Cape Times 2021-08-23

Dineo Faku dineo.faku@inl.co.za CAPE-Town based Shoprite, Africa’s biggest retailer, said on Friday that it would acquire Massmart’s wholesale and retail chains for R1.4 billion, beating rival Pick n Pay to the deal, and bolstering its leading position in the discount retail market. Shoprite said the transaction comprised 56 Cambridge Food business and Rhino Cash and Carry business, including 43 adjacent liquor stores, the Fruitspot business and Massfresh Meat business with a total of four facilities, and 12 Masscash Cash and Carry stores. Shoprite chief executive Pieter Engel- brecht said on Friday that the group wanted to combine organic and acquisitive growth as part of the focus on its low-price leadership position. “The rationale for this transaction is not just premised on the fact that, as a result of our…

Siphelele Dludla Siphelele.dludla@inl.co.za The GOVERNMENT’S finances will be boosted further with a R65 billion ($4.16bn) injection as the International Monetary Fund (IMF) Special Drawing Rights (SDRs) become effective today. Earlier this month, the IMF board of governors approved the general allocation of SDRs equivalent of $650bn, the largest IMF emergency currency creation in history, to tackle the Covid-19 global pandemic. The newly created SDR is the first tranche, since the $250bn that was issued soon after the global financial crisis in 2009. The SDR is meant to boost global liquidity and will be credited to IMF member countries in proportion to their existing quotas in the Fund. The IMF said the SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the…

Dineo Faku dineo.faku@inl.co.za DURBAN-based fashion and home retailer Mr Price slumped 6.5 percent on the JSE on Friday as the 50 percent growth in retail sales during the 18 weeks ended 2021 was overshadowed by supply chain disruptions, last month’s mayhem and weak consumer confidence. The share closed at R219.35. Notably, the robust digital trend continued as sales of the group’s online channel increased 46.4 percent over the 2021 financial year contributing 2.9 percent to sales compared with 103.2 percent growth in 2020 and accounting for 1.6 percent of sales. Mr Price, whose retail outlets include Mr Price Sport, Sheet Street and recently acquired Yuppiechef, said significant disruption was caused to its trade and supply chain operations by last month’s civil unrest in parts…

EDWARD WEST edward.west@inl.co.za KAP INDUSTRIAL Holdings, which employs about 19 000 people in a range of sectors that includes automotive components, timber and logistics, reinstated its dividend and lifted operating profit 48 percent to R2.1 billion in the year to June 30. “We are extremely pleased with the results in what was an uncertain, unpredictable environment. We emerged with a stronger balance sheet, strong cash generation and a dividend,” chief executive Gary Chaplin said in a telephone interview on Friday. All the companies in the group performed well, although Unitrans, which had among its operations school bus and corporate transport, was facing a tough environment, he said. He said the strong results in the complex environment were a reflection of the value in the business model and…

Siphelele Dludla siphelele.dludla@inl.co.za UNEMPLOYMENT is forecast to have slightly increased for a second consecutive quarter this year as the Covid-19 extended lockdown restrictions continued to bite on economic activity. In the three months to June, the country was adjusted from alert level 1 lockdown to alert level 4 by the end of the quarter, leaving more sectors to trade under stringent conditions. Statistics SA (StatsSA) will tomorrow release the results of the Quarterly Labour Force Survey for the second quarter of 2021. The official unemployment rate in South Africa now stands at 32.6 percent as more than 7.2 million people are without jobs, mainly the youth aged between 15-34. The economy lost 28 000 jobs in the first quarter of 2021 relative to the fourth quarter of 2020,…

Last WEEK a friend of mine, an astute investor, pointed me to gold and silver price graphs and it is evident that both metals are at major points of resolve. His question was what major move lies ahead – up or down? As a mining analyst many moons ago and investment strategist and fund manager later on, I focused on supply and demand in forecasting metal prices, especially gold. Although I got a somewhat better idea than some economists whose numbers are just thumbsuck, I continued to be perplexed about the relationship between the supply/demand equation and the gold price in terms of US dollars. I experienced a lightbulb moment a few months ago when I discovered that gold was nothing else than a 10-year US Treasury Inflation-linked Security or…