive after gaining N1.95 trillion over MTN Nigeria listing in May.
The market cap, which is the market value of a publicly traded company’s outstanding stocks opened this year at N11.73 trillion, gaining N1.95 trillion or per cent to close May 31, 2019, at N13.68 trillion.
“Generally, the equities market closed negative in five months of 2019 but the new listing impacted on the market cap in May.
When there is a new listing, it does not affect the market ASI but affects the market cap.
It simply means, in five months, average returns dropped but the listing lifted the market cap, “Ojo explained to our correspondent.
Speaking on the market performance in five months of 2019, Ojo said, the political uncertainty as at the result of the election affected the market.
“The elections led to foreign investors holding to observe what is happening while domestic investors were holdings.
Throughout 2018 until we had elections, the market has taken a beat. We were not expecting much as a result of political uncertainty.”
The equities market in the first quarter (Q1) of this year started on a negative over domestic and foreign challenges.
Investors’ profit-taking in Oil & Gas and Consumers goods stocks listed on the NS down the equities market segment by N59 billion in Q1 of 2019.
Market cap had opened the year at N11.672 trillion and closed March 29, 2019, at N11.731 trillion, translating into N59 billion declines.
