Bloomberg News

MTN Shares Rebound as Fears Ease About Nigeria Disturbances

January 09, 2012

(Updates with closing price in second paragraph.)

Jan. 6 (Bloomberg) -- MTN Group Ltd., Africa’s largest mobile-phone operator, rebounded in Johannesburg trading as concerns eased about protests in Nigeria, the company’s biggest market.

MTN climbed 3.2 percent to close at 136.25 rand today. The stock declined 8.3 percent in the two previous days, the largest two-day drop in more than two years.

The market over-reacted after Nigeria ended a fuel subsidy on Jan. 1, which prompted marches across its cities and threats of strikes by workers, Ferdi Heyneke, a trader at Afrifocus Securities, said by phone today.

Nigeria is MTN’s biggest single market with more than 40 million subscribers contributing 42 percent of the company’s earnings before interest, tax, depreciation and amortization.

--Editors: Robert Valpuesta, Vernon Wessels.

To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at smantshantsh@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


Too Cool for Crisis Management
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus