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Activity in financial services sector se... |
Activity in financial services sector sets up a volatile weekVOLUME and volatility characterised the JSE this week, although the Budget had virtually no impact on the market. The JSE All-share index picked up 4.1% to 7 205 on the back of great activity in the financial services and insurance sector. The financial index added 4.5% to 13 209, but it was not all one-way movement; the financial index was up and down on big volume depending on the weather. Southern and First National had big jumps from their pre-suspension prices to R62.30 and R61.80 respectively after terms for their takeout and delisting were announced. Holders of 100 of each of these counters will be issued with 675 Momentum shares. Momentum dropped 100c to 990c to bring the ratios closer into line. There was an asset swap in First National worth R17-million on R77-million of trade on Friday. Liberty and Standard also announced they could get closer; anticipation of good results from Liberty helped the share climb from R141 to a high of R163.40 before slipping to R157 after they were announced. Libvest also climbed 6% to R24 after going higher and is still undervalued. Liberty stable member Guardian bought Aegis and announced a rights offer, but it hasn't traded since 100 changed hands at R136 a fortnight ago. Stanbic raced to a high of R300 before easing to R291 for an 8% jump. The share is to be split 10 for one by May Sources speculate Nail and Metlife announced are looking at a merger with Johnnic; Nail added 25c to 760c, Metlife 200c to R18 andJohnnic 350c to R59. There was enormous volume in Absa on Friday, including a R90-million asset swap out of R125-million worth of trade. There was also a basket trade of R37-million in Aflife shares, and a bookover of 1-million Outsourcing shares at R21.50. Forbes also enjoyed buoyant trade - particularly ahead of this week's cautionary. Development stage-quoted Business Bank lost ground after a highly successful listing, shedding 19% to 392c. There was uncharacteristically high volume in Housewares: market talk is that a deal will be announced this week. Rainbow also enjoyed a place in the sun, adding a third to 24c on big volume. Bonnita - 440c as recently as October 1996, ditched another 19% to 78c after a profit warning. Three months after Icon issued shares at 100c and listed, it has revised earnings forecasts down by 75% and will be restructured after Chester bought 37-million shares at 35c. Icon will be renamed Chet Industries. Brainware, the newly listed computer software brainchild of former Q Data man Piet den Boer, crashed 36% to 355c following the departure of two key directors. Brainware took large paid adverts in daily financials this week to note that only six out of 1 200 had left; the market thought it protested too much. Rebhold jumped to R17 after acquiring Jumbo Cash & Carry, easing to R16.
Julie Walker Top of page
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