Mobile phone firms lead South African stocks lower

JOHANNESBURG (Reuters) - South African stocks ended slightly lower on Wednesday as mobile phone firms pushed the bourse down after Vodacom's quarterly earnings failed to excite.

Sentiment was also dented by weakness in major global equity markets ahead of the European Central Bank's verdict on interest rates.

The JSE Top-40 index lost 0.34 percent to 36,156.66 and the broader All-share index slipped 0.25 percent to 40,559.67.

"The market does look a little bit full at these levels. Without a real catalyst, I expect it to consolidate around these levels for while," said Rudi van der Merwe, a trader at Standard Bank Stockbroking.

Vodacom shares slid after it reported a modest 1.7 percent rise in quarterly sales, which suggested that debt-laden consumers were spending warily.

Vodacom, the nation's biggest mobile phone firm, fell 4.24 percent to 116.20 rand, topping the decliners' list and dragging down its closest rival MTN Group, which skidded 3 percent to 178.15 rand.

Elsewhere, Sappi plunged to record low of 28.50 rand after the paper maker suffered a more than 60 percent drop in quarterly profit.

The stock eventually closed 5.72 percent in the red at 29.27 rand.

Major retailers rose for the second straight day after brokerage house Absa Capital gave an upbeat assessment on the sector that has been under heavy selling pressure in the last month.

Grocer Shoprite gained 1.45 percent to 176.50 rand and clothes retailer Truworths added 0.81 percent to 106.30 rand.

Investors have been offloading retailers in recent weeks after a year-long rally that many analysts have said pushed their shares to levels from which they can only disappoint.

Elsewhere, Cipla Medpro hit a record high for the second straight day as investors bet its Indian suitor Cipla Ltd would raise its $215 million offer for the generic drug firm.

Provisional bourse statistics showed a slightly below average 173 million shares were traded, with 155 shares advancing and 158 losing ground while 60 shares were unchanged.

Source: http://news.yahoo.com/mobile-phone-firms-lead-south-african-stocks-lower-154730223--finance.html

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