South African telecommunications company MTN recognized a 6% increase in its shares, after the official announcement of the win by Muhammadu Buhari on Wednesday.
Even though the Johannesburg Stock Exchange (JSE) didn’t show any significant price movements in general, there was one stock that increased by nearly 6%: MTN Group Ltd. As it seems, investors were closely monitoring the development of the elections in Africa’s most populous country with great attention. The news that Buhari was officially announced as the new president and the fact that anticipated riots were hold off, are a sign that the outcome of the elections is positively reflected by international observers.
According to Reuters, Nigeria is MTN’s most important country in terms of revenue and subscribers, explaining the positive stock movement after the announcement. It also shows that international investors were fearing riots resulting in a political instability of Nigeria.
MTN Nigeria owns the title of market leader of the Nigerian telecommunications market, having generated N824.8 billion in revenues in 2014, while attracting a subscriber base of 59.8 million people. All those numbers were released beginning of March with the publication of MTN Group’s annual financial report.