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FirstRand still a buy: Analysts

Dec 08 2010 15:42 I-Net Bridge

Company Data

MMI Holdings Limited [JSE:MMI]

Last traded 34
Change 0
% Change 0
Cumulative volume 2002775
Market cap 0

Last Updated: 24-04-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

FIRSTRAND LIMITED [JSE:FSR]

Last traded 58
Change 0
% Change -1
Cumulative volume 10936526
Market cap 0

Last Updated: 24-04-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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Johannesburg - Financial services group FirstRand [JSE:FSR] remains a ?buy? despite the unbundling of MMI shares to FirstRand shareholders on Monday, according to analysts on Wednesday.

Newly-established MMI, which now constitutes the country's third biggest life assurer, was forged through the merging of FirstRand subsidiary Momentum with Metropolitan [JSE:MET].

The unbundling saw 10.56% or 2.20 rand shaved off FirstRand's share price on Monday as the market stripped out the Momentum value. But at one time, the share price was down over 13%, which one or two analysts felt was an ?over-reaction?.

However, pundits have pointed out that the price reflected more or less the exact contribution of the stake. MMI accounted for around 270 cents to 280 cents of FirstRand's trading price.

FirstRand itself pointed out that the fact that the price fell only 13% is a good sign in that the price fell less than the value lost and FirstRand shareholders still get the additional value in the MMI shares.

The group's share price was hovering around the 18.62 rand level in noon trade on Wednesday.

An I-Net Bridge consensus of six analysts has the stock remaining as a 'buy' with one analyst rating it as "market perform'.

 

 

momentum group  |  firstrand bank  |  mmi holdings

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