Friday, 23rd June 2023
Market movers for today – and, below, the week. Provided by Sharenet, platinum sponsor of the Fantasy Fund Manager game.
Parliament wants clarity from Zondo on state capture criticism, requests meeting
Chief Justice Raymond Zondo stated that Parliament would fail to prevent another state capture, leading to Parliament expressing shock and objection while requesting an urgent meeting with Zondo. The DA supported the Chief Justice’s statement, claiming that the ANC has hindered attempts to reform the legislature. National Assembly Speaker Nosiviwe Mapisa-Nqakula and National Council of Provinces Chairperson Amos Masondo have formally requested a meeting with Zondo to address the concerns between the judiciary and the legislature. The meeting aims to strengthen the relationship and foster public trust in the democratic system.
Titanic sub “implodes” killing its five passengers
Five passengers on the Titan submersible diving to view the Titanic wreckage died in a catastrophic implosion, with debris found 1,600 feet from the bow of the ship. The US Navy detected an acoustic signature consistent with an implosion earlier but deemed it inconclusive. The investigation will continue to determine the timeline and cause of the incident. The international search effort was praised, and condolences were offered by various organizations and governments for the lives lost in the tragedy. British billionaire Hamish Harding, one of Pakistan’s richest men, businessman Shahzada Dawood and his son Suleman Dawood, French deep sea explorer and Titanic expert Paul-Henri Nargeolet and OceanGate CEO Stockton Rush died in the submersible.
Update on FFM leaderboard
Armand du Toit has opened up a useful lead in the Fantasy Fund Manager competition league for BizNews Premium members, going almost three percentage points clear of his nearest competitor. Of the BizNews staffers Alec Hogg is the only one with a positive return and this closest to the leaders in 13th; Clive Eksteen is mounting his challenge (6th in the past week) and is 21st while Stuart Lowman is in a creditable 32nd of the 98 contestants, almost a dozen of whom have been biding their time by not yet selecting a portfolio. If you haven’t yet joined the FFM fun, click here.
Thursday, 22 June 2023
Today’s market movers from Sharenet, platinum sponsor of the Fantasy Fund Manager game. Click here to join in the fun.
South Africa seeks $1.5bn water fund with green climate finance
The Development Bank of Southern Africa (DBSA) has applied for $235 million from the Green Climate Fund (GCF) to create a $1.5 billion water infrastructure fund. The fund, known as the Water Reuse Programme, aims to address South Africa’s water scarcity and improve resilience to climate change. The DBSA plans to focus on projects such as reducing water losses, treating wastewater for industrial and agricultural use, and implementing water desalination plants. The GCF funding is expected to attract private sector investment and finance projects that could increase daily water supply and benefit millions of people. -Bloomberg
Stocks slump as hawkish central banks trigger the market decline
Global stocks and US equity futures experienced a decline as central banks in the US, Norway, and the UK adopted a hawkish stance, dampening market optimism. The European equity gauge fell almost 1%, extending a four-day decline, with all industry sectors in the red. Federal Reserve Chair Jerome Powell’s hawkish warnings to Congress contributed to the sell-off on Wall Street. Central banks worldwide are increasing interest rates to combat inflation, challenging expectations of a slowdown. Investors are concerned that central banks prioritise fighting inflation over economic activity, potentially leading to a recession. -Bloomberg
Loadshedding costs Mr Price approximately R1 billion in revenue for the fiscal year as power outages severely impact operations
South African retailer Mr Price reported a revenue loss of around R1 billion for the full financial year ending April 2023 due to load shedding. The company’s core trading divisions, especially during the festive season, were severely affected by power outages. Loadshedding escalated to unprecedented levels after September 2022, causing an estimated loss of 318,000 trading hours and decreased consumer confidence. Mr Price plans to achieve 100% store coverage with backup power by June 2023 and has seen a 5% growth differential in sales with post-backup power systems. Despite challenges, the company’s revenue grew 17% to R32.9 billion.
