JSE halts trading in MTN Group shares
THE Johannesburg Stock Exchange (JSE) yesterday
halted trading in MTN Group shares, pending an
announcement from the company.
The stock tumbled last week after MTN
was slammed with a fine of N1.04
trillion ($5.2 billion) fines in Nigeria, by
the communications commission. The
company’s bonds dropped for a third
day, driving yields to a record.
MTN allegedly breached SIM card
registration rules, as it failed to
disconnect customers with unregistered
SIM cards totalling about 5.2 million. The
Nigerian Communications Commission
(NCC) requires mobile network operators
to register all customers in a bid to curb
crime.
According to bdlive.co.za, which quoted
JSE Director Issuer Regulation, John
Burke, “the JSE has halted all trading on
MTN Group Limited. Trading will resume
as soon as MTN Group Limited has
issued a SENS announcement.” The JSE is
also investigating the company over
possible insider trading.
Also, Bloomberg has it that the
telecommunications firm’s stock fell as
much as 9.7 per cent before paring
losses and was the biggest decliner on
the benchmark FTSE/JSE Africa All Share
Index. Trading was halted with the stock
5.3 per cent down at 149.48 rand by
10:33 a.m. in Johannesburg.
The securities have slid 22 per cent since
MTN said it’s facing the fine on Octoer
26.
Investors “were expecting something to
come out at the weekend and it hasn’t,
and now the pressure is on because
they’ve been told that they have to pay
this fine by next week,” Rob Pietropaolo,
a trader at Vunani Private Clients (Pty)
Ltd., said by phone from Johannesburg.
“Because of their lack of communication,
investors are punishing the share and
obviously running for safety.”
The JSE halted all trading in the stock,
which will resume once MTN has
released a statement, the JSE said in an
e-mailed statement.
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