Sanlam Climbs Most in More Than Three Years as Profit Jumps 40%
Sanlam Ltd. (SLM), the largest South Africa-based insurer, gained the most in more than three years after reporting that profit may increase as much as 40 percent.
Sanlam rose as much 5.8 percent, the most since May 24, 2010 on an intraday basis, and traded at 50.33 rand by 3:12 p.m. in Johannesburg.
Earnings excluding one-time items probably climbed by 35 percent to 40 percent in the year through Dec. 31, the Cape Town-based company said in a statement today. The expected increase in profit came partly from one-time gains from investment revaluations, the discontinuation of a tax charge and an advance in the company’s share price.
“The underlying investment return achieved on shareholder funds reflects the market performance for the period,” Sanlam said in the statement.
South Africa’s benchmark stocks gauge, the 165-member (JALSH) FTSE/JSE Africa All-Share Index, rose 18 percent during 2013 compared with the MSCI Emerging Markets Index’s 5 percent drop over the same period. The rand’s 19 percent slump against the dollar last year boosted stocks deriving most of their sales in foreign exchange, including Naspers Ltd., Sasol Ltd. and MTN Group Ltd.
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