Dec 11 (Lagos) - The all share index of the NGX gained 0.71% led by Nigeria's top technology Company MTN Nigeria Plc (
MTNN ). The Company's shares had sold off last month when the CGT induced selling took hold of the exchange.
The selling pressure from the CGT saga seems to be slowing after the finance minister made some remarks that they would be taking another look at that tax. One should not forget that this risk has not gone away yet, that tax guy could come and make some statements which could easily re-start the selling like we saw last month.
MTNN shares were up more than 5% on the floor where deals were taking place higher than the indicative price due to the high demand.
The word seems to be spreading around the low valuation of this tech giant that is likely to report profit after tax in the region of N 1 trillion for 2025. The current valuation around 10 trillion means the P/E ratio is less than 11.
Meanwhile we have legacy businesses like a hotel company listed on the exchange trading at more than 100 P/E, power generation company trading over 100 P/E.
Such numbers are what dreams are made of for value investors and this is again a tech company, largest broadband internet penetration in Nigeria and a fiber-optic internet solution, largest telecoms provider and a fast growing fintech player.
Some other Companies that rose today included paints manufacturer
BERGER , consumer goods company
PZ , and a mining company
JAPAULGOLD which has gained more than 30% this week.