Airtel Africa Plc has a losing streak at the stock market and investors in the communication outfit are counting their losses as the telecom share price fell for the third consecutive day in the week. The stock has now recorded a cumulative loss of N1.833 trillion. Since the Nigerian bourse opened for weekly trading on Monday, the telecom stock has continued to slide in what market operators have described as an adjustment to the current bearish market sentiment. Airtel led the losers’ chart with a maximum 10% loss over the past three days, resulting in a loss of about N676 billion on Monday, N609 billion on Tuesday, and N548 billion on Wednesday; representing a cumulative loss of N1.833 trillion.
A further look at the share movement revealed that Airtel Africa closed its last trading day, Wednesday, October 19, 2022, at a share price of N1,312.20 per share and N4.931 trillion worth of market capitalisation. On Monday, the company began the weekly trading session with a share price of N1,800 per share and a market capitalisation of N6.764 trillion. The market sentiment for the telecoms firm has remained very low amidst buy-interests and sell-offs as bears dominated proceedings during the period under review following the build-up to 2023 the general elections, interest rate hike, and rising inflation.
Stock market experts said that the Airtel stock price is very high and is currently adjusting to the bearish reality of the market. They said that “right from the penultimate year to the election, the socio-political atmosphere becomes charged. Politicians resort to violent rhetoric and divisive tactics, which deepens the country’s socio-political fault lines, to establish a competitive edge. During this period, the economy becomes overloaded with money arising from excessive election spending, which spikes inflation. “Historical antecedents indicate that on average, both equities and bonds show positive or negative performance in the penultimate year and immediately after the election.
