HSBC Securities has downgraded South African Breweries to "reduce" from "add" with a price target of 430p.

Analysts said South African beer volumes had continued to decline in the second half after a 6% fall in the first half.

Operating margins were falling because of under-utilisation of capacity a note from HSBC analysts said.

It gave a long-term gloomy forecast because of rising raw material costs, the diversion of consumer spending to the Lottery and mobile phones, and the rise of Aids.