Capitec jumps 11 pct on report of SBI interest

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JOHANNESBURG, Oct 29 (Reuters) Shares in South African financial services firm Capitec jumped over 11 percent on Monday after a report that State Bank of India was looking to take a stake in the mass-market lender.

Capitec shares rose 11.36 percent to 49.00 rand. By 0744 GMT, the stock had pared gains and stood 6.82 percent higher at 47 rand.

The Economic Times of India reported on Sunday that the government-run State Bank of India had hired KPMG to advise on the transaction.

Capitec was not immediately available for comment but local media quoted the company as saying it was not in talks with any foreign bank.

South African financial shares have gained sharply since last week, boosted by China's biggest lender ICBC <1398.HK> buying a 20 percent stake in Standard Bank , Africa's biggest bank by assets.

Industrial and Commercial Bank of China will buy the Standard Bank stake for .6 billion in cash, the largest foreign investment in Africa yet.

REUTERS MP SSC1616

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