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Johannesburg - South African stocks closed lower on Thursday for the first time in four days, with the Top 40 - (Tradeable) [JSE:J200] index falling more than 1%, dragged down by blue-chip telecoms firm MTN and gold miners.
MTN Group [JSE:MTN] Africa’s biggest mobile operator, plunged 5.4% to R132.06 rand, extending losses to 8% this year, amid fears that US and European sanctions will hit the economy of Iran, one of its key non-African markets.
An announcement that it would spend $1bn in 2012 in Nigeria, its biggest market, and the licensing of a rival operator in Cameroon also dampened sentiment towards the stock, said Bruno van Eck, a trader at Thebe Stockbroking.
“It is one of the biggest stocks on the market, so it is obviously pushing the market into negative territory,” he said.
Valued at $32.5bn, MTN is the fourth-largest company on the Johannesburg Stock Exchange.
The bourse’s benchmark index edged 1.05% lower to 29 058.39, while the broader All Share[JSE:J203] index fell 0.91% to 32 599.06.
Spot gold’s fall from a high of $1 625.36 to as low as $1,596.24 on the day also made miners such as Harmony and Gold Fields less desirable.
“The gold price has slipped below $1600. So definitely we’ve seen some negativity coming in on metal prices. Platinum prices are stepping down and copper prices have taken a hit,” van Eck said.
The blue-chip index failed to break above the 29 400 level on Wednesday, the latest in several attempts at the psychologically important level since October.
Analysts expect it to make a short-term retreat to 29 000 with support at 28 500.
MTN Group [JSE:MTN] Africa’s biggest mobile operator, plunged 5.4% to R132.06 rand, extending losses to 8% this year, amid fears that US and European sanctions will hit the economy of Iran, one of its key non-African markets.
An announcement that it would spend $1bn in 2012 in Nigeria, its biggest market, and the licensing of a rival operator in Cameroon also dampened sentiment towards the stock, said Bruno van Eck, a trader at Thebe Stockbroking.
“It is one of the biggest stocks on the market, so it is obviously pushing the market into negative territory,” he said.
Valued at $32.5bn, MTN is the fourth-largest company on the Johannesburg Stock Exchange.
The bourse’s benchmark index edged 1.05% lower to 29 058.39, while the broader All Share[JSE:J203] index fell 0.91% to 32 599.06.
Spot gold’s fall from a high of $1 625.36 to as low as $1,596.24 on the day also made miners such as Harmony and Gold Fields less desirable.
“The gold price has slipped below $1600. So definitely we’ve seen some negativity coming in on metal prices. Platinum prices are stepping down and copper prices have taken a hit,” van Eck said.
The blue-chip index failed to break above the 29 400 level on Wednesday, the latest in several attempts at the psychologically important level since October.
Analysts expect it to make a short-term retreat to 29 000 with support at 28 500.
