Shares in MTN slumped before the market closed last Tuesday
Shares in African mobile phone giant MTN slumped before the market closed on Tuesday as news of Nigeria's currency free-fall against the dollar stoked concerns about MTN earnings, a fund manager said.
Shares in the company closed down 11.63%, or R12.10, to R91.90, under-performing the JSE Top 40 index, which ended down just 2.90%. "It's basically on the devaluation of the Nigerian naira which will hamper MTN earnings out of Nigeria," said Michele Santangelo, a fund manager at Cortex Securities.
Media reports suggest that the naira is in free-fall against the dollar after that country's central bank limited the amount of US dollars sold at its fortnightly auction on Monday.