Market capitalisation plunges by N294 billion

Technology firm, MTN Nigeria Communications Plc has announced the approval of its purchase of 2.6GHz spectrum by the Nigerian Communications Commission (NCC).

MTN in a statement, signed by the Company Secretary, Uto Ukpanah and made available on the Nigerian Stock Exchange, yesterday, disclosed that the license of the 2.6GHz spectrum is for 10 years which would run from September 7, 2023 till April 16, 2033 when it can be renewed.

The telecommunications firm, which explained that NCC approved the transfer and assignment of the 10MHz frequency division duplex (FDD) in the 2.6GHz spectrum band from OpenSkys Services limited to it, said the spectrum would enable the telecom giant to “enhance network capacity and improve customer experience.

Commenting on the acquisition, MTN Nigeria, Chief Executive Officer, Karl Toriola, said: “The acquisition of the additional 10MHz FDD in the 2.6GHz spectrum band is an important milestone in the execution of our Ambition 2025 strategy. This spectrum will enable MTN Nigeria to roll out our network capacity more efficiently and enhance our sustainable priorities.

“Not only will it help to support the growing demand for data in the country, but will improve the overall Internet experience in line with our commitment to delivering quality service to our customers. Importantly, this also aligns with our ongoing support of the Federal Government’s plan to deepen broadband penetration in Nigeria.”

Meanwhile, trading in the Nigerian stock market sustained its bearish sentiments yesterday, causing market capitalisation to plunge by N294 billion, amid profit-taking in Nestle Nigeria Plc and 44 stocks.

Precisely, the All-Share Index declined by 535.98 points, representing a loss of 0.80 per cent to close at 66,760.20. Also, market capitalisation dipped by N294 billion to close at N36.538 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Nestle Nigeria, Dangote Sugar Refinery, NASCON Allied Industries, MTN Nigeria Communications (MTNN) and Nigerian Exchange Group.

As measured by market breadth, market sentiment was negative, as 16 stocks gained relative to 45 losers. Chellaram and CWG emerged the highest price gainer of 10 per cent each to close at N3.19 kobo and N6.93 kobo respectively, while Vitafoam Nigeria followed with a gain of 9.78 per cent to close at N24.70 kobo.

Oando rose by 9.47 per cent to close at N9.25, while Wema Bank advanced by 8.94 per cent to close at N5.12 kobo. On the other side, eTranzact International and Regency Alliance Insurance led others on the losers’ chart with 10 per cent each to close at N8.10 and 36 kobo respectively, while NASCON Allied Industries and Dangote Sugar Refinery followed with a decline of 9.96 per cent each to close at N47.00 and N52.00 respectively kobo.
Unity Bank lost 9.92 per cent to close at N1.09, while University Press depreciated by 9.77 per cent to close at N2.31 kobo.

The total volume of trades increased by 24.11 per cent to 645.541 million units, valued at N11.014 billion, and exchanged in 10,554 deals.Transactions in the shares of Transnational Corporation (Transcorp) led the activity with 87.824 million shares worth N491.690 million. United Bank of Africa (UBA) followed with a volume of 75.849 million shares valued at N1.036 billion, while Access Holdings traded 69.448 million shares valued at N1.052 billion.

Fidelity Bank traded 48.323 million shares worth N387.343 million, while Guaranty Trust Holding Company (GTCO) traded 39.709 million shares worth N1.326 billion.