Investors in Petra Diamonds should be patient, SP Angel said

Investors in Petra Diamonds lack confidence, leaving the share price exposed should worries about Chinese demand persist, broker SP Angel told clients.

The Asian giant represents only about 16% of market demand but expectations were for growth in the mid-teens going forward, making it an "important" growth market, the analysts said in a research note sent to clients.

Nevertheless, the company maintained its guidance for the full-year on expectations for a better mix of stones in the second half of the fiscal year.

Furthermore, the drop in prices was partially offset by a 13% depreciation in the rand over the company´s fiscal first quarter.

"Operationally the company performed well, with Finsch performing well and Cullinan lower according to mine plans," the broker added.

"We continue to maintain that patient investors will be rewarded but may need to wait till better news-flow in the second half."

SP Angel reiterated its recommendation to 'buy' and target price of 156p.