MTN shares drop on Nigeria fuel protest

Shares in MTN slipped further in afternoon trade on Tuesday as a number of headwinds faced by its international operations unnerved investors.

By - January 11, 2012
MTN

Shares in mobile operator MTN (MTN) slipped further in afternoon trade on Tuesday as a number of headwinds faced by its international operations, particularly in Nigeria, unnerved investors.

By 14:45 local time, shares in the group declined R2.00, or 1.47% to R133.60 on the JSE, with the group’s shares down close on 7% for the first 11 days of 2012.

A local dealer at BoE Stockbrokers told MyBroadband: “There is concern over more protesting in Nigeria today, over fuel prices. There has also been further unrest between Muslims and Christians in the region. Everyone seems to be watching that.”

A nation-wide strike in Nigeria began on Monday after a decision by government to scrap a fuel subsidy – which has nearly doubled petrol prices as a result.

Bloomberg also recently reported that MTN would spend more than $1 billion in 2012 to improve its network in Nigeria – the group’s largest territory in terms of subscribers at 41.107 million.

Shares in MTN fell by as much as 6% at the back-end of last week amid heightened tensions between Iran and the US, with Europe also involved.

The US Congress granted President Barack Obama the power to impose sanctions on Iran over its nuclear programme with further sanctions urged by the EU. Sanctions would block payments for the Middle Eastern country’s crude oil.

For the quarter ended 30 September 2011, MTN Group recorded 158.59 million subscribers with Iran at 33.314 million subscribers.

“MTN is facing a number of headwinds, which may be temporary, but is putting pressure on the group’s shares nonetheless,” the dealer said.

Reuters also reported on Tuesday that Goldman Sachs dropped the African telecoms operator from its pan-Europe buy list and cuts its rating to neutral.

Forum discussion

Shutterstock is the image partner of MyBroadband – more technology images

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

What is the most important aspect of a mobile service to you?

View Results

Loading ... Loading ...

More News

Using computer vision technique to magnify vibrations

MIT Motion Mag

Researchers apply computer vision technique to see tiny vibrations in large structures like bridges and buildings, writes Jennifer Chu from MIT News.

‘Big Brother’ spying in South Africa exposed

spy data espionage crime

The Right2Know campaign has released its Big Brother Exposed report, detailing how South Africans are being watched by the country’s intelligence structures.

Eskom starts massive maintenance drive, keeps load shedding at bay

Eskom switch

Eskom has so far kept the weekend free of power cuts as it started a massive maintenance drive to improve the performance and reliability of its power generating units.

How much pirates will pay for illegally downloading movies

Movie piracy

Nearly 5,000 Internet users are expected to receive letters in the near future asking them some pointed questions about their online downloading habits.

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
X
bool(true)