AIRTELAF leads rally on NGX, ASI up 0.5%

Today, the NGX All-Share Index rose 0.5% to 43,444.20 points due to buying interest in AIRTELAF (+4.4%), FBNH (+1.6%), and UBA (+1.8%). Accordingly, market capitalisation gained ₦111.6bn to ₦22.7tn while YTD return improved to 7.9%. Market activity strengthened as volume and value traded rose 44.4% and 171.6% respectively to 423.8m units and ₦11.6bn. FBNH (223.6m units), STERLNBANK (32.5m units), and TRANSCORP (24.7m units) topped the volume chart while NESTLE (₦5.6bn), FBNH (₦2.8bn), and AIRTELAF (₦833.9m) led by value.

Performance across sectors within our coverage was mixed as 3 indices gained, 2 indices lost while Industrial Goods index remained flat. The AFR-ICT index led gainers, up 2.0% due to buying interest in AIRTELAF (+4.4%). Similarly, the Insurance and Banking indices rose 0.4% and 0.1% respectively on the back of bargain hunting in AIICO (+4.0%), FBNH (+1.6%), and UBA (+1.8%). On the flip side, TOTAL (-10.0%), SEPLAT (-1.4%), and NESTLE (-0.7%) pulled the Oil & Gas and Consumer Goods indices lower by 3.1% and 0.4% respectively. 

Investor sentiment, as measured by market breadth (advance/decline ratio), weakened to 1.0x from 1.4x  as 18 stocks advanced while 18 stocks declined. CUTIX (+8.3%), CORNERST (+7.7%), and CHIPLC (+6.9%) led gainers while TOTAL (-10.0%), MBENEFIT (-6.9%), and LINKASSURE (-5.4%) led decliners. In the subsequent trading session, we expect the market to extend the bullish performance on the back of sustained bargain hunting activities.

Airtel Africa Plc announced the second closing of Airtel Money minority investment transactions with TPG’s The Rise Fund, Mastercard and QIA which was previously announced by the Group on March 18th, April 1st, and July 30th 2021 respectively. With the conditions for second closing having now been met, TPG and QIA have each invested a further $50m, and Mastercard a further $25m, in the secondary purchase of shares in AMC BV from a subsidiary of Airtel Africa. Furthermore, with these second closings, Airtel Africa would have received cumulative proceeds of $500m from the minority stake sales in Airtel Money from the three investors. As previously reported, the proceeds from these secondary stake sale transactions will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.

Market Statistics for Tuesday, 16th November 2021 

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