Race against time – search for missing Titanic submersible calls in lifting gearSearch teams in the North Atlantic have called in specialist deep-sea recovery equipment as they desperately try to locate a missing submersible near the wreck of the Titanic. The crew, consisting of five individuals, is running out of air and time. The US Navy is sending a lifting system capable of recovering sunken objects from deep waters. Despite unidentified underwater noises detected recently, the search has yet to locate the submersible. Additional vessels and equipment are joining the search with hopes of rescuing the crew before their air supplies are depleted. -Bloomberg
South Africa finalising new loadshedding stages amidst Eskom grid concerns
The National Rationalised Specifications (NRS) Association of South Africa is finalising new loadshedding stages for the country. The revised document, NRS 048-9 Edition 3, needs consensus from the Work Group before being sent to energy regulator Nersa for approval, as reported by BusinessTech. The updated stages, going up to stage 16, are proactive measures to address the state of the Eskom grid, but not an indication that the country will reach those levels of outages. The new specifications split the entire power baseload into loadshedding stages, removing contingency plans for stages beyond 8. The changes aim to provide a structured approach to reducing the load base.
South African central bank urges rate hikes to control inflation despite potential financial distress
South African Reserve Bank Governor Lesetja Kganyago emphasised the need for increasing borrowing costs to combat sticky inflation, even if it leads to financial difficulties. In an interview, he stated that addressing the rising cost of living was a priority, and failure to act could result in more severe consequences. The central bank’s monetary policy committee has consistently raised the benchmark interest rate in recent meetings to bring inflation back to its target range of 4.5%. However, with inflation slowing to a 13-month low of 6.3% in May, the pressure to continue rate hikes has eased. Kganyago acknowledged the country’s economic challenges due to power cuts and logistics issues but highlighted investments in renewable energy as a sign of resilience. Additionally, efforts are underway to address shortcomings in combating illicit financial flows and ensure continued duty-free access to US markets. -Bloomberg
Other highlights:
There is a 24-month horizon for the country to be removed from the Financial Action Task Force’s so-called gray list denoting nations with shortcomings in tackling illicit financial flows.
The Reserve Bank is working with the National Treasury and other government agencies to make sure that shortcomings identified by the FATF are addressed.
Kganyago says he’s got “no doubt that government’s engagement with the US” means South Africa will retain its duty-free access to American markets through the African Growth and Opportunity Act.
Wednesday, 21 June 2023
For the second successive session, gold shares took a pasting on the JSE. Here are the biggest movers among the Top 100 companies, provided by Sharenet, platinum sponsors of the Fantasy Fund Manager game.
Steinhoff shares tank after Dutch court rejects alternative proposal by shareholder body SdK
The District Court of Amsterdam, Netherlands, has confirmed the WHOA Restructuring Plan propsoed by Steinhoff management and rejected a shareholder’s petition to refuse the confirmation. This means that the WHOA Effective Date has occurred, and the group and all stakeholders are now bound by the terms of the plan, regardless of their vote. Shareholders voted heavily against the proposal. The confirmation order is available on Steinhoff International’s website. SIHNV and its subsidiaries will now move forward to implement the plan, which is projected to conclude by June 30, 2023. The Steinhoff share price fell from almost 30c to 11c on the news. The shares have fallen 95% in the past year, and will disappear off the JSE at the end of June.
Former CEO of scandal-ridden Steinhoff, Markus Jooste, issued arrest warrant by German court
Markus Jooste, the former CEO of troubled retailer Steinhoff International Holdings NV, has been issued an arrest warrant by a German court after failing to appear for trial. The Regional Court of Oldenburg issued the warrant following Jooste’s absence from the trial in April. His attorney stated that Jooste couldn’t travel due to a passport restriction imposed by South African authorities, where he faces more significant investigations. Steinhoff has faced financial challenges since auditors refused to approve its accounts over five years ago, leading to Jooste’s resignation and subsequent legal scrutiny in Europe and South Africa.
