{"id":32801,"date":"2013-03-05T00:46:09","date_gmt":"2013-03-04T22:46:09","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=32801"},"modified":"2013-03-05T08:34:37","modified_gmt":"2013-03-05T06:34:37","slug":"telkom-consolidates-below-r15","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/32801\/telkom-consolidates-below-r15\/","title":{"rendered":"Telkom consolidates below R15"},"content":{"rendered":"

Telkom<\/a> consolidated its position below R15 a share on Monday (4 March) as investors remain “uncomfortable” with the level of uncertainty within the group.<\/p>\n

Telkom traded at R14.93 by close of play on the JSE on Monday, having dipped back below R15 late on Friday, giving the firm a market cap of R7.78 billion. The group is also testing new lows, having hit R14.91 on December 7, 2012.<\/p>\n

Nadim Mohamed<\/a>, investment analyst and partner at First Avenue Investment Management<\/a> said: \u201cIt\u2019s the lack of direction that\u2019s causing the (Telkom) share price to trade lower.\u00a0 A few days ago, the Department of Communications announced that, together with the Telkom Board, it is still finalizing options that are to be proposed to Cabinet for consideration.”<\/p>\n

\u201cThis process commenced about five months ago and investors are uncomfortable with the level of uncertainty that this introduces to the company,\u201d he said.<\/p>\n

Government holds the majority shares in Telkom through its own 39.8% stake in the company and the 10.5% held by the\u00a0Public Investment Corporation<\/a>.<\/p>\n

Having blocked a deal between Telkom and Korea based\u00a0KT Corp<\/a>\u00a0in June last year, cabinet asked the minister of communications,\u00a0Dina Pule<\/a>, to report back to it about all the options that were available for Telkom.<\/p>\n

The\u00a0DoC<\/a>\u00a0confirmed in September that a shortlist of three strategic options for Telkom had been presented to cabinet. These options however, were sent back to the DoC following the appointment of a number of new Board members including chairman, Jabu Mabuza<\/a>.<\/p>\n

New CEO<\/strong><\/p>\n

The analyst also noted that a new CEO still needs to be appointed, as current CEO,\u00a0Nombulelo Moholi<\/a> announced her resignation in November 2012 and will leave the company in April 2013.<\/p>\n

The company is also facing an anti-competitive case against it by the Internet Service Providers’ Association (ISPA<\/a>).<\/p>\n

8ta<\/strong><\/p>\n

On Friday, Telkom announced that it was planning to rebrand\u00a08ta<\/a>\u00a0as Telkom Mobile,\u00a0but rather bizarrely, it quickly issued a separate press statement clarifying the matter.<\/p>\n

The company\u2019s\u00a08ta\u00a0brand will not be discontinued, Telkom said, explaining that \u201celements of the market, which had been serviced and marketed to under the 8ta brand, will soon be served under the Telkom Mobile brand.\u201d<\/p>\n

\u201c8ta will not be discontinued, but will be repositioned into specific market segments,\u201d the group said.<\/p>\n

Mohammed said that 8ta would remain a challenge for management, regardless of how it is packaged, as rival mobile telcos were investing heavily in converged offerings.<\/p>\n

MTN and Vodacom<\/strong><\/p>\n

With MTN<\/a>, the stock has been trading in the R175-R184 range while the market awaits its annual results on Wednesday (6 March).<\/p>\n

“For Vodacom<\/a>, the stock has lost some ground from its high of R129.88 after reporting slow growth in the SA market.\u00a0 The recent reduction in termination rates are likely to affect both operators negatively (SA operations),”\u00a0Mohamed said.<\/p>\n

On Monday, shares in Vodacom declined late in the day by R3.80 – or 3.09% – to R119, while MTN shipped as much as R5.59 – or 3.08% – to R175.66. Global pressures hit the All Share Index, closing\u00a00.72% weaker at 39,844.24 points.<\/p>\n

More Telkom news<\/h3>\n

8ta to remain<\/a><\/strong><\/p>\n

Government must sell Telkom: DA<\/a><\/strong><\/p>\n

Confusion as Telkom awaits fate<\/strong><\/a><\/p>\n

More confusion over Telkom future<\/strong><\/a><\/p>\n

Telkom future in cabinet hands<\/strong><\/a><\/p>\n

Telkom options not tabled before Cabinet<\/strong><\/a><\/p>\n

Telkom shares off 5.3%, awaits fate<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Telkom consolidated its position below R15 a share on Monday as investors remain uncomfortable with the level of uncertainty within the group.<\/p>\n","protected":false},"author":9,"featured_media":26886,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[407,1083,2160,26,1781,3757,2198,2996,65],"class_list":["post-32801","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-8ta","tag-dina-pule","tag-first-avenue-investment-management","tag-headline","tag-kt-corp","tag-nadim-mohamed","tag-nombulelo-moholi","tag-public-investment-corporation","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/32801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=32801"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/32801\/revisions"}],"predecessor-version":[{"id":32814,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/32801\/revisions\/32814"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/26886"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=32801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=32801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=32801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}