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Rising industrials, volatile golds give... |
Rising industrials, volatile golds give benchmark index a boostRISING industrials, volatile golds and mixed financials combined to lift the JSE all-share index 20 points to 7 444 in a week dominated by the bond market. Shares of selected banks strengthened, notably Absa, up almost 5% to R34.50 after a successful offshore capital-raising exercise of $138-million for the issue of only 20-million shares. First National edged up 80c to R40, Investec 275c to R185, Gensec 250c to R71.25 and RMB Holdings 40c to R13. But some of the niche financials took a knock, notably Coronation. The ordinaries shed 6% to R91.25 and N shares nearly 5% to R79. R1-billion of equity is currently being raised through the issue of N shares at R73.75. Coronation management commented that it had invested in some underperforming gold assets; the smart money bets that the group will continue to perform. This week it raised $50-million for offshore expansion. Captall also took a hit on enormous volume, down 8% to R36 after touching R34 earlier. Netcare was volatile after consummating the Clinics takeover. From 262c in May and a 170c low two weeks ago, it rose 25c to 225c before retreating to 206c. It must hinder the pricing of the pending giant rights issue although the deal technically values Netcare above 225c. Gold mines made news; an earth tremor at Avgold's Harties mine cost lives and will hamper production; Avgold shed 10% to 404c. East Rand Proprietary Mines announced a possible closure and also shed 10% to 101c. Western Areas announced a gold repurchase at well below the original hedging price, but shed 50c to R31. Amalia picked up 20c to 146c on announcing that Wits University is to help it investigate Liberia. However, the local Amalia mine's problems don't get the same prominence: directors confirm that the mine manager is being replaced, some of the labour force laid off and that there have been production problems. A corporate restructure is to be announced. Certain industrials bucked up. Klipton added 40c to 340c on the sale of Castor & Ladder for R9.3-million. Klipton is now a focused safety and security company. Plessey edged back above R10 on its participation in the Lucent contract with Telkom, and Altech jumped 27% to R126.50, also on the Telkom deal. Altech has almost trebled since January.
After months in the doldrums, stores firmed, notably Metcash, McCarthy, Pick 'n Pay and Pepkor. Karos jumped 38% to 166c on a cautionary: talk is that the major stake has been sold to Omar Sharif. But Rainbow instantly shed 40% to 50c after announcing yet more problems: this time, the chicken price is too low. Carrig jumped by a third to 100c; it is to pass 90% of the proceeds of selling Rexcor on to shareholders, and become a cash shell with a view to investing in information, communications and entertainment. Tej, another cash shell, climbed 37% to R19 on a warning.
Julie Walker
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