Shares in MTN and Vodacom declined for a second straight day on Thursday (12 July 2012) amid profit taking, while political news in the case of MTN, and the announced resignation of Pieter Uys in Vodacom\u2019s case, also weighed.<\/p>\n
In midday trade on the JSE, shares in MTN slipped R1.92, or 1.32% lower, to R143, while Vodacom shed R1.29, or 1.35%, to R94.46, having lost R2.75\u201a or 2.79%\u201a to R95.75 on Wednesday (12 July).<\/p>\n
The All Share Index surrendered 0.41% to 33,587 points.<\/p>\n
A dealer at PSG Konsult told BusinessTech: \u201cThe JSE is red across the board, but in the case of MTN, the group has run pretty well over the past few weeks, extending its gains from R138 to R145. It looks like guys are getting out at these levels.\u201d<\/p>\n
The dealer also noted the political uncertainty surrounding MTN, namely that South Africa\u2019s foreign ministry has suspended a former ambassador to Tehran after allegations he took a $200,000 bribe to help MTN Group win a mobile licence in Iran.<\/p>\n
Department of international relations and co-operation spokesman, Clayson Monyela told Talk Radio 702 that Yusuf Saloojee, currently ambassador to Oman, had been suspended until investigations into his links to the MTN deal are concluded.<\/p>\n
\u201cIf you take out political risk, MTN is a R160 share, and a must-have for one\u2019s portfolio,\u201d the dealer said. Shares in MTN were still well up from a month ago figure of R134.62, while the group hit its year best total of R146.50 on Monday (10 July). MTN boasts a market cap of R269.5 billion.<\/p>\n
In the case of Vodacom, the dealer said that the announced resignation of Pieter Uys was not helping the group\u2019s share price.<\/p>\n
Uys led Vodacom\u2019s debut listing on the Johannesburg Stock\u00a0Exchange, achieving a shareholder return of 96% since listing. He is to be replaced by Shameel Joosub, the company announced today (5 July 2012). Joosub is the current CEO of Vodafone Spain, and previously served as the MD of Vodacom.<\/p>\n
Shares in Vodacom have declined from R98.14 on 12 June, and from a monthly best of R98.50 recorded on 5 July. It is also some way off its year best price of R108.50 reached in early April.<\/p>\n
Vodacom has a market cap of R140.56 billion.<\/p>\n
Shares in Telkom, meanwhile continued to hover at levels last recorded a decade ago, at R18.13, off an additional 14 cents on the day.<\/p>\n
Relates article<\/strong><\/p>\n MTN-linked ambassador suspended<\/a><\/strong><\/p>\n Why Pieter Uys is leaving Vodacom<\/a><\/strong><\/p>\n