EU faces legal challenges in seizing €200 billion Russian assets, explores temporary use instead
The European Union (EU) has determined that it cannot legally confiscate frozen Russian assets and is instead focusing on utilising them temporarily, according to a document obtained by Bloomberg. The EU is exploring options to channel over €200 billion in frozen Russian central bank assets to Ukraine. EU leaders are expected to seek a mandate to pursue this policy, while a working party assesses the legal avenues available. Major concerns include potential retaliation by Russia against global banks and the risk of negative returns if actively managing the assets. The EU aims to propose a plan before its summer break in mid-July. -Bloomberg
Noises detected in search for Titanic sub as oxygen dwindles
Underwater noises have been detected in the search for a missing submersible near the Titanic wreck. The vessel, named Titan, has only about one day’s worth of oxygen remaining. Canadian planes with sonar capabilities picked up the sounds, and search teams are trying to determine their origin. Remotely operated vehicles are being relocated, and data from the aircraft has been shared with US Navy experts for future searches. The search and rescue effort has become an international operation, with US and Canadian authorities, France, and privately-owned vessels joining the mission. There are hopes that signs of life have been detected, but details are scarce. -Bloomberg
Credit Suisse bondholders sue former executives, blaming New York bankers for demise
A group of European bondholders of Credit Suisse have filed a lawsuit against the bank’s former executives, alleging a “broken culture” and a series of scandals linked to its New York-based investment banking division. The bondholders claim that self-serving executives pursued risky deals for short-term gains and bonuses, engaging in unethical and illegal practices to attract and retain high-revenue clients. The lawsuit, filed in Brooklyn, names several American and European defendants, including former CEOs Brady W. Dougan and Tidjane Thiam. Credit Suisse was taken over by UBS Group AG in a government-backed deal after facing significant client withdrawals. -Bloomberg
South African inflation slows to 13-month low, relieving pressure on SARB to raise rates
South African inflation reached a 13-month low in May, coming in lower than expected, which eases the pressure on the central bank to raise interest rates further. The annual inflation rate dropped to 6.3% from 6.8% in April, surpassing the median estimate of 6.5%. The central bank’s objective is to bring inflation back to the 4.5% midpoint of its target range. Economists believe that no further rate hikes are needed in the current cycle. Forward-rate agreements indicate a more than 50% chance of a rate increase at the central bank’s next decision in July. -Bloomberg
Standard Bank reports substantial increase in credit impairments amid challenging economic environment in South Africa
Standard Bank has witnessed a significant surge in credit impairments during the first five months of 2023 due to the difficult economic conditions prevailing in South Africa, as reported by Business Day. The bank highlighted the global economic and geopolitical volatility, with slowing global growth resulting from high inflation and interest rates. The bank also expressed concerns about elevated public debt ratios to GDP, posing challenges for policymakers amidst rising interest rates and slowing revenue collections in African nations. Despite these challenges, Standard Bank reported healthy results for the period, with notable growth in its Africa Regions franchise. However, credit impairment charges were nearly 50% higher than the previous year, mainly driven by larger lending books, consumer strain in South Africa, and increased sovereign debt risk across Africa.
South Africa central bank enhances model for improved economic forecasts
The South African Reserve Bank has announced improvements to its quarterly projection model, resulting in more accurate forecasts for inflation and the benchmark interest rate. The enhanced model, known as QPM, outperformed the previous version, particularly in predicting headline inflation, core goods inflation, food inflation, and the repo rate. The updated model also revealed that the impact of interest rate increases on inflation was smaller and less persistent compared to the old model. Changes in the revamped model include emphasising the inflation target midpoint, incorporating a growth gap, and accounting for various factors affecting inflation. -Bloomberg
Netherlands and Denmark to establish $1 billion hydrogen fund for South African renewable energy projects
The Netherlands and Denmark are partnering to create a $1 billion green hydrogen fund to support investment in renewable energy projects in South Africa. State-backed firms from the Netherlands, along with South African financial institutions and strategic investors, will contribute to the SA-H2 fund. The fund aims to leverage private-sector investment and capitalise on South Africa’s abundant wind and solar resources to position the country as a significant global player in the hydrogen market. Additionally, other collaborations between the three countries, such as a water infrastructure fund and a climate-smart agriculture hub, were announced at the event. -Bloomberg
Tuesday, 20 June 2023
Today’s major movers on the JSE – from Sharenet, platinum sponsor of the Fantasy Fund Manager game. Join the fun – click here.
