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Gold's slide has a knock-on effect in we... |
Gold's slide has a knock-on effect in week of slow tradeTHE knocking down of gold sliced 10% off the all-gold index in a single week. The index had climbed by 16% during February, so many bulls got roasted. The gold index closed at 1 417, bringing the all-share index 83 points lower to 7 062. Volumes were much thinner than of late - the Budget is to be delivered this week and there is always more talk than action ahead of what might be announced. However, London investment house UBS said it was upgrading the SA equity market ahead of the Budget from an underweight to an overweight position. It expects an interest-rate rate cut in the second quarter. Yet market sentiment dipped on continued news of mounting debts arising from non-payment for goods and services. Bond rates crept higher - the yield on the R150 moved above 15%; only a fortnight ago it was 14.445% The rand held reasonably steady against the dollar at 446c, and firmed a shade against other currencies.
Randgold, R40 a week or so ago, endured some negative publicity until cleared of accusations that its management had leaked market-sensitive information in London about the coming listing of Randgold Resources. Randgold shed 8% to R34.75, and Cons Mining, whose portfolio holds Randgold, lost 11% to 101c.
SouthWits bucked the trend, moving from 15c to a year's high of 27c before retreating to 21c. The company is involved in a legal battle for control of its only asset, the Black Wattle Colliery. Benguela Concessions bought 11.6% of Diamond Fields International and added 30c to 595c. Among industrials, Toco had an active week, moving from 87c to 127c and back to 100c. Talk varies from the management's being replaced, to a takeover (denied) by Bidvest's Brian Joffe. Sasani retreated after buying Movie Camera Co for R67-million, partly settled through the issue of shares at 70c. It lost 18c to 138c. Math Ash, the vehicle for the listing of Tourvest, climbed 50% to 30c - about 15 times its net worth. Micor, which is to sell certain businesses into Tourvest, picked up 100c to 800c. Integrated wood products group Megacor was listed midweek, opening at 240c and closing at 220c - 10% above the issue price - in nice volume. Educor issued a cautionary on top of good results, but slipped 3c to 425c. Housewares, from whence Educor was issued last year, gave up a net 20c to 250c after a humbling profit-warning. Rebhold reported earnings up 50% and warned of more negotiations, but succumbed to some profit-taking after more than doubling this year. It eased 40c to 610c. Softline bought the business of Personal Computer Importers, warned of more negotiations and lost 6c to 210c. Advtech announced acquisitions to be settled mainly in N-shares of 260c and warned of negotiations. It hit 500c and closed at 480c, 20% up on the week. Log-Tek warned of negotiations and added 60c to 620c. Citizen Bank, which announced it is to raise R100-million in secondary capital and be renamed FBC Holdings, added 50c to 800c. Julie Walker Top of page
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