EV­ERY­THING’S CON­NECTED

Finweek English Edition - - SIMON SAYS -

A strange thing was hap­pen­ing with MTN* last week as the stock slipped almost 5% in one trad­ing day with no news. It seems to be that with oil prices plum­met­ing, this has seen the Nige­rian naira weaken. And with Nige­ria be­ing MTN’s largest profit gen­er­a­tor at EBITDA level, this hurts prof­its in rand and so MTN got sold off. The naira re­cov­ered quickly enough, but it does i l lus­trate the num­ber of dif­fer­ent mov­ing parts that in­flu­ence global company prof­its.

*The writer owns shares in MTN.

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