MTN Nigeria Plc has reported a loss before tax of N177.8 billion compared to a pre-tax profit of N518.8 billion in 2023.
The company attributed the losses to a massive foreign currency loss of N740 billion up from N81 billion reported in 2022.
This is the company’s first-ever loss since it became a quoted company in Nigeria.
According to MTN, “the loss was significantly due to operational changes to the Nigerian Foreign exchange market, including the abolishment of the segmented/parallel structure announced by CBN in June 2023.”
MTN also stated that it has used an official, NAFEM, exchange rate of N907.11/$1 as of 31 December 2023 suggesting loss could be wider if the current exchange rate between the naira and dollar persist by the end of March when it publishes its Q1 results.
Selloffs in the shares of Dangote Cement, Conoil, MTN Nigeria, among others, on Friday, dragged the equity market’s performance indices down by 1.23 per cent to close the week’s trading sessions.
Specifically, investors lost N672 billion or 1.24 per cent, as the market capitalisation, which opened at N54.707 trillion, closed at N54.035 trillion.
The All-Share Index also lost 1.24 per cent or 1.228.32 point, to settle at 98,751.98, as against 99,980.3 recorded on Thursday.
Consequently, the Year-To-Date, YTD, return on the index dropped to 32.07per cent.
Meanwhile, selloffs in Dangote Cement, MTN Nigeria, Fidelity Bank, Sovereign Trust Insurance and Nestle made the market performance to be on a negative terrain.
Analysis of the market activities showed trade turnover drop when compared to the previous session, with the value of transactions down 22.01 per cent.
A total of 367.62 million shares valued at N6.78 billion were exchanged in 9,168 deals, compared to 542.95 million shares valued at N8.70 billion exchanged in 9,650 deals posted previously.
Dangote Cement and Conoil led the losers table by percentage terms of 10 each to close at N135, N90.90 per share respectively.
MTN trailed by 9.96 per cent to close at N200.70, Thomas Wyatt Nigeria lost 9.78 per cent to close at N2.03, while Sovereign Trust Insurance shed 6.52 per cent to close at 43k per share.
On the gainers table, The Initiative Plc and FTN Cocoa Processors led by 10 per cent each to close at N1.98 and N1.65 per share respectively.
Juli Plc followed closely by 9.97 per cent to close at N3.75, Champion Breweries Plc gained 9.94 per cent to close at N3.76 and PZ Nigeria rose by 9.93 per cent to close at N33.75 per share.
On the activity table, Transcorp led in volume with trade of 57.00 million shares valued at N792.05 million, while Access Corporation sold 31.77 million shares worth N667.8 million.
United Bank of Africa (UBA) traded 28.50 million shares valued at N674.07 million and Fidelity Bank transacted 28.07 million shares worth N297.65.
Also, First City Monumental Bank(FCMB) sold 27.92 million shares worth N227.22 million.
However, market breadth closed positive with 43 gainers and eight losers on the trading floor.
