STOCK WATCH
Aspen perks up on stronger rand
The stronger rand helps the manufacturer of branded and generic pharmaceutical products as it imports most of its active ingredients
14 March 2017 - 06:14
Aspen Pharmacare Holdings’ share price increased 1.63% to R279.45 on Monday — its highest for March — on the back of a stronger rand. About 80% of Aspen’s earnings are offshore, which means the share price largely tracks the rand against forward-exchange contracts. "A stronger rand results in forex losses against their forward-exchange contracts," said BPI Africa equity research analyst Kate Turner-Smith. However, it helps the company, which imports most of its active ingredients.
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