South Africa’s commercial properties could alleviate power crisis with rooftop solar, study finds
South Africa’s commercial property industry has the potential to address the country’s power crisis by utilising the vast rooftop space for solar energy generation, according to a study by Gmaven. The study revealed that the rooftops of retail, office, and industrial properties in the country’s major cities have a combined area of 68.7 million square meters without solar panels. Installing solar panels on two-thirds of these properties would cost around $3 billion but could lead to annual savings of $850 million. The government views rooftop solar as a solution to the ongoing power crisis, characterised by frequent blackouts. -Bloomberg
Suicide and homicide rates among young Americans soar to highest levels in a decade
Statista reports that the suicide and homicide rates among young Americans have reached the highest levels in a decade, according to recent data from the Centers for Disease Control and Prevention. The number of suicides and homicides per 100,000 individuals in the 10 to 24 age group was 11 and 10.7, respectively 2021. Suicide rates have steadily increased since 2017, while the homicide rate in 2021 is the highest since 1997. However, the current homicide rates for young Americans are still lower than the peak in the early 1990s. –Statista
Search underway for missing Titanic-wreck submersible with five crew
A search operation is underway in the North Atlantic to locate a submersible diving vessel carrying five individuals that went missing during an expedition to view the Titanic shipwreck. The US Coast Guard received a distress call from the submersible’s command ship, the Polar Prince, reporting a loss of contact with the vessel. Search efforts involve the deployment of a C-130 plane and a Canadian P-8 Poseidon aircraft. OceanGate Expeditions, the operator of the expedition, is working to ensure the crew’s safe return. The group includes Hamish Harding, founder of investment firm Action Group and an avid adventurer. The 58-year-old Briton holds three Guinness World Records, including the longest time spent traversing the deepest part of the ocean — the Mariana Trench — on a single dive, and the fastest navigation of Earth via the North and South Poles by plane. Others on the missing Titan vessel include Stockton Rush, founder of OceanGate Expeditions, the company that put on the trip to the Titanic. Shahzada Dawood and his son Suleman, members of one of the most prominent business families in Pakistan, are also on board, their relatives confirmed in a statement. The pilot of the sub is Frenchman Paul Henry Nargeolet, according to reports. -Bloomberg
Chinese tech stocks rally, boosting optimism and narrowing gap with US rivals
Chinese tech stocks are experiencing a world-beating rally, igniting hopes of a reversal in the sector’s fortunes. These stocks have outperformed their own market and narrowed the gap with American rivals. Factors contributing to the optimism include attractive valuations compared to US peers, improved earnings, strong sales data from a major shopping festival, and easing US-China tensions. While concerns about growth potential and the macro economy persist, the recent rally has prompted some investors to reevaluate the stocks. Analysts are noting improving fundamentals and a more favourable regulatory environment, but cautious investor sentiment has held back stock price performance. -Bloomberg
Crypto Entrepreneur Do Kwon receives four-month sentence in Montenegro for forged passport
Do Kwon, co-founder of Terraform Labs and a crypto entrepreneur facing fraud charges in the US and South Korea, has been sentenced to four months in prison by a Montenegrin court. Kwon and Han Chang-joon, Terraform Labs’ former CFO, were convicted of attempting to travel with forged passports. The arrest occurred in March when the two were trying to board a private jet to Dubai. Kwon claims he obtained the passports in Singapore through an agency and believed them to be genuine. Both the US and South Korea are seeking Kwon’s extradition. -Bloomberg
South Africa’s only driving license card machine operational again after technical breakdown
South Africa’s Department of Transport (DoT) has announced that the country’s sole driving license card machine is back in operation following a technical breakdown during routine maintenance. The DoT and Driving Licence Card Account (DLCA) now face a backlog of 350,000 cards awaiting printing, but they are committed to clearing it by August 2023. The machine’s output has been increased from 60,000 to 120,000 cards per week. Plans are underway to introduce a new driver’s licence card, along with new card production machines, before the end of the current financial year, as reported by MyBroadband.
Starlink kit provides reliable high-speed internet in South African wilderness
South African households facing internet outages during power cuts and campers seeking fast internet in remote areas can benefit from SpaceX’s Starlink kit. Despite not being officially supported in South Africa, MyBroadband tested the service and achieved speeds over 100Mbps in rural regions like the Northern Cape. In a trial at Pilanesberg Game Reserve, the Starlink kit provided consistent internet connectivity even when cellular networks were down. With a one-time cost of $657.82 (R11,966) and relatively low power consumption, the Starlink kit proves to be a worthwhile investment for reliable and high-speed internet access in the bushveld.
