De Beers diamond sales decline due to earlier Diwali

Michele Maatouk Sharecast | 05 Sep, 2017 09:38 - Updated: 09:54 | | |

Diamond
  • 1,291.50
  • -0.39%-5.00
  • Max: 1,296.50
  • Min: 1,276.00
  • Volume: 3,005,081
  • MM 200 : n/a
17:18 19/09/17
  • 7,275.25
  • 0.30%21.97
  • Max: 7,285.67
  • Min: 7,243.59
  • Volume: 0
  • MM 200 : n/a
17:19 19/09/17
  • 1,500.80
  • 0.06%0.90
  • Max: 1,501.10
  • Min: 1,496.43
  • Volume: 0
  • MM 200 : n/a
17:19 19/09/17
  • 16,659.00
  • 0.25%41.27
  • Max: 16,696.09
  • Min: 16,534.97
  • Volume: 0
  • MM 200 : n/a
17:19 19/09/17
  • 4,044.78
  • 0.34%13.58
  • Max: 4,049.50
  • Min: 4,027.12
  • Volume: 0
  • MM 200 : n/a
17:19 19/09/17
  • 3,994.36
  • 0.32%12.78
  • Max: 3,999.03
  • Min: 3,977.83
  • Volume: 0
  • MM 200 : n/a
17:19 19/09/17

Anglo American's De Beers posted a decline in diamond sales on Tuesday as Diwali was earlier than usual this year.

The company reported provisional diamond sales of $505m for the seventh sales cycle of 2017 compared to $576m in the sixth and $639m in the seventh cycle of last year.

De Beers chief executive Bruce Cleaver said: "As expected, rough diamond sales were somewhat lower in the seventh cycle of the year, with some midstream demand having already been brought forward into Cycle 6 due to Diwali being earlier than normal in 2017.

"Businesses in the diamond industry's midstream segment are adopting a watchful approach as attention now turns to the Hong Kong Jewellery & Gem Fair in mid-September."

RBC Capital Markets said this was a weaker result than it had expected, which shows some slowing in the rough market.

"De Beers' CEO Bruce Cleaver stated that the midstream 'are adopting a watchful approach as attention now turns to the Hong Kong Jewellery & Gem Fair in mid-September'. In our view, this is a key barometer for the rough market as we move into year-end; we believe that after a strong H1 of rough buying post-Indian demonetisation in late 2016, a strong sales season is
required for polished to result in an inventory destocking and therefore a subsequent improvement in liquidity in the midstream.

"We therefore expect a cautious market into mid-September with the sentiment post-Hong Kong likely to drive the rough market for the remainder of the year."

At 0935 BST, the shares were up 0.4% top 1,422p.

More news

17:59 Credit Suisse upgrades Tullow Oil, downgrades Ophir Energy

Analysts at Credit Suisse rejigged their recommendations for European Exploration and Production outfits, telling clients the sector was better positioned to emerge from the cycle, while its year-to-date de-rating had made it more "attractive".

17:47 Results round-up

Online grocery specialist Ocado reported a slight acceleration of growth in the third quarter of the year but comments about a short-term spike in costs hit the shares on Tuesday.

17:36 Investec says Debenhams dividend may be unsustainable

Investec reiterated its 'sell' recommendation on Debenham's on the back of expectations for foreign exchange headwinds, unanswered questions around execution and profitability and the ongoing shift towards 'on-line'.

17:25 London close: FTSE higher on the day, investors wait for Fed statement

Shares finished higher on Tuesday as the pound gave up early gains against the dollar.

17:20 Europe close: Stocks end with slight gains ahead of Fed

Stocks finished slightly higher as investors listened-in on a speech by US president Donald Trump at the United Nations and waited on the result of the US central bank's policy decisions the next day.

16:16 BlueRock Diamond nearing monthly target production

BlueRock Diamonds, the diamond mining company and operator of the Kareevlei Diamond Mine in the Kimberley region of South Africa, said it was nearing its target of 25,000 tonnes of production per month.

15:59 FTSE 100 movers: Food retailers rise on sales, GlaxoSmithKline softens

The FTSE 100 was in the green on Tuesday afternoon, as the pound gave up early gains against the dollar.

15:52 Swallowfield boosts operating profit 180%, appoints new finance director

UK-based personal care and beauty products group Swallowfield announced on Tuesday that it had grown both full-year profits and revenue.

15:49 Inland Homes makes outline planning application on Wilton Park

Brownfield-focussed housebuilder Inland Homes announced on Tuesday that it has made an outline planning application on its 100-acre flagship development site ‘Wilton Park’ in Beaconsfield, Buckinghamshire.

15:47 US open: Merger speculation sends telecoms names higher

Stocks were holding slightly higher ahead as investors listened in on a speech by the American president to the United Nations's general assembly and ahead of the US Federal Reserve's policy decision the next day.