Xenophobic attacks: MTN Nigeria share price drops by 2.13% over investors’ uncertainty

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Story by Olabode Jegede

Amid the Xenophobic attacks, the share price of MTN Nigeria Plc has dropped by 2.13 per cent in one week as investors in the equities market trade the telecommuncation company shares with catuions.

MTN Nigeria share price depreciated to N138 per share on last Friday from N141 it opened for tading on Monday.

Investors reacted as the telecom copany shut down all its stores and service centres across the country over fear of been attacked.

A reprisal attacks targeting the company’s offices and facilities arrive on the heels of persistent xenophobic attacks on Nigerians and other foreign nationals in South Africa.

The company’s share price recovered on last Tuesday, rising by 1.08 per cent to close N140 per share but declined back to N138.50 on Wednesday.

On Thursday, September 5, 2019, MTN Nigeria’s share price fell, dropping to N138.05, a decline of 0.03 per cent and on  last Friday, the leading network provider’s share price dropped further, hitting N138 per share, representing 0.32 per cent.

However, the Chairman of MTN Nigeria, Ernest Ndukwe, has condemned both attacks in a statement, stating that working together serves a better purpose than being divided.

He noted that violence should not be accepted as the solution, rather everyone involved should collaborate to resolve the issues.

His statement came two days after MTN Nigeria’s Chief Executive Officer, Ferdinard Moolman, condemned the attack on properties belonging to Nigerians in South Africa.

According to Ndukwe, “The board of MTN Nigeria wishes to add its unequivocal condemnation of the xenophobia and violence against Nigerians and other nationalities in South Africa over the recent days, as well as the violent response to it in Nigeria. Violence cannot and must never be acceptable and we must reject it in the strongest terms possible.

“We offer our profound sympathies to all those affected and urge all stakeholders and communities in Nigeria, South Africa and other countries, to act with restraint, and to work collaboratively to address these issues.

“It is in all of our interests to work together,” he added.

In response to the attack on its centres and stores, MTN Nigeria closed its offices across Nigeria due to fear of further attack. The company later informed the Managers to resume September 7, 2019, while other staff is expected to resume their duties on Monday, September 9, 2019. Prior to the shutdown, the telecoms firm last week launched a mobile money transfer service, targeting Nigerians without bank accounts, and said it planned to become a payment services bank once it obtains approval from the Central Bank of Nigeria.

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