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Telecom shares slide

Jan 07 2010 17:52 Gareth Vorster

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Johannesburg - Telecommuncation stocks have suffered on the local market on Thursday.

Africa's largest mobile operator MTN lost 2.39 percent to R108.10, peer Vodacom dropped 3.05 percent to R54.01, while the country's dominant fixed line operator Telkom shed 2.86 percent to R34. The JSE telecoms index dropped 2.41 percent.

"(The local market) came off quite sharply at the end with the Dow coming off very sharply while we were on auction. I think the bad news in the market was obviously the telecoms," said Michael Carlsson, a portfolio manager at Consilium Capital.

"I certainly would expect some breather in the market. We have had some uptrend since the beginning of the year."

Naspers slipped 1.99 percent to R295, while Liberty Holding was the biggest loser, sliding 3.36 percent to R66.11.

However, South Africa's fifth-largest bank Investec Bank, bucked the trend and was the top performer, gaining 2.19 percent to R56.

The majority of blue-chip mining shares also ended in positive territory with the JSE Mining index putting on 0.14 percent.

Platinum miner Lonmin and Exxaro Resources rose 1.53 percent to R246 and R106.50 respectively. Kumba Iron Ore rose 1.51 percent to R318.75.

- Reuters

 
 
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