Following the historic MTN Nigeria listing in May 2019, the Nigerian Stock Exchange (NSE) welcomes yet another giant corporate on its main board. Airtel Africa (AIRTELAFRI) registered a total 3.8 billion units of its share on the NSE at N363, adding N1.4tn to the equity market capitalization, making AIRTELAFRI a 3rd most capitalized entity on the Nigerian bourse.

Together with MTNN (N2.6tn, telcos now account for 28.7% of the total market capitalization). Notably, 100,110 units of the newly listed shares, worth N40.0mn, was traded, as the ticker surged 10.0% by the close of trade.

Accordingly, the NSEASI added +0.1% to close at 29,318.0pts while YTD return moderated to -6.7%. Total market capitalization jumped to N14.3tn.

Performance across sectors stayed broadly bearish save for the Telecom sector as the upsurge in the price of AIRTELAFRI (+10.0%) more than offset the decline in MTN Nigeria (-0.3%). The Banking (-2.2%) sector led the laggards, due to declines in Guaranty Trust Bank (-3.0%), ETI (-8.7%), and FBNH (-3.2%).

The Oil & Gas (- 0.7%), Industrial (-0.5%), Insurance (-0.5%), and the Consumer Goods (-0.4%) sector indices all trended southwards. Market breadth was underwhelming, closing at 0.4x as only 8 stocks advanced while 20 declined.

In the immediate term, the arrival of Airtel Africa, earnings publication and interim dividend announcements should spurbuying interest.

United Capital Plc Research (UCR)

SOURCE:https://brandspurng.com/2019/07/10/airtel-africa-jumps-10-0-on-arrival/