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Johannesburg - South African stocks ended a touch lower on Tuesday, in line with major overseas markets ahead of the US Federal Reserve's policy meeting, with Telkom [JSE:TKG] among the worst performers as doubts crept in about its turnaround plan.
Telkom dropped 4.7% to R55.50, extending its sharp decline to a second day and paring a two-fold increase notched up so far this year.
The fixed-line operator is in a middle of a turnaround plan that includes job cuts and a deal with MTN [JSE:MTN] to share networks.
But doubts are emerging on both strategic moves after Telkom suspended the job cuts initiative to consult with unions and after rival Cell C said it would fight the network sharing deal before competition authorities.
"The deal is important for Telkom in its drive to reduce the costs of running the mobile arm but if there are doubts, I'd expect the share price to take some kind of a knock," said Sibonginkosi Nyanga, an analyst at Imara SP Reid.
Overall, traders were on the edge as the US Federal Reserve begins a two day policy meeting which may give clues on the timing of the first rate hike in more than eight years.
The JSE Top-40 index was down 0.3% at 45 884 points and the broader All-share index fell 0.4% to 51 178.
Other fallers included Advtech Ltd, which dropped 5.6% to R8.45, after the private school operator unveiled a more than R700m ($63.87m) purchase of three academies.
Banks topped the list of risers with Standard Bank, Nedbank and FirstRand rising between 1.7% and 2.1%.
Trade was active with 193 million shares changing hands, according to preliminary statistics. Share prices of 117 companies advanced and those of 186 fell.
