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Motor sector indicators display robust second-quarter rebound EDWARD WEST edward.west@inl.co.za VEHICLE sales rebounded by 148.6 percent during the second quarter over the Covid-19-affected same quarter in 2021, but the 2.9 percent decline compared with the first quarter of this year signalled a slowdown in the recovery. The weaker performance in new passenger cars and bakkies during the second quarter 2021, compared with the previous quarter 2021 when the economy grew by an annualised 4.6 percent, signalled ongoing fragile consumer confidence. These were some of the findings of the National Association of Automobile Manufacturers of SA (Naamsa) quarterly survey that was released yesterday, which otherwise revealed an industry in recovery mode, in spite of supply disruptions. Vehicle exports continued an upward momentum in the second quarter and for…
Absa Group resumes dividends as it cuts its bad debt provisions EDWARD WEST edward.west@inl.co.za THE ABSA GROUP has resumed dividends off the back of a strong surge in earnings and declining provisions for bad debts in the first half of 2021. Headline earnings a share increased to 1 019.7 cents in the first half from 173.6c at the same time last year. An interim dividend of 310c per share was declared. Revenue was up only 3 percent to R41.2 billion. Operating costs also increased 5 percent to R22.6bn, and the cost-to-income ratio rose to 54.9 percent from 53.9 percent. However, impairments fell 68 percent to R4.7bn. The group’s core capital adequacy ratio of 12.4 percent was well above regulatory requirements, after being…
More proof of state’s commitment to improve logistics infrastructure, says Gordhan Siphelele Dludla siphelele.dludla@inl.co.za Transnet yesterday moved forward with its R100 billion expansion plans for the Port of Durban, issuing Request for Information (RFI) solicitations for potential private-sector investment partners. President Cyril Ramaphosa first announced in April that the expansion of the troubled port precinct would require R100bn in new investment over the next decade. The upgrade of the port is aimed at improving efficiency at one of the country’s key drivers of economic growth, and is part of structural reforms. Public Enterprises Minister Pravin Gordhan yesterday said this was the second part of structural reforms to attract investment following the separation of Transnet National Ports Authority (TNPA) from the group. Gordhan said TNPA had already started issuing RFI…
Dineo Faku dineo.faku@inl.co.za SASOL shares closed weaker on the JSE yesterday as the market signalled its displeasure as Sasol parked dividend payouts during the year ending December 2021 amid concerns over the global economic recovery and despite the group slashing its debt almost in half and returning to profit. The significant increase in oil prices during the second half of the financial year and a strong recovery in liquid fuels demand in South Africa to mostly match pre-Covid levels were major tailwinds for the group. The shares closed 5 percent lower at R206.64. However, Sasol yesterday promised to resume dividend payments once it met all its balance sheet targets. Chief financial officer Paul Victor said the risk of a prolonged period of economic uncertainty still lurked. “On this basis,…
Prosus and Naspers successfully implement their share swop EDWARD WEST edward.west@inl.co.za GLOBAL consumer internet group Prosus and parent Naspers’ share price slipped yesterday in spite of announcing the successful implementation of the capital restructure and share exchange offer between them. Despite initially drawing criticism from some of Nasper’s institutional shareholders about the complexity and reasons for the new cross-shareholding structure, chief executive of the two groups Bob van Dijk said yesterday: “We are pleased with the outcome of the Prosus voluntary share exchange offer. The transaction increases the size of the Prosus free float and more than doubles its ownership of the group’s outstanding global consumer internet portfolio.” Prosus’ share price fell 2.36 percent to R1 278.17 by mid-morning yesterday, while the price of its about 30…
Hawks inquiry: VBS saga now enters the era of consequence management CORRIE KRUGER LAST WEEK SAW the arrest of an individual in Klerksdorp in relation to the VBS Mutual Bank looting. Twitter lit up as people started trying to guess who this person could be. It was clear that there were two groupings among the tweeters. Those who suggested the person was a member of the EFF, and those who said the individual could be from another political party, perhaps the ANC. A small minority expected it could perhaps be someone from Insure Group Managers, which till now have been largely ignored by the media in relation to their dealings with VBS. Very few VBS transactions seem to have been at an arm’s length and based on sound business…
