Africa's largest cellular operator MTN saw its shares close 3% down yesterday, as sabre-rattling between Iran, the US and Europe escalated.
Reuters reported that the West has been imposing sanctions as a result of Iran's nuclear programme, which the Iranian government says is peaceful.
Iran is MTN's second-largest operation after Nigeria, and it had 33.3 million subscribers at the end of September.
On Tuesday, Iran threatened to take action if the US Navy moved an aircraft carrier into the Gulf, said Reuters. The wire service noted this was the country's “most aggressive statement yet, after weeks of sabre-rattling, as new US and EU financial sanctions take a toll on its economy”.
The ongoing issues caused MTN's share price to lose 3% yesterday, to close at R139.61, a R4.32 decline. The JSE's All Share Index, the main measure used to track the bourse's performance, closed 0.4% higher.
MTN's share hit a 52-week high on 5 July last year, when it closed at R146.94. Its 52-week low was on 24 February, when the stock ended the day at R119.69.
Reuters reported the new sanctions could affect Iran's oil trade, which accounts for 60% of its economy. US president Barack Obama signed new sanctions into effect on New Year's Eve, and the EU is expected to impose new sanctions by the end of this month, the wire service stated.
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