MTN dampens SABMiller’s boost

SOUTH African markets ended mixed on Friday after a hectic week during which brewing titan SABMiller disappeared from the JSE after more than a century on the bourse.

Shareholders this week backed the $100-billion-plus (more than R1.37-trillion) merger deal with Anheuser-Busch InBev, which will take effect on October 11.

“The only way to participate in beer drinking across the African continent is to invest in AB InBev, which has been listed here [on the JSE] since January. So, it is not like you have lost something — you have gained a whole lot of something,” asset manager Vestact said in a note.

As SABMiller bowed out of the local scene, the JSE set a new record for the value of shares traded — R64.32-billion, from a previous high of R61.42 billion in March.

The All Share index ended the week fractionally lower at 51 949.80 points, hurt mainly by industrial stocks.

Investment group Remgro and MTN Group in particular dragged down the industrial index, which has for the most part of this year been undermined by a stronger rand.

This week, Remgro announced a R9.9-billion rights offer for potential acquisitions, notably SABMiller’s 26.4% stake in Distell.

Fresh allegations that MTN colluded with commercial banks to illegally repatriate about $13.9-billion from Nigeria weighed on the share price.

In the currency markets, the rand swung from highs of R13.39/$ to lows of R14.02/$.

The trigger on the positive side was the deal between SABMiller and AB InBev, which is expected to result in net inflows into the country this month.

But global sentiment soured as the week progressed, pulling the rand along with it, as concerns mounted over the financial health of Deutsche Bank following its $14-billion fine over mortgage-backed securities from US authorities.

Major oil producers also featured prominently as they proposed to cut production at their November meeting.