MTN Nigeria's Arrival Transforms Fortunes of Lagos Stock Index

(Bloomberg) -- Nigeria’s benchmark stock index has wiped out almost all of its 2019 losses -- thanks to the recent arrival of a new giant listing.

The main Lagos gauge was languishing 10% lower for the year on the eve of MTN Nigeria Communications Plc’s market debut on May 16. But a flood of investors seeking shares in the mobile carrier sent its stock surging by the daily limit of 10% for five days in a row, reducing the overall market’s decline since the start of January to just 1% as of Thursday.

MTN Nigeria was 3.5% higher in Lagos Thursday as the split between buyers and sellers achieved some balance for the first time after almost 70% of gains from the listing price. The unit of Johannesburg-based MTN Group Ltd. has a market valuation of about $8.5 billion, the largest in Lagos after Dangote Cement Plc.

To contact the reporters on this story: Tope Alake in Lagos at talake@bloomberg.net;Paul Wallace in Lagos at pwallace25@bloomberg.net

To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, John Viljoen, James Cone

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