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Christo Wiese's mystery deals the highli... |
Christo Wiese's mystery deals the highlight of a mixed weekTHE highlight of a mixed week was the closely timed big bookovers of three shares in which entrepreneur Christo Wiese is known to have an interest. Ahead of the delisting of superfluous quotations in the Board of Executors group there was a bookover of R102-million in Orion Holdings. Minutes later, 3-million NBS Boland shares were put through, then R72-million worth of Cape developer Monex. The same broker SMK was involved in all the deals. The Orions made up some of the discount: Selections picked up 27% to R10.50, Holdings 9% to R12.30 and NBS Boland 80c to 950c. BoE itself slipped 25c to 750c and Boecorp edged up 10c to 610c, but Boecorp N climbed 24% to 650c. After last week's 6% drop, the all-share index managed to pick up only 26 points to 7 020. A stronger rand, closing at 609c to the dollar, and an indifferent gold price conspired to knock 50 points or 5% off the gold index in spite of some promising quarterly results and prospects. Nervousness on Wall Street also affected market sentiment. The JSE revised the way in which price/earnings ratios are to be expressed. Henceforth, only actual historic earnings and not pro forma earnings postulated by market newcomers will be used to calculate the PE, otherwise a zero will be reflected. This should see some already enormous PEs get even more astronomical when actual earnings are divided into the share price; others will doubtless slip to zero as they have not reported a tangible profit at the time of listing. Companies listed from 1 June will be affected. Information technology stocks continued their winning ways. Didata rose to R37.75, closing at R37, after its 30 for 100 offer to Plessey shareholders; Plessey added 85c to R10.90 - almost in kilter. Spescom, the chameleon that has moved from defence to metering to telecommunications, changed hands in abnormally high volume of 702 000 shares (roughly two weeks of normal trade) the day before a rival bid for Plessey was announced. Spescom has risen by 50% in the past month to R18. Software Connection's £10-million plus acquisition of a UK training group was greeted with a 50c drop to 540c offered. Scrip was placed at 360c. Good results from CCH lifted the price 40c firmer to R32.90. Murray & Roberts' sale of Blue Circle Cement for R1.5-billion was well received: M&R added 20% to 635c after touching 700c. Accord added 45c to 285c on R34-million worth of acquisitions and a new warning. The two new listings had differing debuts: Billboard was pushed to 240c but halved to close at only a 20c premium to the pitch price; Intertrade enjoyed a 48% premium at 148c. Punters expect SA Druggists' cautionary to herald a delisting; the market is hoping for R36. SAD put on 310c to R32.60. CAM, Randgold and JCI were all weaker on the announcement that existing common shareholders could lead to a merger.
Julie Walker Top of page
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