JSE down, investors hung up over Telkom
By: Reuters
2012-02-14 18:29
Johannesburg - South African stocks
ended 0.29% lower on Tuesday, undermined by investors
banking profits for resource companies such as Anglo American
.
Telkom declined 2.7% to R27.45 after the
competition regulator asked that the fixed-line operator be
fined R3.5bn ($454m) for excessive pricing
dating back to 2004.
The Competition Tribunal, which adjudicates on such
complaints, is currently hearing arguments from both Telkom and
the Competition Commission, South Africa's anti-trust regulator.
"We've never liked Telkom. It's been very, very
disappointing. I don't think they can get their model right just
yet. Maybe there might be a buying opportunity later on," said
Michael Carlsson, a trader at Consilium Capital.
"They've got big competition with technology coming forward.
They are too late in terms of catching up with the MTNs and
Vodacoms," he said, referring to rival mobile phone operators.
Telkom said the fine would be "catastrophic" and could
jeopardise its business. Shares in rival Vodacom gained
more than 2% to R103.50.
The Top 40 - (Tradeable) [JSE:J200] index lost 0.29% to 30 442.16,
mirroring a 0.28% drop by the All Share [JSE:J200] to
34 112.44.
Johannesburg-traded shares of global miner Anglo American
retreated 1.95% to R335.60, giving up some of their 3% rise from the previous session.
On the gainers side, papermaker Mondi jumped 3.7% to R67.43 after flagging a probable 53% jump
in full-year earnings.
News that an arbitration court's ruling had cleared the way
for Mondi's Polish unit to acquire local energy company also
cheered stock-holders.
Trade volume was thin, with preliminary data showing 190
million shares changing hands, well below the average 256
million shares that traded daily in 2011.
Decliners outnumbered advancers 137 to 128, while 84 shares
were unchanged.
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