South African Banks Shares Tumble As Naspers, SABMiller Gain

VENTURES AFRICA – On Wednesday, traded stocks edged lower in South Africa. According to experts, investors are afraid of uncertainties surrounding resource stocks and crisis in the EuroZone.

They said investors are afraid that a summit in Europe will be unable to resolve the region’s debt crisis. As a result, Absa Group led banking shares lower for a second session. The share closed 1.4 percent down at 141.50 rand ($17) after tumbling around 8 percent on a profit warning announced on Tuesday

Shares of Nedbank and Standard Bank also dipped almost 1 percent.

However, some companies recorded gains. Brewing giant SABMiller shares recorded a one-year high of 333 rand ($40). Also, stocks of South African media and e-commerce firm Naspers recorded gained on positive results.

The shares of Naspers rose 1.25 percent to 460.80 rand ($55) after the company posted a 15 percent increase in full-year profit; it was lifted again by robust growth in its internet division. The company also delivered a better-than-expected dividend.

While reacting to the mixed performances of the stocks, a trader at Johannesburg brokerage PSG Securities, Desmond Reilly said: “There is going to be a bit of negative sentiment there for a while. The guys were very disappointed with that trading update.”

Kumba Iron Ore led the losers’ chart after it fell more than 3 percent to 555.30 rand ($66), making it the Top-40′s worst performer. 196.5 million shares were traded, rising from 175 million in the previous session.

REUTERS