JULY 16 2017 (The Bulletin) — In a rocky fortnight for stocks in Central Asia and the South Caucasus, only KAZ Minerals and Georgia Healthcare bucked the trend and returned growth. Both have had stellar years and are hitting all-time highs.
For KAZ Minerals, the Kazakhstan-focused copper producer formerly called Kazakhmys, production costs at its sites in north Kazakhstan have been lower than previously expected giving it greater margins. Copper prices have been fairly stable, trading in the $250 – $270 per lb corridor this year after a jump at the end of 2016.
For Georgia Healthcare, analysts have simply underestimated the profitability of the product that it was offering. This profitability may have been a motivating factor for London-listed BGEO Group, which owns a 57% stake in Georgia Healthcare, to tell investors that it was going to split into two companies. BGEO Group plans to hold the Georgia Healthcare stake, along with other assets, but it will spin off Bank of Georgia into its own London-listed company.
On the downside Nostrum was the biggest faller, shedding more than 15% of its price. It is now trading at below 430p for the first time since the end of March.
On Toronto’s stock exchange, Centerra Gold was down 6.3% to C$6.63, its lowest since the March.
ENDS
Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved
(News report from Issue No. 336, published on July 16 2017)
