Capevin Climbs Third Day to Record High as Share Volumes Surge

Capevin Holdings Ltd., which has a majority stake in drinks maker Distell Group Ltd., rallied to an all-time high as trading volumes surged this week.

Capevin’s shares advanced a third day, adding 4.2 percent to 9.20 rand by 1:33 p.m. in Johannesburg, the highest on record. More than 28 million shares were traded, equal to about 46 times the three-month daily average. The stock is up 3.7 percent this year, compared with a 5.2 percent gain for Distell.

“It was probably just due for a correction” and there was a “big buyer” of the stock, De Wet Schutte, an analyst at Avior Capital Markets, said by phone from Cape Town on Wednesday.

Capevin’s Distell, which reported growth in its South African operations in October, should benefit from a slump of almost 50 percent in global crude prices since June that’s driving down gasoline costs in the continent’s second-biggest economy and keeping a lid on inflation. Consumers may save 20 billion rand ($1.75 billion) because of lower fuel costs, Johann Els, a senior economist at Old Mutual Investment Group, told reporters in Johannesburg on Jan. 27.

Distell, with brands including Two Oceans wine and Amarula liqueur, pared its 2015 gain Wednesday, dropping 2.1 percent to 143 rand.

Capevin is “a holding company with no other investments,” Schutte said. “Capevin should track Distell over time.”

Before it's here, it's on the Bloomberg Terminal.