So to MTN quickly. The company stuck out a SENS message, as we said, that had a marked impact on their share price. The stock surged 9.21 percent on the day, yet there hasn't been much to cheer about this year, the stock is still down over 7 percent year to date and nearly 40 percent lower over the last 12 months. The stock reached a 52 week low of just over 113 Rand a share last week, which meant that Vodacom had, with one quarter of a subscriber base, a bigger market capitalisation. For obvious reasons we know why the MTN share price has fallen, the company has been under the pump for the pending fine in Nigeria. A little bit of "good" news, the market interpreting this announcement that way. So here is a copy paste, titled Further update on the fine imposed on MTN Nigeria:
"The above-mentioned matter came up for hearing before the Federal High Court in Lagos, Nigeria this morning, Friday, 22 January 2016. The judge adjourned the matter to 18 March 2016 in order to enable the parties to try and settle the matter. If the parties are unable to reach a settlement the matter will then proceed on that date."
The market interpreted that it may be favourable for MTN if the courts are telling them to settle. One way or another. I guess as they say in the classics, we will have to wait and see. Obviously the soaring (all relative) oil price would be beneficial, MTN of course operate in territories of large oil exporters, namely Nigeria and Iran. We continue to watch and believe that the fine imposed may be reduced once everyone deliberates with cool heads.