The price of shares in Africa's largest cellular operator, MTN, has moved downwards since the middle of the month.
Stock in the company has moved down from R124.54, on 18 March, to close yesterday at R115.20. This morning, the share was trading at R113.
However, the company's stock is still trading above its 52-week low of R101.42, which was seen on 22 April 2009.
Irnest Kaplan, MD of Kaplan Equity Analysts, says the move does indicate a negative market reaction to the share, but could be based on a variety of reasons.
He explains the share has moved up strongly since January, and the current fluctuation could be a market correction. It could also be because March is when portfolio managers adjust their holdings, and some may have sold their stake.
In addition, concerns over the rand's continued strength could result in some people selling out. Should the rand remain strong, explains Kaplan, earnings from Nigeria will be lower when reported in the South African currency than in reality.
He says the movement is unlikely to indicate anything sinister.
MTN's peer, Vodacom, has also lost some ground during the same period, but not to the same extent as MTN. Vodacom's share closed at R57.10 on 19 March and ended yesterday at R55.
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