The investors of Airtel have continued to experience losses as Airtel’s share price fell for the third consecutive day on Wednesday. The stock has now recorded a total loss of ₦1.833 trillion.
One would think that was the end, not until it recorded another ₦609 billion on Tuesday and then ₦584 billion on Wednesday. All amount to the loss of ₦1.833 trillion
The report also revealed that Airtel closed its last trading day on the 19th of October, 2022 at a share price of ₦1, 312.20 per share and ₦4.931 trillion worth of market capitalization.
It also began a weekly trading session on Monday with a share price of ₦1,800 per share and a market capitalization of ₦6.764 trillion.
Chairman Hicap Securities Limited, David Adonri, said Airtel’s Stock price is very high and currently adjusting to the harsh market.
“Right from the penultimate year to the elections. the socio-political atmosphere becomes charged. Politicians resort to violent rhetoric and divisive tactics, which deepens the country’s socio-political fault lines, to establish a competitive edge.”
“During this period, the economy becomes overloaded with money arising from excessive election spending that spikes inflation.” He added.
Speaking also, analysts at CardinalStone Partners Limited also said the build-up to the 2023 election will keep foreign investors at bay and throw up more financial account-related concerns.
They noted that the pre-election year will likely limit the magnitude of currency adjustment made at the official market in the current year.
According to them, similar to the trend witnessed in emerging and frontier markets, Nigeria was also mostly unappealing to foreign capital providers in H1’22 (1st quarter of 2022).
They also pointed out the lack of market-reflective FX rates, illiquidity, and a backlog of uncleared foreign exchange demand dampened investors’ sentiments.
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