Star 2023-03-22

TRANSACTION Capital’s share price continued to dive on Monday, falling to an intraday low of 12%, after it said core earnings per share (eps) from continuing operations might drop by up to 46% for the half year ending March 31, this year. On Monday, the shares traded at a low of R10.10 closing the day 7.39% lower at R10.65. and have decreased by 69.04% in the past six months, with the market capitalisation now down to R8.7 billion. Transaction Capital’s share price started dropping last week, wiping billions off its value, following the company releasing a trading statement highlighting problems in the taxi-lending business, SA Taxi. At the time, it warned core earnings per share for the six months to March 31 were expected to fall by more than 20%,…

THE CONTAGION over the US banks collapse continued affecting global markets on Monday, with the South African banks index falling 1.6% to 9 215 index points as investors tried to assess the health of the global banking sector. European bank shares have come under huge selling pressure, notably Credit Suisse, following the collapse of the Silicon Valley Bank and Signature Bank. The market has been sniffing out weaknesses elsewhere after US authorities stepped in to prevent contagion and financial market turbulence, as the sale of the troubled Credit Suisse to rival UBS was not enough to calm markets. Shares for local banks followed their global peers and plunged after the UBS takeover of Credit Suisse wiped out $17.3 billion (R319.3bn) in Credit Suisse AT1 bonds, spurring concerns about…

Police have arrested at least 87 people for public violence-related offences ECONOMIC activity ground to a halt in South Africa on Monday as businesses in major centres closed their doors and the logistics industry was disrupted in response to the national shutdown. The shutdown, which was called for by the EFF, saw thousands of people taking to the streets to protest against crippling power cuts, the rising cost of living, the high unemployment rate, and crime, among other socio-economic concerns. At least 87 people were arrested for public violence-related offences in the nationwide anti-government protests that began before midnight on Sunday. In his weekly newsletter on Monday, President Cyril Ramaphosa reiterated the right of any person or organisation to protest, but said no one should be forced, threatened or intimidated…

THE HIGH COURT Gauteng Division on Monday began the case brought in by the United Democratic Movement (UDM) and other political and civic organisations, which argues the government and power utility Eskom, has violated basic human rights by implementing load shedding that has knocked critical areas of the economy such as hospitals. The matter, set to be heard from Monday to Thursday this week, was adjourned to Wednesday. Advocate Bruce Dyke, representing ActionSA, said the plea from ActionSA and other organisations hinged around the provision of electricity for 85 police stations, 93 hospitals and 23 000 schools badly affected by loadshedding when the lights were switched off. “The Ministry of Health has actually acknowledged that load shedding has impacted public hospitals,” Dyke told the court presided over by Justice…

MERAFE Resources, the junior em- powerment partner in a chrome joint venture with Glencore, said on Monday that attributable ferrochrome production increased marginally by 1%, plagued by electricity supply challenges in the second half of the year. In its results for the year ended December 31, 2022, the group said it produced an attributable 384 000 tons of ferrochrome, from 379 000 tons in the previous year. Merafe reported headline earnings of 56.4 cents a share which compares to 66.8c for 2021, and a 2% decrease in revenue to R7.94 billion. The board declared a final cash dividend of R325 million, nearly 41% lower compared to 2021’s R550m payout. “This amounts to 13c per share before dividend tax and brings the total dividend for the…

SHAREHOLDER sentiment prevails as RCL Foods battles consumer price inflation, strike action and rallies in global agricultural commodity and energy prices. RCL Foods is accusing Breede Coalitions of abusing and profiteering from appraisal rights clauses under the Companies Act stipulations following the company’s repurchase of R2.2 million worth of shares held by the minority shareholder. RCL Foods is a leading local food manufacturer selling products such as chicken, dog food and maize meal. The dispute arose subsequent to the group unwinding its existing black economic transaction and the repurchasing of shares. Earlier this month, RCL Foods chief finance officer, Rob Field, said the company was not declaring a dividend in the interim period for the year ended December 2022 with the goal to to keep preserving capital. The company,…