By Ayomide Otitoju
Shares of MTN Nigeria Plc recorded a sharp decline on the Nigerian Exchange (NGX) Tuesday, shedding over 2% in market value after a surge in off-market cross deals triggered a wave of sell-side pressure, despite the stock recently reaching a new 52-week high.
The telecommunications giant, trading under the symbol MTNN, closed at ₦279 per share after 16.1 million units changed hands during the session. Market data showed that a significant portion of the trades occurred off the standard trading floor, pointing to large block transactions between institutional investors.
AIICO Capital Limited confirmed executing a cross deal involving 10 million shares at ₦270 per unit, along with an additional 3.8 million units traded at ₦279—both outside regular trading. The trades led to a 2.07% drop in MTNN’s share price, making it the most significant drag on the Nigerian All-Share Index (ASI) for the day.
Despite the price retreat, MTN Nigeria maintained a robust market capitalisation of ₦5.857 trillion, supported by 20.995 billion outstanding shares. Analysts say investor confidence in the company’s long-term outlook remains intact.
“The decline is largely technical,” noted one Lagos-based equities analyst. “There’s no fundamental weakness driving this. On the contrary, MTN has returned to profitability in Q1 2025, and expectations are high for its H1 earnings.”
Still, the analyst added that concerns persist over MTN’s capital structure. The company’s shareholders’ equity remains under pressure, and there has been no public indication of plans to raise capital or restructure its balance sheet.
Some market participants interpreted the price drop as a buying opportunity ahead of mid-year earnings reports. However, others remain cautious amid mounting operating costs and regulatory uncertainties in Nigeria’s telecom sector.
“With MTN’s consistent cash flow and dominant market share, the stock remains attractive,” the analyst said. “But management must address structural and strategic concerns to sustain investor confidence.”
Tuesday’s market action underscores the volatility of investor sentiment in an environment where institutional cross-dealing continues to exert considerable influence on stock movements.
Let me know if you’d like a follow-up piece on MTN’s Q1 results or a breakdown of sectoral performance on the NGX.
