News / Industry

Monday 02 - 06 October 2017



Nedbank and Deutsche Bank on Friday announced a Southern African corporate banking alliance. The alliance would not involve creating a legal entity or joint-venture structure, said Nebank. The scope of the alliance will cover managing initial public offerings‚ rights offers and share placements. It will also include working together on bond issues and trading, it said.

AVI said on Friday it has dropped KPMG SA as its external auditor‚ joining several other JSE-listed groups‚ which have ditched the auditing firm in the wake of its conduct with the controversial Gupta family‚ which is accused of undue influence in the awarding of some state-owned contract. The contract will terminate by no later than November, said AVI.

Phumelela Gaming & Leisure said on Friday a disappointing performance from its traditional tote operations was compensated for by a pleasing performance from its fixed odds bookies. Income from its SA operation declined 1% to R1.2bn while its international arm grew income by 12% to R307m. The group’s net income grew 4% to R1.55bn and its aftertax profit grew 18% to R143m.  Phumelela maintained its final dividend at 70c‚ keeping its total for the year level at R1.04, said the company.

Caterpillar said on Thursday it will spend R1.3bn over the next 10 years on South African enterprise and supplier development. It said the equity equivalent investment programme was part of its plan to invest more than USD1bn in African countries over the next five years. This will support local content‚ skills transfer and job creation, it said.

Exxaro Resources share price jumped as much as 7% on Thursday‚ after the company said it had upped the number of class A shares it planned to sell in Tronox. It said it planned to sell 19.5-million ordinary shares in Tronox‚ from 16-million‚ worth about USD412m‚ at a public offering price of USD22 per share. Exxaro has granted an option to the book-running managers and underwriters of the offering to take another 2.9-million shares. Previously this was 2.4-million.

AB InBev said on Thursday it had completed a deal to sell its 54.5% in Coca-Cola Beverages Africa. The controlling stake was sold to Coca-Cola for USD3.15bn. The brewer said the two parties were finalising the terms of the deal‚ in which Coca-Cola will acquire AB InBev’s interest in‚ or the bottling operations of‚ its businesses in Zambia‚ Zimbabwe‚ Botswana‚ Swaziland‚ and Lesotho‚ as well as in El Salvador and Honduras.

Transnet said on Thursday its new multiproducts pipeline between Durban and Johannesburg has been upgraded to multi-petroleum product mode. The upgrade means Transnet will also be able to transport two grades of petrol‚ unleaded 93 octane and unleaded 95 octane. The pipeline is projected to pump 7-billion litres of petroleum products in financial 2017-18.

Vunani warned on Wednesday that HEPS would decrease by as much as 41.7% for the six months to end-August compared to the prior period‚ due to a number of rights issues. The group’s share price was unchanged at R2.80‚ after it said the HEPS were expected to be between 6.7c and 9c‚ or a decrease of between 41.7% and 21.7%. The weighted average number of shares in issue of increased to 156-million in 2017‚ from 109-million in the prior period.

Competition Commission on Wednesday dropped its investigation into Aspen for allegedly charging excessive prices‚ because the commission has learnt that the prices of oncology drugs it sold were not high. In June‚ the commission said it was investigating Aspen for ‘suspected abuse of dominance by charging excessive prices in the provision of lifesaving cancer medicines in SA.

Vodacom shares slid as much as 7% on Wednesday after the Competition Commission accused the mobile operator of abusing its dominance in its contract with the Treasury. Vodacom shares on the JSE were down 5.19% to R148.30‚ giving the company a market value of about R255.2bn.

Zeder reported on Wednesday that the value of its agricultural investments declined 9.5% to R13.3bn at the end of August from R14.7bn at the end of February.  It said the value of its 27% holding in Pioneer Foods fell 23% to R7.4bn from R9.5bn over the six months as its Pioneer share price tumbled from a high of R188 in March to about R113 at the end of August. The group’s interim revenue for the six months to end-August fell 9.6% to R4.4bn while net profit more than halved to R114m from R246m, said the group.

Curro said on Tuesday it unbundled its tertiary education arm Stadio into a separate listing‚ which effectively saw shareholders gain 5.3% from Monday’s R39.27 closing price. Curro’s share price was R34.70 and Stadio’s was R6.66‚ giving them a combined value of R41.36. Stadio made its debut on the JSE trading in a range of between R5.55 and R7.75‚ with 740‚363 shares valued at nearly R5m trading, said the group.

