Airtel’s Soaring Stocks: A Week of Remarkable Gains and Positive Sentiment

In a week that left investors buzzing with excitement, Airtel’s share price witnessed an impressive surge of 27.84%, solidifying its position as one of the week’s top-performing stocks. The positive sentiment surrounding the telecom giant translated into substantial gains, with investors reaping the rewards to the tune of N1.465 trillion by the week’s close.

The telecom sector, represented by two key players – MTN Nigeria Plc and Airtel Africa Plc, has displayed remarkable resilience in the face of the ongoing global pandemic. Airtel, closing the week at N1,790 per share and boasting a market capitalization of N6.727 trillion on the Nigerian Stock Exchange (NGX), showcased a substantial leap from its starting point of N1,400 per share and N5.262 trillion in market capitalization on October 27.

Airtel Africa, commencing the year with a share price of N1,635.00, notched up a commendable 9.48% gain in its price valuation.

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Market Performance Overview

The broader market indices reflected this exuberance, with the NGX All-Share Index and Market Capitalization recording a robust appreciation of 4.56% and 4.53%, closing the week at 70,196.77 and N38.557 trillion, respectively. While other indices followed suit with positive movements, the NGX ASeM and NGX Oil and Gas indices held steady.

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A total turnover of 2.451 billion shares, valued at N40.570 billion, changed hands in 37,959 deals during the week. This marked a notable uptick from the previous week’s performance of 1.446 billion shares valued at N25.418 billion.

The Financial Services Industry led the activity chart, contributing 60.39% and 52.16% to the total equity turnover volume and value, respectively. The Oil and Gas Industry and the ICT Industry secured the second and third positions in terms of turnover.

Insights from Market Operators

Olatunde Amolegbe, former President of the Chartered Institute of Brokers and Managing Director of Arthur Steven Asset Management Limited, attributed the surge in investors’ confidence to positive earnings releases for the last nine months. The market also responded positively to certain moves by the Federal Government to stabilize the Foreign Exchange market.

David Adonri, Executive Vice Chairman of Hicap Securities Limited, highlighted the ongoing earnings season as a significant factor driving demand for shares. Investors, optimistic about the prospect for a yield environment, displayed resilience in the face of political uncertainties, drawing strength from robust corporate fundamentals.

As the market continues to navigate these dynamic shifts, the week’s stellar performance by Airtel underscores the vibrancy and potential for growth in the Nigerian equities landscape.