Japanese trading companies witness record highs as Warren Buffett boosts holdings
Japanese trading companies are experiencing a surge in target prices as Warren Buffett’s increased holdings drive their shares to record highs. Among Japan’s largest companies, four of the top 10 firms with the steepest target increases are trading houses. The Topix Wholesale Trade Index, including the five major trading companies, emerged as the top-performing sector, following Berkshire Hathaway’s announcement of raising its stake in these firms to an average of over 8.5%. Analysts have been quick to raise their price targets, with Mitsubishi Corp., the largest trading firm, seeing an 18% increase in its target price over the past month. The interest from Buffett indicates his confidence in Japanese value stocks and the diversified business acumen of these trading companies. -Bloomberg
Monday, 19 June 2023
Yoga provides relief from fatigue and inflammation for cancer survivors, study reveals
Yoga has been found to alleviate cancer-related fatigue and lower inflammation in older cancer survivors, according to recent research. The University of Rochester Medical Center conducted a study with 173 cancer survivors, showing that those who participated in yoga reported significant improvements in fatigue and quality of life compared to a control group. Another study involving 502 cancer survivors found that yoga participants had lower levels of pro-inflammatory markers. Additionally, research from the Instituto de Medicina Integral revealed that older adults with a sedentary lifestyle at the time of cancer diagnosis face a higher risk of mortality. –MedicalNewsToday
Today’s top moving shares among the JSE’s 100 most valuable companies, from Sharenet, platinum sponsor of the Fantasy Fund Manager game.
Novus passes dividend after profits collapse, cash falls almost R200m
Printing group Novus’s bottom line dropped from headline earnings of 53c a share to a loss of 7c in the year to end March. No dividend has been declared. Looking ahead the group says despite a challenging year, it acquired an educational content business, spending the final months integrating it. The division is expected to perform at historic profit levels in FY2024. The Group is adjusting hedging strategies due to exchange rate volatility and anticipates reducing paper stock levels by the end of FY2024. Although higher paper prices will impact short-term profitability, the Group remains confident in its Print business model. Leaner organizational structures and initiatives to mitigate loadshedding costs are expected to improve operating profit. The sale of the Novus Print Linbro Park property will boost cash flow in FY2024.
Russia is recruiting soldiers from Cuba whose Government keeps most of their $2 000 fee
Spanish langiage website infobae.com says Russia is recruiting Cubans to bolster its army. It says the recruits are enticed by the opportunity to fast-track Russian citizenship and receive financial incentives. However, it is suspected that the recruitment of Cuban soldiers is not driven by loyalty to Russia, but rather by a secret alliance between the two regimes. Human rights organizations have raised concerns about Cuba’s direct involvement in the war in Ukraine through the deployment of soldiers. The Cuban government is reportedly providing mercenaries to Russia in exchange for a portion of their salaries. The recruitment process raises questions about the legality and true motivations behind the Cuban soldiers’ involvement in the conflict. Click here for the full story.
BBC puts its spotlight on SA water problems, focusing on Pretoria
The BBC’s website reports that South Africa’s water crisis is driving the affluent residents of Pretoria to dig private boreholes to secure their water supply amidst regular electricity blackouts. The country’s water industry faces multiple problems, including leaky infrastructure, sewage issues, and inadequate water treatment. The collapsing water sector has led to public health consequences, such as a cholera outbreak. The lack of clean drinking water affects various regions, exposing residents to health risks. Experts recommend fixing leaks, investing in infrastructure maintenance, and implementing regular water testing to improve the water supply. However, the crisis also highlights the social inequality and environmental concerns associated with drilling private boreholes. Click here to read the full story.
New study reveals altered gut bacteria as potential biomarker for preclinical Alzheimer’s disease
Medscape reports that a recent study has discovered notable differences in the composition of gut bacteria between individuals with preclinical Alzheimer’s disease (AD) and those without the condition. These findings have significant implications, as they could pave the way for utilising gut microbiome analysis to identify individuals at a higher risk of developing dementia. –BizNews.com
Telkom reports financial distress as net income plummets by 84.7% and impairment losses total R13 billion
Telkom’s financial results for the year ending March 31, 2023, reveal a troubled company with no clear plans for improvement. While revenue remained steady at R43.14 billion, net income dropped by 84.7%, reaching R346 million. The company incurred a significant impairment loss of R13 billion on cash-generating units, leading to a net loss of R9.97 billion. Telkom’s total asset value and equity also declined, potentially affecting its share price. The company’s decision to exclude the impairment loss from the income statement raises questions.
