Cape Times 2024-10-04

Precious metals affected, with Harmony Gold decreasing by 3.7% per share and Amplats falling by 3.2% per share South Africa’s stock market experienced a steep decline yesterday, plunging more than 1% on the JSE, as geopolitical tensions fanned a prevailing risk-off sentiment among investors. The JSE’s benchmark index sank by 1.06% to 86 192 index points by lunchtime, marking its lowest level in a week and breaking a two-day streak of gains. This downturn comes amid escalated fears stemming from the Middle East, particularly following Iran’s missile attack on Israel, which has heightened concerns over potential military repercussions and disruptions to vital oil supply routes. Traders are now grappling with the possibility of a broader conflict as the world awaits Israel’s expected response. Mike Gresty, fund manager at Anchor Capital,…

Anglo American Group CEO Duncan Wanblad has confirmed that the mining giant’s unbundling process would be completed by the end of the year. Speaking at the 12th Joburg Indaba via video from London yesterday, Wanblad said the initiative was aimed at enhancing value for shareholders rather than being a reaction to recent takeover bids, particularly the unsolicited approach from Australian mining company BHP in April. Wanblad said the strategic review, intended to unlock value, was initiated before any bid from BHP, reflecting the under-valuation that investors had placed on various segments of Anglo American. “We had started the whole strategic review of the portfolio before the bid, but when the offer came in, we had to accelerate things and that was less than ideal,” he said. Since unveiling the restructuring…

The South African private sector economy is on a recovery trajectory, buoyed by a substantial rise in new work intakes during the third quarter of 2024. Data from the S&P Global South Africa Purchasing Managers’ Index (PMI) released yesterday indicated that business activity expanded for the first time since August 2023, showcasing a collective boost in demand conditions and the first reduction in selling charges in more than four years. David Owen, senior economist at S&P Global Market Intelligence, noted that the upswing in the PMI data offers reassurance about the improving health of the South African economy. The PMI rose to 51.0 in September, up slightly from 50.5 in August, marking an encouraging trend above the neutral mark for two consecutive months. Owen described this growth acceleration as the…

It is a sad indictment on the state of journalism that Daily Maverick continues to slant its Public Investment Corporation (PIC) coverage to further their media smear campaign against Dr Iqbal Survé and Sekunjalo and in doing so tarnishing black excellence. There is only one word for Tim Cohen’s article in Daily Maverick, “After the Bell: The PIC shanks AYO out of the rough, on to the fairway” – ludicrous. Cohen has used the latest PIC annual report as a news point of reference to flog a dead horse – that of the settlement deal between AYO Technology Solutions and the PIC in the Western Cape Division of the High Court on March 24, 2023. The matter is done and dusted, but Cohen via Daily Maverick is set on continuing…

The confidence of CEOs of listed, large private and multinational companies in South Africa recorded a 7% increase in the third quarter of this year, rising to a score of 55.0, according to the Merchantec CEO Confidence Index. This quarterly copyright report which collates the views of CEOs of listed, large private and multinational companies in the country noted that this improvement reflected a cautiously optimistic outlook among South African business leaders, spurred by positive developments in the formation of the business-friendly Government of National Unity, and the recent reliable electricity generation. However, CEOs realise there is still a lot of work to be done to reduce Government spending and inefficiencies, interest rates, crime and policy uncertainties. Looking ahead, the majority of CEOs anticipate a gross domestic product (GDP) growth…

South Africans’ demand for credit increased over the last quarter, with the Gen Z cohort (people born between 1995 and 2010) driving growth, particularly in the unsecured credit market. This is according to the “TransUnion Industry Insights Report: Quarterly Review of Consumer Credit Trends” for the second quarter of the year. Collectively, South Africans owed about R2.37 trillion in household debt at the end of June, according to the report, up 3.7% year-on-year. About half of this money (R1.2tr) is in housing loans; about 24% (R580 billion) is in vehicle finance; and the remaining 26% (R626bn) is in unsecured debt. The average new vehicle loan amount in the second quarter was R394 670 and the average new home loan amount was R940 675. Credit for consumption Unlike housing and vehicle…