MTN Nigeria Drops 2% as Cross Deals Stir Sell Pressure

MTN Nigeria Drops 2% as Cross Deals Stir Sell Pressure

MTN Nigeria’s equities took a notable dip on the Nigerian Exchange (NGX) after hitting a fresh 52-week high, as large-volume cross deals spurred a wave of sell-side activity that knocked over 2% off its market value.

The telecom giant, trading under the ticker MTNN, closed at ₦279 per share, following the exchange of 16.096 million units of its stock—a volume spike that coincided with heavy off-market transactions, according to market data.

AIICO Capital Limited confirmed that a 10 million-unit cross deal was executed at ₦270 per share, alongside an additional 3.8 million units traded at ₦279, all outside the standard trading floor. These trades pulled MTNN’s stock down by 2.07%, making it the biggest drag on the Nigerian All-Share Index (ASI) for the session.

Despite the dip, MTN Nigeria’s market capitalisation stood firm at ₦5.857 trillion, with 20.995 billion outstanding shares, reflecting continued investor interest in the telco’s long-term fundamentals.

Market watchers noted that the slump is not tied to weakening performance. On the contrary, MTN Nigeria reported a return to profitability in Q1 2025, with analysts projecting improved earnings in the first half of the year. However, its shareholders’ funds remain under pressure, and the group has yet to announce any capital-raising plans to shore up equity levels.

While the sell-off was largely technical, some investors are viewing it as an opportunity to reposition ahead of H1 earnings. Still, concerns linger over the absence of a disclosed strategy to reinforce shareholder value amid rising operating costs and regulatory challenges.

“As long as profitability continues, the stock remains attractive,” said a Lagos-based equities analyst. “But management needs to address capital structure concerns sooner rather than later.”

With its dominant market share and consistent cash flow, MTN Nigeria remains a heavyweight on the NGX. Yet, episodes like this week’s trading dip highlight the fragility of investor sentiment in an environment dominated by institutional cross-dealing. FCMB Legal Liability Soars 350% as Complaints Pile Up