Loading...
See More

FirstRand still a buy: Analysts

Dec 08 2010 15:42 I-Net Bridge

Company Data

MMI Holdings Limited [JSE:MMI]

Last traded 0
Change 0,1
% Change 0
Cumulative volume 908556
Market cap 47.16bn

Last Updated: 19-12-2014 at 04:41. Prices are delayed by 15 minutes. Source: McGregor BFA

FIRSTRAND LIMITED [JSE:FSR]

Last traded 0
Change -0,57
% Change 0
Cumulative volume 7867802
Market cap 277.73bn

Last Updated: 19-12-2014 at 04:41. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

FirstRand spikes after MMI unbundling

Unbundling lifts FirstRand earnings

Unbundling drives FirstRand down

MMI shares fall on listing

What’s going on at RMB?

'Metromentum' to be listed as MMI

 

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
NEXT ON FIN24X

 

Lastest Articles

Here is how to check your credit score and manage it Read More...
Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

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