Johannesburg - South African stocks rebounded on
Wednesday after their heaviest one-day loss in over three months in the previous
session, led by Africa’s biggest telecoms group, MTN Group [JSE:MTN], which cheered
investors by jacking up its dividend cover.
More broadly, the Johannesburg bourse shrugged off a one-day
nationwide strike led by union umbrella group Cosatu that brought some gold
mines to a standstill.
European shares steadied after two days of losses and the euro
recovered from a three-week low as markets awaited the outcome of a Greek debt
restructuring deal.
Johannesburg’s benchmark blue-chip Top 40 - (Tradeable) [JSE:J200] index added 0.71%
to 29 822.39, while the broader All Share [JSE:J203] index rose 0.61% to 33 592.32.
MTN was in the spotlight, climbing 3% as investors welcomed
a promise to pay 70% of its earnings as a dividend, up from 65%
after a 43% jump in full-year profit.
However, the company also said it was struggling to get money out
of Iran due to tougher Western sanctions. Despite the problems, the Iran
business has been a moneyspinner for MTN, said Credit Suisse analyst Richard
Barker.
“That business just goes from strength to strength. That’s the
ironic thing. It’s probably been their strongest performing business over the
last couple of years,” he said.
Miners recovered in line with metal prices after sharp falls in the
previous session.
Lonmin, the world’s third-largest platinum producer which was the
worst performer among Johannesburg blue chips last year, rose 1.46%,
clawing back some of the ground it lost on Tuesday when it slid more than 5%.
Platinum producers were largely unaffected by the nationwide stayaway that hit sectors across the economy, including gold and coal miners.
But gold mining shares rose as bullion prices snapped three days of
losses. AngloGold Ashanti, the top producer of the precious metal, jumped 1.80% to R305.69 while rival Harmony Gold ended up about 1%.
Advancers outnumbers decliners 159 to 125, with 68 unchanged.