Star 2021-08-16

Massmart shares slump on concerns of slow return to profitability Dineo Faku dineo.faku@inl.co.za GIANT retailer Massmart took an 11 percent knock on the JSE on Friday amid concerns about the slow progress in returning the group to profitability during the 26 weeks ended June 2021 despite an increase in sales during the period under review. The shares closed the day 9.14 percent lower at R54.95. Massmart, a subsidiary of US multinational retailer Walmart, told investors that total sales amounted to R41.3 billion, representing an increase of 4.4 percent on the same period last year. It expected headline losses to reduce to R700 million from a R1bn headline loss a year earlier. It also said total sales from Game had fallen to R7.6bn, down 7.6…

Siphelele Dludla siphelele.dludla@inl.co.za HOPES for faster economic activity were dashed on Friday when the Department of Health gave a strong indication that lockdown restrictions would remain in place for much longer. Health Minister Dr Joe Phaahla said he would not recommend the relaxation of lockdown to a lower level in spite of declining Covid-19 infections. Phaahla said this was not the time for South Africa to lower its guard against the pandemic, encouraging more people to vaccinate as the fourth wave was predicted later this year. “The Department of Health will in no way recommend to the National Coronavirus Command Council to lower the restrictions. The department will recommend remaining at level 3,” he said. More than 9.2 million people have been vaccinated, with at least 4 million people…

SAA preens wings as unions grit their teeth Banele Ginindza banele.ginindza@inl.co.za National carrier South African Airways (SAA), 51 percent privately owned by the Takatso Consortium, telegraphed its return to the skies possibly in early September with the arrival of two Airbus 320s from Abu Dhabi to muscle back market share from rivals FlySafair and Airlink. Sources said the aircraft, each with the capacity to carry 138 passengers, will spearhead the airline’s return on the domestic market between Johannesburg and Cape Town, as well as the Durban route, in its first forays. The airline said the aircraft, which were among those sent back to lessors, were placed in storage and given six-year maintenance checks in Abu Dhabi during the airline’s time in business rescue, and had now been given “rigorous…

Port Terminals give citrus growers the green light for packing Given Majola given.majola@inl.co.za Transnet Port Terminals (TPT) were now resourced and geared to handle arriving volumes of citrus across its network of terminals, the entity said on Friday after citrus farmers delivering product for export were temporarily asked to suspend packing until Thursday. In response to a Business Report enquiry, TPT, the division of Transnet, which owns and operates 16 terminal operations situated across seven South African Ports, said on Friday daily engagements were being held with the citrus industry to manage the flow of citrus volumes from inland to the port terminals. “Regular appeals to industry include support, especially from shipping lines who make commercial decisions to bypass some port terminals in favour of others,” said TPT. This…

Dineo Faku dineo.faku@inl.co.za THUNGELA Resources, the South African thermal coal producer that was spun off from global Anglo American, is contemplating declaring a maiden dividend after shooting the lights out in its debut financial results for the half-year to the end of June. Thungela, which means to “ignite” in Zulu, surged nearly 9 percent on the JSE on Friday in intraday trade as it posted a profit of almost R1 billion profit in the half-year to the end of June. The share closed 5.36 percent higher at R49.31. Chief executive July Ndlovu said: “Our strong balance sheet, coupled with the above, paves the way for Thungela to consider the declaration of a maiden dividend at the annual results for 2021, in line with Thungela’s stated dividend policy of a…

IN DECEMBER last year, I argued that the stage was set for a re-rating of Richemont against its peer group and global equity markets. Since I penned the article “Riche- mont reinvigorated: An opportunity?”, Richemont has outperformed the South African stock market as measured by the FTSE/JSE All Share Index by about 21 percent. Richemont has also outperformed the S&P Global Luxury Index in terms of US dollars by more than 18 percent since the end of November last year. The capital returns for holders of Richemont shares who received warrants in the shareholder loyalty scheme last year was even greater if the value of the warrants is taken into account. In South Africa, Richemont is listed as a depositary receipt where each depositary receipt represents a one-tenth share…