Telecoms stocks climb aboard JSE train

Shares in mobile operator MTN Group (MTN) rebounded in trade on the JSE on Thursday as a number of telecoms stocks profited from the wave of positive sentiment running through the local bourse so far in 2012.

The JSE continued to trade at an all-time high on Wednesday, and in the afternoon session, the all-share index had gained 0.72% at 34,384 points.

Up to and including the close of play on Tuesday, the bourse had gained 2,153 points so far in 2012, or 6.73%.

Shares in Vodacom (VOD), MTN, and technology group Reunert (RLO), all rallied, picking up R2.54, or 2.62% to R99.39; R2.30 or 1.70% to R137.80; and R1.35 or 2.03% to R67.70 respectively shortly before 16:00 local time.

Shares in Telkom (TKG) however, moved the other way, off 60 cents or 2.02% to R29.08.

MTN had lost as much as R15 in 2012, to around R130 last week amid civil unrest in Nigeria and ongoing sanctions imposed by the west on Iran, two of the group’s largest markets in terms of customers.

An analyst at Thebe Stockbroking told BusinessTech: “There is still a lot of positive momentum in the market. Analysts had expected a pullback in momentum at some stage but that doesn’t seem to have happened. It’s like jumping in front of a moving train.

“MTN is on the rebound despite the events in Iran and Nigeria as people realise that there is nothing fundamentally wrong with the company.” He said that Vodacom offered attractive numbers, with its data growth particularly positive.

Shares in telecommunications and technology group Altech (ATN) added 48 cents to 52.80 having dipped as a much as 5% on January 23, after the group announced the departure of chief operating officer,  Jeffrey Hedberg after only six months at the group.

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Telecoms stocks climb aboard JSE train