THURSDAY, 12.30AM:
JSE shares ended lower on Thursday as the market drew breath from the recent bull run to indulge in a little profit taking.
The all gold index dropped by 3,9 points to close at 802,5 while the industrial index fell 23 points to a 7 969,4 close. The financial index broke record setting run, dipping 27 points to 12 184,2 while the all share index ended 12,3 points lower at 6 800,9.
The rand ended stronger on Thursday ending at R4,9415/45 to the dollar just before close, after trading between bid rates of R4,9480 and R4,9395 during the day. The figure was slightly higher than R4,9435/65 at Wednesday’s close.
BUSINESS BRIEFS
FOREIGN INVESTMENT UP
FOREIGN direct investment in South Africa is rising steadily, with R13,6-billion rand injected into the economy 1997, Trade and Industry Minister Alec Erwin told Parliament on Wednesday. He added, however, that the figure “remains still too low”. Since 1994, foreign direct investment has totalled R32,2-billion but, despite this growth, Erwin warned that foreign direct investment alone will not solve South Africa’s growth and job creation needs if it is not targeted more into the productive sector than as speculative investment.
ZUMA’S DRUG BILL CHALLENGED
A CONSORTIUM of 42 pharmaceutical companies, including the Pharmaceutical Manufacturers’ Association, on Wednesday filed a case in the Pretoria High Court challenging Health Minister Nkosazana Zuma’s amendments to the Medicines and Related Substances Control Act. They are challenging specific wording in the Bill that could permit a number of patent rights to be cancelled as part of government’s attempt to lower drug costs. The Bill is being challenged on the grounds that it violates the Constitution by giving Zuma the authority to override the Patents Act.
JAPAN LOANS SA R250M
JAPAN will give the South African Rail Commuter Corporation a 25-year, R250-million low-interest loan to upgrade rolling stock on its Soweto-Johannesburg line, Foreign Minister Alfred Nzo and Japanese ambassador to South Africa Atushi Hatakenaka announced on Thursday. The loan, which will come out of the development assistance component of the R6,24-billion aid package Japan offered to South Africa in 1994, carries a 2,7% interest rate.
DRC BUYS CHINESE VEHICLES
IN THE latest of four recent trade deal between the two countries, the Democratic Republic of Congo has signed a contract to purchase 2 000 all-terrain military vehicles from China, the Chinese media reported on Thursday. The DRC has made a $3,6-million dollar up-front payment and has reportedly sent 33 officials to the manufacturer, Dongfeng Automobile Corporation to study maintenance and operation of the vehicles. The two countries signed road-building, agriculture, mining and manufacturing deals earlier in the month following DRC President Laurent Kabila’s successful visit to China in December.
CELLPHONES FOR BOTSWANA
BOTSWANA awarded its first cellular telephone licence to Mascom Wireless on Wednesday. Mascom is a consortium of Portugal Telecom SA, Zimbabwe’s TS Masiyiwa Holdings, and Botswana’s Deci Holdings, the Botswana Telecommunications Authority announced. A second licence will be awarded by the end of the month.
GUARDS THREATEN TO STRIKE
ELEVEN trade unions representing security workers are threatening to embark on a nationwide strike on Friday, following a deadlock in negotiations with employer representatives. Security services nationwide could be crippled if the expected 100 000 security guards honour the strike, called to demand improved conditions of employment and a 12% salary increase.
KNP LEYKHAM BACK IN BLACK
A EUROPEAN paper making firm acquired by Sappi last year turned its previous year’s R1,2-billion loss into a net profit of R350-million last year, Sappi announced on Wednesday. KNP Leykam, purchased by Sappi for R6,1-billion in 1997, achieved a 5% rise in sales to R5,5-billion that year. Sappi said the year was one of “satisfactory demand”, but insignificant price increases.
BoE NABS 12% OF NETCARE
FINANCIAL services company Board of Executors snapped up 12% of listed private hospital group Netcare on Wednesday. The purchase of 100-million shares at between R1,60 and R1,80 a share was made on behalf of various local clients who saw good growth prospects in the company, BoE portfolio manager Kevin Cousins said. He said Netcare, formed to target the managed health care market, had taken over poorly managed assets within an entrepreneurial framework and is facing an impressive growth forecast.
HIGHVELD BOUNCES BACK
ANGLO-American steel producer Highveld Steel and Vanadium on Wednesday announced a 72% rise in headline earnings last year after making a loss the previous year, despite battling low steel prices and ongoing losses at the Columbus Stainless Steel co-venture. Hiveld managing director Trevor Jones said he attributes the dramatic turnaround to a combination of strong vanadium prices and slashed losses at Columbus, a joint venture with the Industrial Development Corporation and Samancor. Outspoken Hiveld chairman Leslie Boyd warned the government that its green paper on a new minerals policy could reduce South Africa’s foreign exchange earnings as a result of an oversupply of mineral production.