Following Airtel Africa’s listing yesterday on the floor of the Nigeria Stock Exchange (NSE), the market recorded a bullish outing despite losses in bellwether stocks forcing market capitalisation to increase by N1.4bn to N14.3trn.
The Cross Border Secondary Listing of 3,758,151,504 ordinary shares of Airtel Africa Plc were listed at an offer price of N363 per ordinary share on the Main Board of The Exchange and at 80 pence per ordinary share on the main market of the London Stock Exchange, the primary listing exchange.
The listing of the company’s shares has added N1.36trn to the market capitalization of The Exchange, further deepening the Nigerian capital market.
AIRTELAFRI (+10.0%), NIGERIAN BREWERIES (+0.8%) and DANGFLOUR (+1.8%) enjoyed the most buying interest.
Thus, the local bourse sustained its bullish run, appreciating 0.1% to settle at 29,318.85 while year to date (YTD) loss moderated to 6.7%.
Similarly, activity level strengthened as volume and value traded inched up by 36.1% and 41.8% to 294.4m units and N3.2bn respectively. CORNERST (80.1m units), ZENITH (48.5m units) and GUARANTY (29.8m units) were the top trades by volume while ZENITH (N922.8m), GUARANTY (N840.9m) and MTNN (N491.7m) led the top trades by value.
Performance across sectors was negative as 5 indices closed in the red. The Banking and Oil & Gas indices led decliners, shedding 2.2% and 0.7% respectively, following sell offs in GUARANTY (-3.0%), ETI (-8.7%), FORTE (-5.4%) and CONOIL(-6.9%).
Also, losses in DANGCEM (-1.3%) and WAPIC (-7.0%) drove a 0.5% decline in the Industrial Goods and Insurance indices respectively. The Consumer Goods index trailed, down 0.4% as a result of sell pressures in DANGSUGAR (-8.3%), PZ (-5.8%) and FLOURMILL (-1.8%).
Investor sentiment as measured by market breadth weakened to 0.4x from 1.2x in the previous trading session as 8 stocks advanced compared with 20 decliners.
The top performers were CADBURY (+4.4%), JAPAULOIL (+4.3%) andDANGFLOUR (+1.8%) while GLAXOSMITH (-9.8%), COURTVILLE (-8.7%) and ETI(-8.7%) declined the most.
Analyst at Afrinvest said: “Our bearish outlook on the market remains unchanged, as we believe today’s bullish run is only temporary.”
Commenting on the listing, Mr Oscar N. Onyema, Chief Executive Officer, NSE, said: “Listing on the Exchange reaffirms Airtel Africa’s long-term commitment to expanding opportunities and providing everyday services to Africans and Nigerians in particular. It also indicates the firm’s belief that our platform, which has a total market capitalization of N25.20Tn across various asset classes, remains a veritable avenue for raising capital and enabling sustainable national growth. This listing serves to deepen the telecoms and technology sector for investors and provides an opportunity for a wider group of Nigerians to be part of the African telecoms growth story.
“Today’s listing is a promising development in Africa with Airtel Africa being the second company to have its ordinary shares listed on both the London Stock Exchange and The Nigerian Stock Exchange. This gives credence to the successful partnership between the two exchanges. I encourage similar situated companies to explore the different opportunities for raising capital on the Exchange’s platform.”