Taiwan Semiconductor Manufacturing Co. reaches $500 billion market cap amidst surge in AI demand
Taiwan Semiconductor Manufacturing Co. (TSMC) has regained its $500 billion market capitalisation as investors increase their bets on technology leaders positioned to benefit from an anticipated AI boom. TSMC’s shares rose driven by optimism that the chip downturn caused by the pandemic is nearing its end. The company’s stock has gained 32% in 2023, solidifying its position among the world’s top 10 most valuable corporations. Investors are flocking to stocks like Nvidia and Oracle, seeing them as well-positioned to meet the rising demand for chips, computing power, and storage necessary for AI services. Morgan Stanley has raised TSMC’s price target, citing the demand for energy-efficient and low-cost AI custom chip designs. Despite the AI frenzy, concerns remain about the monetisation of AI services. TSMC, while acknowledging its potential role in AI, remains cautious about the outlook for the smartphone market, a significant source of its revenue. The chip industry’s slump may not have hit rock bottom yet, but TSMC executives anticipate a gradual recovery in the second half of this year and a return to growth in 2024. The company is also facing challenges in meeting the demand for advanced chips due to a surge in AI-related demand, and a shortage of graphics processors (GPUs) is expected to persist until late 2023. -Bloomberg
Overseas investors show renewed interest in Japan’s startups as China tech crackdown spurs reevaluation
Early-stage investor Coral Capital Inc. CEO James Riney suggests that renewed overseas investor interest in Japan could benefit the country’s overlooked startups and defy the global venture capital slump. Concerns over sudden tech crackdowns in China are prompting investors to reconsider Tokyo’s slower pace of change. Warren Buffett’s reallocation of Asian portfolios to Japan has attracted attention, leading to increased focus on different asset classes, including private equity and venture capital. Japan’s Prime Minister Fumio Kishida aims to boost investment in startups tenfold to ¥10 trillion ($70 billion) over five years. Although Japan lags behind the US and China in nurturing startups, tax incentives and more funding options could attract overseas investment. Despite a decline in valuations globally, Japan’s startup ecosystem has shown resilience, with record fundraising in 2022. -Bloomberg
President Biden stresses Ukraine’s need to meet NATO standards
President Joe Biden said he wouldn’t support easing barriers for Ukraine to join NATO, saying the war-torn country has to “meet the same standards” as other nations in the transatlantic alliance. “They’ve done everything related to demonstrating the ability to coordinate militarily, but there’s a whole issue of, is their system secure?” Biden told reporters as he prepared to board Air Force One. “Does it meet all the standards everyone, every other nation in NATO, does? I think it will. I think it can. But it’s not automatic.” Kyiv’s troops made gains on at least three fronts on Friday as they press on with what’s expected to be a lengthy counteroffensive in the east and south. Deputy Defense Minister Hanna Mailer said Ukraine had advanced as much as 2 kilometers in the south. Ukraine’s defense ministry repeated its urgent call for high-precision, long-range weapons. -Bloomberg
Barrick Gold shifts focus to copper amid declining gold production
Barrick Gold Corp., a leading gold producer, is increasingly focusing on copper as its interest in a potential takeover of copper miner First Quantum Minerals Ltd. demonstrates. Barrick’s gold production has declined to multi-decade lows, while its rival Newmont Corp. recently announced a significant acquisition that surpasses Barrick’s gold capabilities. Barrick sees copper as a strategic commodity linked to the demand for electrification, and it is actively seeking copper deposits in various regions. CEO Mark Bristow believes that including copper in the company’s portfolio is crucial for remaining relevant in the mining industry. Barrick’s emphasis on copper aligns with concerns about future copper shortages due to increasing demand from electric vehicles, renewable energy, and infrastructure projects. Bristow’s willingness to invest in riskier regions gives Barrick an advantage over competitors, and the company’s interest in First Quantum Minerals reflects its strategic shift towards copper. -Bloomberg
Stor-Age expects steady FY24, but shares drop 4% after results released this morning
SA’s largest self-storage company Store-Age, disappointed the market with this morning’s numbers for the year to end March, with the share price dropping 4%. Its dividend payout for the year rose 5.6% with a final of 58c a share declared today. SA occupancy was at 92% and UK at 85%. Six developments are scheduled for completion in FY24 – three each in SA and the UK. Looking ahead to the fiscal year 2024, the company says while higher interest rates may affect earnings growth, it expects additional revenue growth from its third-party management platform. The board anticipates a dividend per share between 115 and 121 cents for FY24, assuming stable demand for self-storage, growth in occupancy and rental rates, and no significant deterioration in the macroeconomic environment.
