Discovery sees biggest share price fall since 2009

Discovery, South Africa’s largest medical insurance provider, saw its share price fall further today than it has in more than four years, after saying full-year profit will be up to 10% lower on the year.

The stock slumped by as much as 6.9%, the biggest intraday fall since March 2009, before trading 6% lower at R89.36 per share at 12.36pm in Johannesburg. About 1.5-million shares, or 1.2 times the three-month daily average, were traded. Discovery is the worst performer today on the 165-member FTSE/JSE Africa All-Share Index.


Earnings per share at Discovery, 25% owned by investment holding company RMI Holdings, will probably be between the same and 10% lower for the year to June compared with a year earlier, the Johannesburg-based company said. The share traded at 21 times profit and 18 times forecast earnings.


“Given where the price-earnings rating of the share was, around 20 times earnings, there wasn’t any room for disappointment in terms of the earnings report,” said Simon Fillmore, chief executive officer of investment firm Independent Securities. “It was priced for perfection and looking very expensive in the short term.”


The company started its wellness-based life-insurance model Vitality in Singapore through a joint venture with insurance company AIA Group in July. The stock increased by 44% this year compared with an 8% rise in the benchmark all-share gauge. Cape Town-based RMI's share price fell by 3.9% today to R25.89 per share.


“The share price just moved exceptionally strongly over the last couple of months,” Fillmore said. “The trading update was below what the market was expecting.” – Bloomberg


Miners speak out against Sibanye

Not a year into buying Lonmin, Sibanye is accused of mistreating the mineworkers who were injured eight years ago during the Marikana massacre. But the platinum giant says it is a miscommunication. Athandiwe Saba and Paul Botes visit Marikana to find out the truth

Mabuza contract grows by R10m

Eskom’s negotiators in a R100-million maintenance contract came back with a proposal to push up the costs

‘There were no marks on his neck’, Neil Aggett inquest...

The trade unionist’s partner at the time he was detained at John Vorster Square says she now believes his death was not a suicide

Press Releases

Boosting safety for cargo and drivers

The use of a telematics system for fleet vehicles has proved to be an important tool in helping to drive down costs and improve efficiency, says MiX Telematics Africa.

Silencing the guns and firearms amnesty

Silencing the guns and firearms amnesty

Gender-based violence is an affront to our humanity

Gender-based violence is an affront to our humanity

UK-Africa investment summit 2020: Think Africa Invest SA

UK-Africa investment summit 2020: Think Africa Invest SA

MTN unveils TikTok bundles

Customised MTN TikTok data bundles are available to all prepaid customers on *136*2#.

Marketers need to reinvent themselves

Marketing is an exciting discipline, offering the perfect fit for individuals who are equally interested in business, human dynamics and strategic thinking. But the...

Upskill yourself to land your dream job in 2020

If you received admission to an IIE Higher Certificate qualification, once you have graduated, you can articulate to an IIE Diploma and then IIE Bachelor's degree at IIE Rosebank College.

South Africans unsure of what to expect in 2020

Almost half (49%) of South Africans, 15 years and older, agree or strongly agree that they view 2020 with optimism.