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Hive of corporate activity gives indust... Long bonds shrug off assault on critical... |
Hive of corporate activity gives industrials and JSE a fillipNEW listing Afribrand made a splash deepened by two broking firms going well short of the sweet-maker, at around 220c. Afribrand's tiny share issue was 75 times subscribed at 100c, and trade opened in the mid 220c. A cautionary was issued on Wednesday, and the price jumped to as high as 320c on the scramble to cover the short positions. Afribrand later eased to 278c. Another snacks company, Armato, climbed 16% to 650c. Development capital market listing Shocraft issued a cautionary and flew from 80c to 575c on talk that Greg Blank was to use it as a vehicle through which to list a small stockbroking firm. Other smaller firms are considering listing as a means of raising capital, and there is big demand for rated research analysts in order to boost the prospectus. Another 33 new or renewed cautionary announcements underlined corporate activity and the JSE firmed 142 points to 7 599 on strength in industrials. A rampant dollar trampled the rand as low as 470c. It opened at 463c and closed at 468c. Gold dipped back below $320/oz but firmed to $323. Platinum was strong if volatile, going up to $460, back to $430, and settling at around $440/oz. Highveld picked up 17% to R18.95 on reasonable results, better prospects and an end in sight to the commissioning problems at stainless steel arm Columbus: debt should bottom out at R800-million. Chemical giant Dow intends an takeout of Sentrachem at R10.50 and Sentrachem responded with a 31% rise to R10.35. One dealer expressed surprise at reports that Sankorp was urging minorities to accept: "What does it have to do with Sankorp? It's messed up in and Sentrachem and nMurray & Robertso wonder it wants out. But Dow isn't coming here to run Sentrachem down, and minorities should make up their own minds." Capestar Growth Investments, formerly Tej, added a third to R24, but there were signs of flagging in Multisource. A last-minute trade of 100 shares lifted the price by 8% to R14.60 but it was still 240c down on the week. Don shot from 104c to 180c and back to 140c on talk of a deal. Sterling also jumped 64% to 41c on a takeover by Malaysian group Bengoshi at 25c. But fingers were burnt in Daewoo, which disputes the payment of ad valorem duty and warned of problems. It shed 37% to 180c. M-Cell added 96c to 750c and in the same sector, Grinaker made up some of the discount to true value on the back of the Persetel takeover of Q Data. Grinaker added 15% to 900c, and AVI said it may sell its holding to Kunene Bros and management. Among financials, Coronation firmed after the rights issue closed, and Trencor and Mobile also rose on Coronation's stated recommitment to the Mobile joint venture. BOE collected R20 to R170, and Fedsure 250c to R56 on results which disguise only modest growth in premium income. Usko also soared: talk is that it will buy Seartec. Julie Walker
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