De­cline ex­plained

Finweek English Edition - - MARKETPLACE SIMON SAYS -

Stay­ing with As­to­ria, I have been ap­proached by a num­ber of peo­ple wor­ried about the price de­cline of the share. This is be­ing driven by three fac­tors. Firstly, at many stages when the rand was weak­en­ing in early 2016, As­to­ria traded well above the NAV and at the time I warned against buy­ing above NAV. This pre­mium to NAV has closed and the stronger rand has also dented the price. The third is­sue is a small de­crease in NAV from $0.98 to $0.97. Ig­nor­ing the NAV change, this is the fea­ture of As­to­ria – it will track the un­der­ly­ing NAV but also tracks moves in the cur­rency and a stronger rand will see As­to­ria mov­ing weaker.

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