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JSE rides Wall Street's tremor, but sent... Firmer FTSE can't quite shake the jitter...
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JSE rides Wall Street's tremor, but sentiment remains cautious
TURNOVER on the Johannesburg Stock Exchange, excluding arbitrage deals, climbed by more than half in the three months ended March 1997 against the same period last year. Trade worth R41.25-billion was concluded since the start of the year until March 27, compared with R27.2-billion in the first quarter of 1996. Market capitalisation rose by 9.3% in the first three months of this year to R1.21-trillion, and net foreign purchases totalled R3.47-billion. This week's JSE trade was marred by the 4%-plus correction on Wall Street. But there was no panic: indeed the correction was both expected and welcomed as an opportunity to buy on market weakness. The JSE all-share index made a net retreat of only 1.2% to 7 016. Market sentiment, however, remains cautious. The gold price was little changed at around $347/oz and the gold index shed 10 points to 1 291. The biggest feature was a book-over of 24-million Cons Mining at 80c. The industrial index was down 100 points at 8 239. Dealers made a hash when Baobab nil-paid letters were taken up at 133c apiece into Mustek shares. The take-up price should have been added to the letters' closing value of R12 but the price opened at R11 before picking up to R12.10. Mustek shares were issued earlier at 870c and some undoubtedly hit the market. The information technology stocks struggled generally: Didata lost 75c to R13.75 and Persetel 100c to R26.60. But Datatech added 25c to R21.25 on news that it and 15%-shareholder Primedia had each bought 24.5% stakes in VWV Interactive. Primedia, which also bought other VWV interests, added 17% to R32.20. Brokers report being inundated with enquiries for Nando's, which is to issue 25 million ordinaries at 100c on a forward price:earnings ratio of 16. Otis, which ran last week on relatively big volume ahead of a cautionary, put on another 100c to 615c. Talk is of an offer to the minority at around 700c. The market is also hoping for an offer for their Teljoy shares. There was frenzied activity in the share, 48%-held by the unbundling . ServgroTeljoy added 25c to 450c, but the market aspires to R6 or so. Talk is also that East Dagga will buy into Knights at 40c; Knights eased 1c to 36c. Tourvest lists tomorrow after a 15-for-one consolidation of M&A shares, which suggests a price of 195c although M&A retreated on Friday. Tourvest impressed with its pre-listing presentation and is likely to fly. Gentech more than halved to 30c after Powertech sold control of the cash shell at net asset value of 13.9c. Gentech is to buy Stantronic and undergo a five-for-one share consolidation. RMB Holdings leapt up 9% to R111 on good sentiment. Tigon warned of negotiations and added 80c to 1 430c and PAG firmed 90c to 690c on the sale of its placements business to Educor, which shed 47c to 435c. Julie Walker
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