MTN’s share price has declined 7% since the beginning of 2017 and opinion is divided over whether it will rebound to the levels last seen before the fourth quarter of 2015. The group has suffered big losses since October 2015 after the Nigerian government imposed a multibillion-rand fine on the company. At that time, its share price was trading at about R180. Nigeria is the network provider’s biggest market. MTN’s stock performance has been worse than the JSE’s telecommunications index, which is down 5.34% since January. The sector, which includes Vodacom, Telkom and Blue Label Telecoms, ended 2016 2.78% down. MTN is set to report its first full-year loss in March largely due to the fine. The expected losses have resulted in the group trading at a negative price-to-earnings ratio. Graeme Korner, portfolio manager at Korner Perspective, said while MTN appeared more driven to gain market share, at least in SA, there were significant challenges. For the share price to rebound there wou...
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