Will Omicron COVID variant affect my investments?
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Friday letters are usually dedicated to taking questions from our community. Do you have a question for us? Please feel free to send an e-mail to info@themoneyafrica.com or a DM to any of our social media channels.
QuestionÂ
What is this MTN news about, I am interested in buying?
Answer
This week, MTN Nigeria opened a public offer for the sale of 575 million shares at ₦169 per share.Â
The shares are being sold by the parent company, MTN Group, to retail investors.Â
The minimum number of shares you can buy is 20 shares, and thereafter you can buy in multiples of 20.Â
So, if you buy 20 units of MTN Nigeria shares at the current price which is ₦169 per share, you will get 1 free unit of MTN shares. These free shares, however, would not be available to you except you hold for at least a year after you bought them.Â
Also, you are only allowed to have a maximum of 250 free shares per person.
To buy the shares, you can contact your stockbroker if you have a Nigerian stockbroking account.
If you do not have a Nigerian stockbroking account, you can take part through this website
https://retail.primaryofferng.com/auth/login
And follow the steps.Â
QuestionÂ
What is a public offer and retail investor?
AnswerÂ
A public offer is when a firm decides to sell its shares to the public. They could be newly issued shares or shares owned by an existing key investor.
A retail investor is a non-professional investor. They execute their trades through traditional or online brokerage firms or other types of investment accounts.Â
They purchase securities for their own personal accounts and often trade in smaller amounts as compared to institutional investors.
Institutional investors is another name for professional investors and fund managers.Â
Question
What's the Omicron variant about, I heard it is affecting the stock market?
Answer
The Omicron variant is a new variant of the Covid-19.Â
Ever since this variant was first identified in the US, it has affected the financial markets in different ways.
The stock market has taken a hit as the three major US stock market indices declined by over 3% just within three days.
The S&P 500 declined by 3.06%, the Dow Jones declined by 3.17%, and the Nasdaq composite index declined by 3.35%.
Investors are worried that the new variant could lead to lockdowns and other stiff measures across the world. Some countries have done so with South Africa.
The stock market, however, picked up a bit, as at the close of market yesterday.
For some investors, the dip in share prices is a buying opportunity.Â
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