While much of the equity market focus continues to be on the currency, there were some notable developments on Friday. Below is a round-up of what is happening in the market.
Avior loses 2 non-execs
Financial services group Avior Capital Markets announced the departure of non-executive directors Elias Masilela (Ex-PIC) and Octavia Matloa. While non-executives do leave to pursue other interests, it is always a bit disconcerting to see them announcing departures of high-profile directors “with immediate effect”.
New Pan African Resources report out
Edison Investment Services has released a new research report on the SA-focused gold miner. Entitled “Finishing Unfinished Business”, the report suggests that the share has “100% upside” from current levels. The report can be found here – http://www.edisoninvestmentresearch.com/research/report/pan-african-resources467018/preview/
City Lodge to get new leadership
Clifford Ross has announced he will step down as CEO of the hotel group. He will be replaced by Andrew Widdeger. Alastair Dooley will take over as CFO and Lindiwe Sangweni-Siddo as Chief Operating Officer. City Lodge trades on a price to earnings multiple of 21 times earnings and offers a 3% dividend yield.
Broker Consensus Forecast Updates
Sharenet has updated its Broker Consensus Forecasts for a number of stocks with notable changes being Merafe and Netcare ((Buys) while Assore was updated to a “Sell”.
Consolidated Infrastructure rebounds
Shares in the beleaguered industrial infrastructure player surged 15% on Friday as the firm announced a rights issue and the introduction of a new strategic investor in the form of Fairfax Africa. Interestingly the rights issue has been set at R4/share – a premium to the current share price.
Hwange suspends its MD
Hwange Colliery announced on Friday that it had suspended its Managing Director Thomas Makore. The Zimbabwewan based coal miner is conducting an investigation and will release finding shortly.
Orion Minerals gets a new shareholder
ASX and JSE-listed miner Orion Minerals has announced that it will get a new strategic investor in the form of ASX-listed Independence Group. The company will take receive a $5m injection to fast-track the development of Zinc-Copper projects. Interesting to note that Orion Minerals is up 108% year to date.
Murray & Roberts and Aveng tie up on the cards
The JSE construction sector continues to struggle for life and the boards of Aveng and Murray & Roberts have proposed that Murray & Roberts buy out Aveng. It isn’t all expected to be smooth sailing with Murray & Roberts having a significant shareholder that it will need to get on-board in the form of ATON Gmbh.
EMedia to report steep loss
The media sector in South Africa faces a number of headwinds and EMedia Holdings (which includes e.TV, ENCA and YFM) has announced that earnings and headline earnings are expected to dip sharply when the company releases full year results on 23 May 2018.
Master Plastics directors hold the faith
MD and CFO Manley Diedloff purchased R217 485 of shares in the company at an average of R1.45 per share. In the last 12 months, directors of Master Plastic have been buyers of shares on no fewer than 11 occasions.
New highs and lows
Efora Energy, Invicta and Argent all touched new 52-week lows during thin trade on Friday. On the plus side, Capital Appreciation hit a 52-week high trading at 97c/share with 9m shares changing hands.
