JSE suspends trade in MTN stocks

The Johannesburg Stock Exchange (JSE) on Monday, suspended trading in the shares of telecoms firm MTN, with a warming to shareholders and investors to be cautious in dealing with the futures of the telecom giant.

This is coming on the heels of a N1.4 trillion fine imposed on the company by the Nigeria Communications Commission (NCC) for failure to cut off unregistered users.

“Yes, trading in MTN shares has been suspended and the information was broadcast across the trading platform,” said Peter Redman of the surveillance department of the South African.

Africa’s biggest mobile phone firm was fined 5.2 billion dollars last week by Nigerian authorities.

The company however resumed trading on the JSE after the initial suspension on Monday.

The telecommunications company’s shares were halted few minutes before 11am, but resumed trading at 1:40 pm, with warning to shareholders and investors to be cautious in dealing with the futures of the telecom giant.

Read also: N1.4trn fine: MTN moves to escape NCC hammer

“After the company’s announcement released on SENS at 13h33, trading in the company’s shares will resume with a ten minute re-opening auction at 13h40,” the JSE said.

MTN shares have been taking an unprecedented fall since the fine was handed down on October 26, falling by over 12 percent in a single day. The decline continued on Tuesday, October 27 as MTN shares lost more value, falling by another four percent, and again by 2.6 percent to 155.85 rand at the close of business on Wednesday – the lowest since October 2012.

According to Bloomberg, MTN has lost $5.24b (N1.4tr) in market capitalisation from October 23 to 29, as the fine continued to take a toll on its value on Monday November 2.

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