Omnia disappoints, price falls 5% despite divi hiked 36%
In year to end March financials released this morning Omnia, a diversified chemicals group listed on the JSE, reported that despite a challenging operating environment, its revenue, operating profit, and EBITDA growth demonstrated resilience. Investors were expecting more, however, dropping the share price 5% on the news. The Agriculture segment saw increased revenue, while the Mining segment delivered strong results due to higher commodity prices. The Chemicals segment faced challenges but focused on strategic growth sectors. Omnia emphasized its commitment to sustainability, safety, and reducing its environmental footprint through initiatives such as water treatment plants and solar energy projects. The company aims to optimize operations, enhance liquidity management, and expand its international footprint. Revenue rose 24% to R26.6bn, operating profit was 19% higher and the company declared a 36% higher dividend of 375c a share.
Cyril’s protectors were warned about problems in Poland
News24’s assistant editor Pieter du Toit reported from Warsaw that SA Air Force officials warned the Presidential Protection Service (PPS) they needed customs clearance to transport weaponry to Poland for President Cyril Ramaphosa’s visit to Ukraine and Russia. However, their concerns were ignored. The PPS, along with other security personnel and journalists, ended up stranded on an SAA charter flight for over 26 hours due to logistical failures. The flight to Russia was also denied clearance, resulting in the return of the plane to South Africa without completing any missions. The fiasco, which News24 says will cost the taxpayer between R14m and R16m, highlights the South African government’s chaotic travel arrangements and lack of planning. DA Leader John Steenhuisen says he will be raising the issue in Parliament.
African leaders mediate talks with Putin in effort to end Ukraine War
A delegation of African heads of state and officials met with Russian President Vladimir Putin in St. Petersburg to mediate efforts towards resolving Russia’s war in Ukraine. The meeting followed talks with Ukrainian President Volodymyr Zelenskiy in Kyiv. South African President Cyril Ramaphosa emphasized the need for negotiations and ending the war, presenting 10 key points including de-escalation, diplomacy, and recognition of sovereignty. However, achieving a peace deal remains challenging, with Zelenskiy rejecting any territory cessions and Putin unlikely to agree to troop withdrawal conditions. Africa, affected by the conflict’s trade disruptions, aims to stay neutral while intervening.
Thursday, 15th June 2023
SA extends ban on scrap-metal exports to combat theft and vandalism
South Africa has extended the ban on scrap-metal exports for another six months in an effort to combat theft and vandalism of public infrastructure. Trade and Industry Minister Ebrahim Patel has directed the International Trade and Administration Commission not to accept or process export permit applications for ferrous and non-ferrous waste and scrap metal. Copper cable theft has significantly impacted the economy, causing power cuts and disruptions in rail lines. Critics argue that using trade policy to address theft is inappropriate and could potentially violate World Trade Organization guidelines. -Bloomberg
Eskom demands immediate payment as City of Tshwane’s debt surges to R1.9 Billion
Eskom has revealed that the City of Tshwane’s debt to the company has reached R1.9 billion as of June 9, 2023. The city’s March invoice was short-paid by R179 million, and no payments have been made for April or May, as reported by MyBroadBand. Eskom, which lacks the financial capacity to continue supplying bulk electricity without payment, has urged Tshwane to settle its outstanding invoices. The utility is now considering legal action to recover the debt. This is not the first time Tshwane has faced criticism from Eskom over non-payment of electricity bills.
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