Cape Times 2021-09-10

Edward West edward.west@inl.co.za SANLAM’S earnings took a big hit from the R10 billion of Covid-19-related mortality claims that it paid out in the six months to June 30, but this was offset by the release of discretionary reserves. “Covid-19 related mortality claims had a significant negative impact on earnings, but this was largely offset by the release of discretionary reserves in the South African life insurance operations,” the group said in its interim results yesterday. Further discretionary reserve releases would be considered for the second half of 2021. “Based on current estimates, the group expects that existing reserves should largely mitigate the Covid-19 related excess mortality impact on operating profit for 2021. There, however, remains significant uncertainty regarding the impact of future waves, possible variants and the progress…

Edward West edward.west@inl.co.za MUSTEK, local assembler of information communication technology (ICT) and home computers, lifted headline earnings a share by a whopping 247.5 percent to 441.81 cents and the dividend by 246 percent to 90c after the group benefited from remote working and learning trends. The share price leapt 3.38 percent to R13.75 by yesterday afternoon, bringing the gain in the price over a year to 96 percent. “We are confident the working and learning from home reality is more than a passing trend. Employees had a glimpse of what their workplaces can be, and most will demand this type of flexibility from their employers in future,” the group said. Revenue increased 25.6 percent to R8.04 billion and gross profit was up 14.8…

Banele Ginindza banele.ginindza@inl.co.za THE SOUTH African liquor industry had haemorrhaged at least R8.5 billion in lost sales plus about 3 000 jobs and still counting from the 4-day trade restrictions imposed on retail liquor stores, it said yesterday. According to research conducted by the Institut de Publique Sondage d’Opinion Secteur South Africa, commissioned by the Consumer Goods Council of South Africa (CGCSA) and the Liquor Traders Association of South Africa (LTASA), liquor retailers have been losing about 50 percent of revenue they would have earned from Thursday to Saturday, yet overhead costs have remained unchanged. In a statement on the research yesterday, liquor retailers said revenue losses for small liquor outlets were as high as 65 percent of weekly turnover between Friday and Sunday. “To put this…

Banele Ginindza banele.ginindza@inl.co.za Subdued sentiment on global markets kept the rand in the red yesterday, putting a slight dampener on the substantial widening in the current account balance of payments, which came in at the largest surplus ever of R343 billion in the second quarter of 2021, advancing from R261bn in the first quarter. The figure was R10bn higher than analysts’ expectations for the quarter, signifying the height in the softening of commodity prices, particularly platinum group of metals. As a ratio of gross domestic product (GDP), the current account surplus widened to 5.6 percent in the second quarter of 2021 from 4.3 percent in the preceding quarter. Investec economist Kamilla Kaplan in a note said export demand for non-commodity goods had also been supported by the…

Philippa Larkin philippa.larkin@inl.co.za THE NOTES leading to Ascendis Health’s important shareholder meeting on October 4 to vote on its re- capitalisation has become a battlefield of vested interests as they eye the remaining value in the group. The major institutional shareholders of Ascendis Health are the International Finance Corporation, holding 12.6 percent and Kefolile Health Investments, holding 11.7 percent. The company leapt into the spotlight last Friday after it quashed take-over rumours, sending its shares spiralling down 10 percent, only on Monday, October 6, for the firm to issue about a 3 000 word SENS statement around the incident citing “representatives of certain investment firms, based in the US (the third party)”, while Ascendis again reminded shareholders that it would be good to vote for the…

Sihle Mlambo The Sefako Makgatho Health Sciences University, Numolux, and China’s Sinovac have partnered to conduct a paediatric vaccine study on Covid-19 vaccines for children and adolescents, aged between six months and 17 years. The study will see more than 2 000 children and teenagers take part in research with seven clinical research sites across the country being utilised. The first child is expected to be vaccinated at the university’s MeCRU Clinical Research Unit on Friday. The children taking part in the trial will receive two doses of Sinovac’s CoronaVac vaccine or a placebo, 27 days apart. “Efficacy assessments to include the surveillance for Covid-19 like symptoms, and the laboratory confirmation of Sars-CoV-2 infection by RT-PCR. “Any confirmed Covid-19 cases will be followed by the investigators until resolution,” said Numolux,…