Airtel Africa Plc recorded a 10% price down in its market valuation as sell-side investors unpacked the telecoms company’s shares in the local bourse.
This is the company's second share sale in the previous seven days, lowering its market valuation by more than N1 trillion and making it the top loser in the Nigerian Exchange's equities sector on Tuesday.
According to data from the Nigerian Exchange, the telecom company has 3.758 billion outstanding shares, which are currently trading at N1198, down from N1,331.10 earlier in the day.
In the last seven trading sessions in the stock market, Airtel Africa shares peaked at N1,479. Unimpressed by its weak earnings outing, sell-side investors have continued to dump Airtel Africa, somehow, it turns out to be a kind of market re-pricing of previous overvalued stocks.
Now, Airtel has lost the number 1 position in the market movers category; and the price could dip further as the Nigerian Exchange begins to struggle to gain traction after an early boom in 2023.
At the close of the trading session, Airtel Africa now worth N4.5 trillion on the Nigerian stock market, as its share price lost 10% today. This, as expected, is another daily loss after a 10% price down last week.
The cumulative effect of the selloffs has kept the market price a bit cheap than when it was eyeing N2000 – Airtel Africa market valuation had inched near N7 trillion after the company buyout its Nigerian minority interest last year.
Falling from grace, the company lost N500.302 billion today. In total, in the last seven days, Airtel has lost N1.056 trillion. Analysts said the price down is heavy and Airtel Africa needs to push something out to boost confidence.
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