MTN shares lower on fresh allegations

STOCKS ended slightly lower with MTN Group among the biggest decliners on allegations, which MTN denied, that the mobile phone group illegally moved at least $14 billion (about R194.2bn) out of Nigeria.

The JSE Top40 index lost 0.16 percent at 44 865.96 points and the broader all share index was down by the same margin to 51 420.66 points.

MTN slid as much as 3.2 percent in the session to levels last seen more than six years ago before recouping some of the losses to close 2.25 percent lower at R107.50.

Speaking at the start of parliamentary hearing to investigate accusations that MTN transferred the money out of Nigeria, senator Olusola Adeyeye called the amount which MTN is alleged to have repatriated “mind boggling”.

“There’s a lot of nervousness around that, that’s done the damage before and it just looks like it’s continuing,” said Independent Securities trader Ryan Woods.

Mining firms also weighed on the bourse, with Impala Platinum down 3.37 percent to R54.50, Sibanye Gold 1.49 percent lower at R42.33 and AngloGold Ashanti 1.42 percent weaker at R194.50.

Trading volumes on the bourse were low with about 186 million shares changing hands.