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Dismally thin week closes with earnings ... |
Dismally thin week closes with earnings lower than expectedTHE JSE closed a dismal week of thinnish volume on worse-than-expected earnings - other than for financials. The all-share index gave up 1% to 7 702 as negative sentiment swept index and other stocks alike. The industrial index retreated 109 points or 1.3% to 8 312, and the gold index gave up 3% to 1 192 on a $2/oz net drop in the gold price to $342.55/oz The rand gained around half a cent to just better than 447c to the dollar: pressure was eased on the view that foreign capital on one or two deals is beginning to enter the system. In the financial sector, BoE made the running on a cautionary issued jointly with Samrand, Boland, NBS and Pepgro. BoE ordinaries picked up 5.6% to R150 and Boecorp N rose by 36% to 950c. Boland crept 125c firmer to R62. Samgro added 600c to R21. Blue-ribbon results were delivered again by Investec. Even though the share had a good run-up in the fortnight preceding results, it still added nearly another R10 to R159.25 a share. Saambou also did well, climbing 10% to 885c. Southern Life lifted earnings by the predictable level but the market seemed highly dissatisfied and voted with its feet: Southern shed 12% to R39.60. Momentum gained 11% to 600c, but the biggest oscillations were left to Tigon. It started the week at 750c, fell to as low as 310c then recovered to 550c after admitting to reporting an unrealised profit in its latest financials. Yorkcor was also volatile: in a single week it moved from 300c to 152c (on withdrawing a cautionary) then back up 32% to 200c on two tiny deals totalling 2 200 shares on Friday. The spread at the close was 140c buyers, 284c sellers - a reflection of the negligible trading volume. Baobab was strong, adding 500c to R33: the market clearly expects something. In the electronics sector Mustek, which was recently listed completely out of Baobab, picked up 11% to R14.50. Jobbers' favourite Chariot soared to as high as 122c the day before it issued a cautionary expressing interest in buying Federal Mogul. When details were announced on Friday, the price came back to 108c. Federal Mogul has been bought for R130-million, a R24-million discount to tangible net asset value. Chariot will issue 138-million shares in consideration.
Moregro's earnings were better than expected and the price added 140c to 775c. Tightly-held Cadswep added 550c to R90.50 after announcing a proposed 10 for one share split. Lenco rose 80c to 700c on a cautionary.
Among mining stocks, Duiker had a sharp rerating upwards, from 820c to R11 and its parent Tweefontein from R130 to R160, on a cautionary that their prices might be affected by the propsed Lonrho-JCI merger. Lonrho added 6% to R10.60, but JCI slipped 150c to R41.30. In active trade Cons Mining added 3c to 89c on talk that its next step is imminent, and ERPM gained 10c to 180c on a cautionary. Julie Walker
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