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.