Pulp and paper producer Sappi was the all-share index’s best performer on Friday afternoon, after rival International Paper reported better-than-expected results.
At 2.26pm, Sappi shares were trading at R97,01, up 8,4% or R7,52 from their previous close, after touching R97,51 a few minutes earlier. They were trading at R94,61 at noon.
Sappi shares have been strong throughout the day, having surged in New York overnight. However, they extended their gains after the International Paper results were released.
“The whole paper market made good gains overnight — the S&P paper index was up 4,7%. People were initially expecting flat results from International Paper, but yesterday [Thursday] they may have decided that the results would actually be better than this,” a dealer said.
According to AFX, International Paper on Friday reported first-quarter net earnings from continuing operations of $70-million, or 14 cents a share, up from 10 cents a share in the same period a year ago, as higher sales volumes and better productivity helped offset high wood and energy costs.
Excluding non-recurring items, earnings were 16 cents a share, above the average analyst forecast compiled by Thomson First Call of 14 cents a share. Revenue rose 6,7% to $6,4-billion, exceeding analyst forecasts of $6,3-billion. The stock closed on Thursday up $1,83 at $43,02. — I-Net Bridge