Ellerines sale gives lift to African Bank

SHARES of African Bank Investments rose more than 4%, reversing early losses, as investors responded positively to plans to sell its Ellerines furniture business and raise up to R4-billion in a rights issue. OVERSEAS investors bought a net R3.2-billion of South African bonds and a net R2.1-billion in JSE-listed stocks in the week ending August 2, according to data from the Johannesburg Stock Exchange. THE Standard Bank house price index improved by 8% year on year in July‚ from 7.8% in June. The nominal index growth for freehold properties recorded a 10.1% year-on-year improvement in July. ALTHOUGH business confidence in South Africa nudged up to 90.7 in July from 90.2 in June, it was still constrained by poor economic conditions, said the South African Chamber of Commerce and Industry. SOUTH Africa’s manufacturing output increased by 0.4% year on year in volume terms in June from 2.1% in May, said Statistics South Africa. Factory production was up 3.1% in the three months to June. MERAFE Resources reported a 30% decline in first-half earnings after the ferrochrome producer was hit by a write-down related to a potential asset sale. Merafe operates a joint venture with Glencore Xstrata. SOUTH Africa’s biggest construction group, Aveng, said it expected a drop in full-year profit, surprising investors who thought the company was solidly in the black. The news sent its shares down more than 11%. ANGLOGOLD Ashanti, the world’s third-largest bullion producer, reported a swing to a loss in the second quarter and scrapped its quarterly dividend payment, saying it would revert to a biannual payout. AQUARIUS Platinum performed strongly at an operational level, but its results for the year to June showed a headline loss‚ which excludes exceptional items‚ to $61-million compared with a $154-million loss a year earlier. SOUTH Africa’s mining production fell by 6.2% year on year in June after a 1.1% decrease in May‚ data released by Stats SA show. The largest negative growth rate was recorded for “other” metallic minerals (-38%).