Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

Sanlam, Discovery in spotlight

Jan 20 2010 10:57 Marc Ashton

Company Data

Sanlam Ltd [JSE : SLM]

Last traded R30.49
Change R0.01
% Change 0.03%
Cumulative volume 3.66m
Market cap R64.03bn

Last Updated: 13/02/2012 at 19:33. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Discovery Holdings Ltd [JSE : DSY]

Last traded R46.85
Change R0.19
% Change 0.41%
Cumulative volume 493,954
Market cap R27.73bn

Last Updated: 13/02/2012 at 19:33. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Related Articles

Stocks: what's in store in 2010?

Allan Gray: Market expensive

Separating fundis and frauds

Retiring early 'not an option'

Markets bolster Sanlam

Sanlam announces two new deals

 

Top Stories

Xstrata shuts furnaces to aid Eskom

Feb 13 2012 12:15

Miner Xstrata says it has brought forward maintenance on two furnaces to assist Eskom to save power.

SA economy adds 80 000 jobs in January

Feb 13 2012 10:43

Although jobs were created, the economy is still 420 000 jobs short of the peak employment level before the 2009 global financial crisis, says Adcorp.

Greece at last approves austerity measures

Feb 13 2012 07:58

Greek lawmakers have approved a new round of drastic austerity measures after a long day of street battles between police and protesters left dozens injured.

 
Share Share line Print

Johannesburg - A possible special dividend from Sanlam [JSE:SLM] and uncertainty about Discovery's life insurance business are two issues that will keep insurance industry analysts intrigued in coming weeks.

Analysts at Credit Suisse Standard Securities have flagged Sanlam and Discovery [JSE:DSY] as two firms to watch in the short term.

Although the group maintains its neutral recommendation on Sanlam for 2010, it has pencilled in a one-year price target of 2 700c a share for the firm - 17% above the present price of 2 294c.

Also, it believes shareholders could score should Sanlam decide to release some of its R3.1bn excess capital. A reason for supporting this notion is that asset prices have risen significantly in the second half of 2009, lowering the opportunity for a major acquisition.

By holding excess capital on its balance sheet, Sanlam would produce lower returns for shareholders than if the capital was either distributed or invested.

Also, according to Credit Suisse Standard, there are moves afoot to release additional excess capital from Sanlam Employee Benefits (up to R1.5bn) and Botswana Life operations (up to R750m).

'Underperforming' Discovery

Credit Suisse Standard has adopted a bearish outlook on Discovery Holdings, lowering its recommendation for the financial services group to "underperform".

It cautioned that policy lapses could cloud the earnings outlook of Discovery Life, which is now the biggest earnings contributor to the group, as will an acceleration of losses from the UK operations. Another concern for Credit Suisse Standard was that Discovery's 2.1% forward dividend yield remained "unattractive".

An increase in lapsed policies has been a headache for Discovery's rival Liberty Holdings, which has seen sales of its life and risk insurance products under pressure over the last 12 months. Much of this has been driven by a sharp increase in unemployment.

At close of trade on Tuesday, Discovery shares were down 0.22% to 3 185 cents per share. Sanlam was up 0.57% at 2 290c/share.

- Fin24.com

 
 
Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
Facebook still a closed book in China
Feb 08 2012 16:59

Mark Zuckerberg wants to ''friend'' China's massive market but how far is he prepared to go, and against what competition?

NicolaaSmith

What would happen if Greece leaves the European Monetary Union What would happen if Greece leaves the European Monetary Union The Euro would become a foreign currency like the US Dollar in Greece. Very little would actually change. It would be illegal for the Greek monetary authority to overprint a... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...