June 12, 2003
By Vernon Wessels
Johannesburg - The unbundling by Johnnic Holdings of its R7 billion stake in MTN Group has pushed Johnnic out of the FTSE/JSE Africa Top40 and opened the door for hospital group Network Healthcare (Netcare).
Netcare tomorrow will enter the elite Top40 index, which will boost demand for shares in the hospital group.
Tracker funds, investment funds that mirror an index, will now need to buy Netcare shares and sell Johnnic shares.
Netcare's share price climbed sharply ahead of the release of its interim results last month to peak at R3.60 but has since lost ground. It closed 6c down at R3.39 yesterday.
The share has two buy recommendations and one hold
.
As from tomorrow Johnnic will also be transferred to the media, photography, publishing and printing sector, as it has hived off its telecommunications interests to MTN. Johnnic has been left with only Johncom.
Other changes to the indices will result in Netcare being removed from the FTSE/JSE Africa Mid Cap index and replaced by Apexhi Properties, which moves out of the FTSE/JSE Africa Small Cap index. Johnnic vacates its spot in the FTSE/JSE Africa Industrial 25 to make way for Dimension Data (Didata).
Johnnic's share price fell 90c to R50.10 yesterday. Didata was up 13c to R3.43 and Apexhi gained 10c to R7.60.
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