UPDATE 1-South Africa's Sibanye leads stocks lower; rand steady

Wed Apr 19, 2017 4:26pm GMT
 

* Sibanye Gold down more than 6 pct

* Rand seeking direction in quiet week (Adds closing prices, detail, analyst comment)

JOHANNESBURG, April 19 (Reuters) - South Africa's Sibanye Gold led the bourse lower on Wednesday as it prepared to raise cash to fund an acquisition in the U.S. as well as a weaker bullion price.

The benchmark Top-40 index closed 0.22 percent down at 45,771 points, while the broader All-share index lost 0.24 percent to 52,545 points.

Sibanye Gold fell 6.33 percent to 31.20 rand as bullion fell 1 percent on Wednesday.

"Sibanye is falling more than the other gold shares because it also needs to raise a lot of debt currently," BP Bernstein trader Vasili Tirasis said.

Sibanye plans to tap shareholders for about $1 billion to partly fund a takeover of U.S.-based Stillwater Mining Co and raise a further $1 billion in debt, most likely in the bond market, to fund the transaction.

Shares in Pick n Pay were down 4.40 percent at 61.69 rand, compared with a 1.1 percent drop in the Johannesburg Securities Exchange's general retailers index.

Pick n Pay reported slower sales and profit growth in its full-year results on Wednesday, sending the retailer's shares lower despite an 18 percent rise in earnings.   Continued...

 
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