Steinhoff and AB InBev action powers bourse

THE JSE all share was boosted by corporate action on Wednesday, closing 1.72% stronger at a weekly high of 51,773.50.

Steinhoff’s rights issue and approval for the takeover by Anheuser-Busch InBev (AB InBev) of SABMiller caused their share prices to climb against the backdrop of a weaker rand.

The SABMiller meeting, held in London, followed a vote earlier on Wednesday by AB InBev shareholders who also approved the transaction.

The rand lost more than 20c to R13.68/$ after analysts predicted earlier in the day that it would firm on expected SABMiller purchases of rand to pay local shareholders.

Drikus Combrinck, the head of Capicraft Investment Partners, said the rand could still strengthen in the next few months as the transaction was phased in.

“The present weakness should be regarded as shortterm,” he said.

SABMiller ended the day 1.58% firmer at R782.17. AB InBev rose 2.38% to R1,823.43.

Steinhoff rocketed ahead 6.24% to R80.72, but analysts said that was not because of the rights issue, which usually dilutes shareholder value.

It was attributed rather to retail tycoon Christo Wiese’s comments that Steinhoff could take over Shoprite.

Shoprite’s share climbed 4.38%, to R196.

Combrinck said Steinhoff could double its market value over the longer term if it continued to issue shares.

“But the real test would be growth in its share price,” Combrinck said. price