Mediclinic Stock Jumps as MSCI to Bring Stock Into Index
Mediclinic International Ltd. (MDC) jumped to the highest in at least 23 years following an announcement that South Africa’s largest private-hospital owner by market value will be included in the MSCI Emerging Market Index.
Mediclinic climbed as much as 8.6 percent to 76 rand and traded at 72.38 rand as of 11:50 a.m. in Johannesburg, the highest since at least August 1990, based on closing prices. More than 3.6 million shares traded, almost four times the three-month daily average. Mediclinic will join the 819-stock index starting Sept. 2, MSCI Inc. said late yesterday.
Investors “will have to reshuffle their portfolio and index trackers,” Henre Herselman, a derivatives trader at Nedbank Private Wealth in Johannesburg, said today.
Mediclinic, which is based in Stellenbosch, said on May 22 that sales in the 12 months through March rose 12 percent because of increases in patient numbers and rising average income per stay. The company’s stock also reached the highest since 1990 in December after being included in the FTSE/JSE Top40 Index (TOP40) of companies with the highest capitalization in South Africa.
To contact the reporter on this story: Janice Kew in Johannesburg at firstname.lastname@example.org
To contact the editor responsible for this story: Celeste Perri at email@example.com