Telkom (TKG) Rockets 55% on JSE After R6.75B Deal—R40 in Sight?

Telkom’s stock just went stratospheric—a 55% surge on the JSE following a R6.75 billion deal. Traders are now eyeing R40 as the next psychological barrier. Will it break through, or is this another case of ’buy the rumor, sell the news’?

The telecom giant’s sudden rally has analysts scrambling. Some call it a re-rating; others whisper ’overbought.’ Either way, the charts don’t lie—this is the kind of volatility that makes hedge funds salivate and retail investors panic.

Funny how a single deal can make a stock outperform Bitcoin for a day. Welcome to the JSE, where fundamentals occasionally matter—until they don’t.

Q3 FY2025 Snapshot: Operational Momentum Builds

For the quarter ended December 31, 2024, Telkom posted:

• Net Income: R1.07 billion (+18.1% QoQ)

• EBITDA: R8.67 billion

• Net Margin: 3.51%

• Debt-to-Equity: 50.9%

• ROE: 12.11%

• ROA: 6.97%

These figures reflect expanding profitability from mobile and fiber segments alongside efficient capital reallocation from asset disposals. The company’s FY2025 results, due June 10, will offer deeper insight into post-sale performance and reinvestment strategies.

Technical Setup: Momentum Builds Above ZAC 3,803

Telkom’s share price is trading at ZAC 3,860, up 54.6% YoY, after breaking above ZAC 3,803 resistance in a well-defined ascending channel. The breakout was confirmed by a bullish marubozu candle, and the 50-day EMA (ZAC 3,737) is still support.

MACD is positive with no divergence. If the price holds above ZAC 3,882, the way is open to ZAC 3,952, then ZAC 4,014.

Trade Setup:

• Buy Entry: Close above ZAC 3,882

• Targets: ZAC 3,952 and ZAC 4,014

• Stop-Loss: Below ZAC 3,736

Traders should monitor volume for confirmation and avoid chasing if the breakout stalls NEAR resistance.

Conclusion: Strategic Clarity and Technical Strength Align

Watch volume for confirmation and don’t chase if the breakout stalls at resistance. With a clean balance sheet, growing earnings and good technicals, Telkom is up for more.

The market has endorsed its asset-light strategy and if this momentum continues Telkom will be South Africa’s digital backbone and deliver value to shareholders through execution and re-investment.