MTN Shares Crash by 2.6% at Johannesburg Stock Market Over Suspended Fine Talks

The shares of South African telecommunications giant, MTN, plunged after Nigerian government suspended talks about a $3.9 billion fine.

The suspension is as a result of the incomplete investigation by the House of Representatives into the nature of the penalty.

The stock shed 2.6 per cent, the most since May 12, to R125 as of 9.32am in Johannesburg, valuing the company at R231 billion ($14.8 billion).

The shares have plunged almost 35 per cent since the fine, originally set at $5.2 billion, was slammed on the telco in October.

Peter Takaendesa, an analyst at Mergence Investment Managers, said by phone from Cape Town on Monday, May 23:“Any delays in finding a resolution for the MTN fine will play into trading and keep MTN’s share price suppressed.”

“The big event to watch this week will be MTN’s annual general meeting, where the market might also get additional clarity,” he added.