Pick n Pay’s said on Monday its share price fell more than 1% ‚ after it warned shareholders that retrenchment costs would drag down its interim HEPS by a slightly bigger margin than previously estimated. It said it expected HEPS for the 26 weeks to August 27 to be at least 19c‚ or 20% lower than the 82.43c reported in the matching period‚ a difference of 2c from its July estimate. Pick n Pay’s share price was down 1.44% to R56.78.

Coal of Africa said on Monday it had secured a buyer for its Mooiplaats Colliery. A consortium of investors known as Mooiplaats Coal Holdings will buy the colliery for R179.9m, it said. Proceeds of the proposed transaction would be used to support the company’s flagship Makhado project.

Sasria said on Monday insurance claims rose 31% last year due to service delivery and university student protests. Total claims amounted to R766m in the year to end-March 2017‚ up from R586m in 2015-16, said the insurer. University protests accounted for R325m — about 42% of the R766m.The underwriting profit declined by 17.2% largely due to the high level of claims. Investment income grew to R437m from R318m.

JSE said on Monday it suspended the listing of WG Wearne after the company's failure to supply its annual financial statements within the required six-month period. The share price of the cement supplier had lost about 80%‚ including 7.14% to 13c on Monday‚ before it was suspended.

Quantum Foods’ share price fell 13% to R2.60 on Monday after it said avian influenza had spread to more of its hen houses in the Western Cape. The company said it had now lost 17% its egg production to the disease‚ but it could make up for some of this by re-opening dormant facilities. The group initially warned shareholders on September 20 that the disease had been confirmed at two of its farms‚ which produced 9% of its eggs.




A2X started competing against the JSE on Friday with three JSE-listed companies using it as a secondary exchange and four stockbrokers offering these shares to their clients. The three companies included African Rainbow Capital Investments, Peregrine Holdings and Coronation Fund Managers. Other stockbrokers supporting A2X on its first trading day were RMB Morgan Stanley‚ Investec Securities and Avior Capital Markets. They will soon be joined by Nedbank Securities‚ SBG Securities and Sinayo Securities‚ said.

The Reserve Bank said on Wednesday SA was experiencing one of the worst growth periods in its history‚ and if the forecasts prove correct‚ the current decade will be the second-worst in the postwar period. The bank calculated that the economic growth rate in 2016 could have been 2.1%‚ instead of the outcome of 0.3%‚ were it not for the decline in confidence‚ which was one of the key reasons SA’s growth failed to follow world growth‚ as it had done in the past. This demonstrated the cost of policy uncertainty and the importance of restoring confidence‚ said the Bank.

Strategic Fuel Fund said on Wednesday the sale of 10-million barrels of SA’s strategic fuel stocks was to be contested in court. The outcome of the case will determine whether the country has access to any strategic stocks at all, said the fund’s CEO Thabane Zulu. He said a legal opinion‚ had been obtained from the legal team on which the court proceedings would be based.

JSE CEO Nicky Newton-King said on Tuesday the most effective way of transforming the profile of stockbroking on the JSE was to reduce the cost of trading. She said to trade on the JSE required a fair amount of capital‚ so the JSE tried to ensure that the capital requirements for stockbrokers were not so onerous as to exclude small‚ black brokers. The major challenge‚ however‚ was to get investment houses and asset managers to use black stockbrokers for their trades, said Newton-King.

Economist Laura Campbell warned on Monday that SA should expect yet another fuel-price increase in November in the light of the combination of rand weakness and a substantially stronger oil price. She said the rand and oil-price trends were expected to persist in the near term. Her warning followed an announcement by the Department of Energy that petrol prices would go up 29c a litre for 95 octane and 25c for 93c. Diesel prices rose by 42c a litre for 0.05% and for 0.005% sulphur content.

Figures from the Department of Trade and Industry on Monday showed that aggregate new vehicle sales came in at 50‚675 units‚ up by 3‚138 units or 7% from the 47‚357 vehicles sold in September last year. New passenger cars sold came in at 33‚669 units‚ a gain of 1‚868 cars or 5.9% compared with the 31‚801 new cars sold in September last year. The National Association of Automobile Manufacturers of SA said encouraging gains were led by the new light commercial vehicle and new car segments. New vehicle exports had also registered strong gains, said the association.

Absa reported on Monday that SA factory managers were slightly less pessimistic in September than in August. The bank's monthly sponsored PMI showed a rise of 44.9 points from 44. Of the main subcomponents‚ the new sales orders index registered the biggest increase in September‚ rising 3.1 points to 43.2‚ said Absa.



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