Vodacom shares slip on profit taking
Vodacom’s shares shaved R3.21 or 2.53% off its value in afternoon trade on the JSE on Wednesday (9 January) as a result of profit taking according to a local dealer.
Having reached a high of R129.83 on Friday (4 January), Vodacom has dropped to an intraday worst level of R122.51 on Wednesday. By 15h15 local time, shares in the group moved to R123.55.
However, shares in the group have risen from a price of R89.45 over the past year alone, and the price is also up from a low of R116.55 in the past month.
The dealer said: “It looks like a case of profit taking. It (Vodacom) has run hard recently. Fund managers back from holiday have had a look at what looks to be inflated prices and are looking to take some profit off the table.”
Vodacom achieved a record best level of R129.83 on 30 December 2012.
Earlier this week, an analyst told Business Tech that Vodacom still has the potential to reach R150 on the local market amid an attractive dividend yield and announced plans for Africa.
In 2012, Vodacom CEO, Shameel Joosub, said that the group would renew its interest in Africa. Joosub said the group had “cracked the Africa model” and was ready for a more aggressive assault on the continent.
Vodacom’s chief said that Vodacom would adopt a two-pronged approach in Africa, namely to continue to drive further penetration within the markets it is currently in, and seek new opportunities “more proactively” outside its current operations.
Vodacom already has more than 50 million customers in Tanzania, Lesotho, Mozambique, and the Democratic Republic of the Congo.
The group also became the first operator in South Africa to launch a commercial Long Term Evolution (LTE) service, having switched on its LTE network on 10 October 2012.
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