Cape Times 2024-06-28

GROWTHPOINT Properties plans to spend R2.3 billion to optimise and enhance the value of its portfolio. The group announced it would also dispose of R4bn of assets over the 2024 and 2025 financial years as part of strategy to simplify its business. South Africa’s largest eal estate investment trust (Reit), which also owns commercial property assets in the UK and Central and Eastern Europe, said in a nine-month trading statement that some R1.6bn would be spent on new assets, particularly logistics warehouses for the industrial portfolio, while further environmental, social and governance (ESG) initia- tives would be undertaken. Some R1.7bn was spent on developments and capital expenditure in the nine months to March 31. Given the negative impact of high interest rates, the guidance of a 10% to 12%…

SOUTH Africa has notified the World Trade Organisation (WTO) of its intention to impose a 9% duty on hot-rolled steel products, effective from today, to protect the local industry from a surge in imports. XA Global Trader Advisors said the Gazette Notice was expected imminently. Developing countries would be exempt from this duty and the provisional safeguard measure would last up to 200 days. In February, the South African Iron & Steel Institute (Saisi), on behalf of ArcelorMittal South Africa (Amsa), applied for a safeguard on hot-rolled steel. The International Trade Administration Commission of South Africa then initiated a safeguard investigation into hot-rolled steel. Saisi alleged in its complaint that the Southern African Customs Union industry was experiencing significant harm, causally linked to the recent surge in imports of…

FOREIGN investors could continue dumping billions of rand worth of South Africa’s assets on the market as uncertainty over the formation of the Government of National Unity (GNU) prevails, in spite of having remained bullish in the first quarter of 2024 before the elections. Data from the SA Reserve Bank (SARB) yesterday showed that the country recorded foreign direct investment inflows of R24.4 billion in the first quarter of 2024. According to the SARB’s latest Quarterly Bulletin, this was significantly higher compared to a downwardly revised R2.5bn in the previous three-month period ending December 2023. “The inflow in the first quarter of 2024 largely reflected the acquisition of a domestic publicly listed vehicle tracking company by a foreign company,” said the SARB. In February, Midrand-based fleet management and vehicle-tracking…

THE RAND FELL sharply following reports of continuing disagreement between the DA and President Cyril Ramaphosa about Cabinet posts in the new Government of National Unity (GNU). Financial markets are on edge over the composition of the Cabinet, as it will give an indication of whether the ANC intends to share power meaningfully with parties including the DA, notwithstanding that both parties claim to be more investor friendly. In addition, at the start of this week, emerging market currencies were on the back foot due to a stronger dollar and indications the US Federal Reserve would keep rates higher for longer. Yesterday evening, the rand, which had strengthened to under R18 per dollar last Wednesday following optimism about the announcement of the formation of the GNU, was trading at R18.52…

CONSUMERS will continue to feel price pressure deep into the second half of the year in spite of prices for finished manufactured goods falling more than expected in May, mainly driven by non-metallic mineral pro-ducts prices. Data from Statistics South Africa (StatsSA) yesterday showed that the annual producer price inflation (PPI) detracted from consumer price inflation (CPI) and declined to 4.6% in May, down from a six-month high of 5.1% in April, and below market forecasts of 4.8%. In contrast, this May PPI reading comes on the back of stubbornly high CPI, which remained unchanged at 5.2% in May on higher transport, alcoholic beverages and tobacco prices. StatsSA said the main contributors to the headline PPI annual inflation rate were the 7.3% increase in coke, petroleum, chemical, rubber and plastic…

THE AGRICULTURAL Business Chamber of South Africa (Agbiz) yesterday said the Crop Estimates Committee (CEC) has lifted the 2023/24 summer grains and oilseed harvest by 0.6% from last month to 16 million tons. Agbiz chief economist Wandile Sihlobo said a closer look at the data showed that white and yellow maize harvest could be 6.3 million tons and 7.1 million tons, a 0.1% and 1.3% month-on-month increase, respectively. Sihlobo said these revisions placed the total maize production estimate at 13.4 million tons, up by 0.7% month-on-month. When viewed annually, Sihlobo said white maize harvest was down 26%, with yellow maize down 10% from the 2022/23 season. “The disparity in the crop decline is due to regions where each crop variety is planted, with white maize predominantly…