(Bloomberg) -- Ghana stocks are feeling the MTN effect.
The country’s benchmark index has tumbled more than 8 percent in May, set for its first monthly decline since September, as investors sell shares to participate in the West African country’s biggest-ever initial public offering, the listing of MTN Group Ltd.’s local unit.
The Ghana Stock Exchange Composite Index has dropped for nine days, its longest losing streak since 2015. Africa’s biggest mobile-phone company by subscribers plans to sell a 35 percent stake in its local unit and opened bidding on May 29 for 4.64 billion shares.
“From the way offers to sell are increasing as the days go by, it suggests that people are selling to buy MTN shares -- the IPO is fairly priced and the company’s dividend policy puts it in the category of high-cap stocks already on the market,” Eli Keledorme, a stock analyst at SAS Finance Group in Accra, said by phone.
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