Any ideas why this is continually slipping, currently below R300.00 with volumn of around 2.8 mil in shares?
The main reason - currency. R has strengthened over the past year against major trading currencies. Only recently has it weakened considerably against the Euro, but is still
stronger against eg. the Brazilian Real.
Have patience - one of the best shares on the JSE.
Currency volatility has weighed on the results of the past year. The Group remains exposed to the strength of the US
Dollar against its primary trading currencies.
Best read the financial results for the year ended 30/06/2015Chris Gilmour on the results ..
CHRIS GILMOUR: That’s quite right. Look, this set of results I actually think is a very good set of results, frankly. I have to disclose we do hold Aspen as a core holding on behalf of our clients. It’s a great operation, it’s really incredibly well run, and I think what you’ve got to do with this set of results is you’ve got to try and distinguish between the operational side – which was very, very good indeed in virtually every jurisdiction in which they operate, including Australia, including the CIS, Russia basically, and Latin America – and, Stephen Saad touched on this, the currencies. Let’s take Australia as a classic example. They are heavily invested in Australia and the Australian dollar has been very, very weak against the US dollar. And the same goes for the Brazilian real, for example. So yes, you can do a bit at the margin in terms of hedging and the like but nevertheless, from a currency perspective, the company has taken a real hit.
Over the reporting period the R has strengthened against Aspen's main trading currencies, Euro, Aussie $, Brazilian Real, Russian Rubel. Their input costs are mainly in US$ which has strengthened against the R quite substantially over the reporting period being the 6 months to 30/06/2015.