Stock-watch: Telkom under pressure

Telkom made minor gains in midday trade on Friday (29 June) having slumped to an all-time low at close on the JSE on Thursday (28 June).

The JSE gained 0.66% to 33,473 points, having slid to a three-week low at close on Thursday.

Telkom was 1.22%, or 23 cents, to the good by 13:00 on the JSE, having lost 90 cents‚ or 4.57%, to R18.80 – a fresh all-time closing low on Thursday.

The group revealed a 1.2% increase on overall basic voice and data services as part of its 2012 annual tariff adjustment, noting that it is below the Consumer Price Index.

The adjustments, which will come into effect on 1 August 2012, apply to Telkom’s tariffs for line rentals, outgoing calls, DSL and data connectivity services.

Naspers was also a big loser on Thursday, dropping more than R22 with a dealer noting that the company was a victim of general negative sentiment in the market. He added that TenCent, in which Naspers has a substantial holding, also declined as Chinese stocks fell on Thursday.

On Friday, shares in Naspers gained 93 cents to R439.20 on the JSE.

On Wednesday, Naspers reported a 19% rise in consolidated revenues for the year ended March 2012, to R39.5 billion, buoyed by its internet businesses, where revenues jumped 59%.

Operating profit however, declined to R3.202 billion from R4.056 billion, due mainly to accelerated consolidated development costs which ballooned to R2.8 billion from R1.5 billion in 2011.

Total core headline earnings were R6.9 billion – an increase of 15% on the prior year. It reported a 16% rise in fully diluted headline earnings per share to R12.54 for the year ended March 2012‚ from R10.82 a year ago.

In other tech stocks, shares in Vodacom was flat, at R92.66, having slipped 1.71% on Thursday, while MTN dropped R1.76 or 1.26% to R138.24, having shipped 1.75% on Thursday.

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Stock-watch: Telkom under pressure