Star 2022-05-06

SOUTH African markets and the rand remained subdued yesterday as investors digested the US Federal Reserve’s decision to raise interest rates to curb historic high inflation, while striking a less hawkish tone regarding future hikes. The US Fed raised interest rates by half-a-percentage point last night, as was expected by most commentators. It was the most significant hike in 22 years, though the Fed dismissed the likelihood of larger hikes going forward. The JSE All Share Index fell by 0.96 percent, dipping below 70 000 index points to 69 682 points, the lowest in more than a week, dragged down by commodity-linked stocks and Naspers. Investec chief economist Annabel Bishop said the tone of the Fed remained hawkish, comparable to the last meeting, and did not…

SIBANYE-STILLWATER, a precious metals producer, flagged that its core profit dropped about a third in its first quarter to end-March, as it deals with a wage strike and economic uncertainty. The group, which said the operating environment during 2022 had been characterised by socio-political and economic uncertainty, saw its share price drop yesterday by almost 8 percent in the morning trade following its release of an operating update for the quarter ended March 31, 2022. By 5pm the share closed 7.80 percent lower at R49.57. Sibanye’s first-quarter gold output dropped by 45 percent to about 137 000 ounces as the company deals with a two-month-old strike and safety issues. The company said yesterday it had suspended output guidance for the operations. Its first-quarter earnings before interest,…

FUEL prices in South Africa could increase drastically in June as the government’s short-term relief measures come to an end this month, while crude oil prices remain elevated above $100 (R1 571) per barrel due to the ongoing war in Ukraine. Last month, the government announced a two-month reprieve from the R1.50 per litre decrease in the general fuel levy as the basic price of petrol was threatening to rise above R23 a litre for the first time. Economist Professor Heinrich Bohlmann yesterday said that the end of the temporary intervention could mean a significant petrol price hike was looming for South Africa in June. Speaking at the 4th annual Academy of Sciences Business Leadership Forum, the associate professor at the University of Pretoria said the war in Ukraine…

MONDI, the multinational packaging and paper group, is divesting of its R11.4 billion operations in Russia, the group said in a quarterly update yesterday. “The board has decided to divest the group’s Russian assets. The divestment process for these significant assets is operationally and structurally complex and is being undertaken in an evolving political and regulatory environment,” the group said. There was no certainty when a transaction would be completed or as to the structure of any possible transaction, it said. The net asset value of Mondi’s Russian operations was €687 million (R11.38 billion) as at December 31, 2021. “The Russian businesses have, to date, managed supply chain constraints. However, the situation remains fluid, with interruptions to pulp and paper production possible going forward. “All significant capital expenditure…

GLOBAL beer and beverages group Anheuser-Busch InBev lifted revenues 11.1 percent in its first quarter to March 31 after growing the hectolitres (hl) it sold by 7.8 percent compared with the same time last year. Topline growth consisted of a mix of 2.8 percent volume and 7.8 percent revenue per hl growth, driven by revenue management initiatives and ongoing premiumisation, chief executive Michel Doukeris said in a statement yesterday. “Relentless execution of strategy and accelerated digital transformation drove momentum in the first quarter. “Our teams continued to meet the moment in this dynamic operating environment,” he said. The group’s mainstream port- folio reported high single-digit revenue growth and outperformed the industry across most of the group’s main markets, according to the group’s estimates. The non-alcoholic beer…

SOUTH Africa-focused diversified real estate investment trust (Reit), Dipula Income Fund, said its defensive retail portfolio performed well through challenging trading conditions and it paid out a B-share distribution of 61.97 cents per share for the six months to February 28. “Following shareholders’approval to simplify the group’s capital structure, this is the last time the dividend will be paid to the existing formula. “We expect the scheme to be implemented immediately after the dividend payment on June 7 this year,” chief executive Izak Petersen said. He said the plan to have only one class of shares would open opportunities that had in the past been denied to the group due to its dual share structure. Dipula will buy back and cancel all its issued A shares at a swop…