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Johannesburg - Shares in asset management and stockbrokerage firm Barnard Jacobs Mellet (BJM) surged 21% on Wednesday following a cautionary announcement, rumoured to concern the disposal of its private client business in a management buyout.
The share was trading at 375c - up 65c since the start of trading.
At the time of publishing, BJM had not made a formal disclosure on the issue, but said it would release a statement later on Wednesday.
The cautionary announcement also coincided with the release of a trading statement, in which BJM advised shareholders it expected headline earnings of between 11 to 14 cents per share when the company reports its six-month results to end-September, compared to 10.9c for the previous corresponding period.
BJM has made little secret of the fact that it sees itself primarily as an institutional manager which services private clients as an add-on to its business.
Fin24.com has previously challenged group CEO Andile Mazwai on the inclusion of retail clients in the group's model. He reiterated at the time that private clients remained an "integral part" of the BJM business.
An analyst commented private clients are expensive to manage, pointing out that HSBC Securities sold its private client division to Investec in 2005 while retaining control of its institutional clients.
- Fin24.com