* Top-40 down 0.29 pct to 30,442.16
* All-Share falls 0.28 pct to 34,112.44
JOHANNESBURG Feb 14 (Reuters) – South African stocks
ended 0.29 percent lower on Tuesday, undermined by investors
banking profits for resource companies such as Anglo American
.
Telkom declined 2.7 percent to 27.45 rand after the
competition regulator asked that the fixed-line operator be
fined 3.5 billion rand ($454 million) for excessive pricing
dating back to 2004.
The Competition Tribunal, which adjudicates on such
complaints, is currently hearing arguments from both Telkom and
the Competition Commission, South Africa’s anti-trust regulator.
“We’ve never liked Telkom. It’s been very, very
disappointing. I don’t think they can get their model right just
yet. Maybe there might be a buying opportunity later on,” said
Michael Carlsson, a trader at Consilium Capital.
“They’ve got big competition with technology coming forward.
They are too late in terms of catching up with the MTNs and
Vodacoms,” he said, referring to rival mobile phone operators.
Telkom said the fine would be “catastrophic” and could
jeopardise its business. Shares in rival Vodacom gained
more than 2 percent to 103.50 rand.
The Top-40 index lost 0.29 percent to 30,442.16,
mirroring a 0.28 percent drop by the All-Share to
34,112.44.
Continued…
