Dec. 21 (Bloomberg) -- Mediclinic International Ltd., South Africa’s largest hospital group by market value, rose to a record before its inclusion in an index of the country’s 40 biggest, most tradable companies.
Shares closed 2.3 percent up at 54.90 rand, the highest since at least 1990 when Bloomberg started tracking the stock, adding to yesterday’s 1.2 percent gain. Almost five million shares traded, or 273 percent of the daily average over the past three months.
Mediclinic will be included in the Top-40 index of stocks from Dec. 25, replacing Harmony Gold Mining Co., JSE Ltd., operator of the country’s exchanges, said on Dec. 12. The company’s share price jumped 76 percent this year, increasing its market value to 45.4 billion rand ($5.21 billion). Shares in Harmony declined 27 percent over the same period, reducing its market capitalization to 30.3 billion rand.
Investors “tracking the index know about the changes beforehand and will be buying shares before it enters the index,” Drikus Combrinck, a portfolio manager at PSG Konsult, said by phone from Pretoria. The company’s expansion in Switzerland and the United Arab Emirates had pushed its market value ahead of listed rivals Netcare Ltd. and Life Healthcare Group Holdings Ltd., he said.
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