News Column

Market Report

May 30, 2014

stocks ended largely flat yesterday although shares of fixed-line telecoms company Telkom jumped after it said it expected to post a nine-fold increase in 2013 earnings.

Telkom shares jumped 6.04 percent to R38.60 after it forecast a surge in earnings following an aggressive turnaround strategy that included cost-cutting measures.

"That is what the market has been waiting for, for years. If management is actually delivering on (the cuts) then the market is really going to like it," said Reuben Beelders, portfolio manager at Gryphon Asset Management.

Shares of mobile communications company Vodacom jumped 3.2 percent to R132.

On the flip side, resources extended Wednesday's declines, led by Harmony Gold and Gold Fields, which fell after bullion prices hit 16-week lows.

Harmony fell 3.8 percent to R27.72 while Gold Fields shed 3.02 percent to R36.90.

The All Share index edged up 0.07 percent to 49 726.64, while the benchmark Top-40 index crept up just 0.03 percent to 44 744.80.

Trade was relatively brisk, with 132 million shares changing hands. Advancers outnumbered decliners by 161 to 146. - Reuters

Cape Argus

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Source: Cape Argus (South Africa)

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