Star 2022-09-09

PAN-AFRICAN financial services group Sanlam reported lower mortality claims in the six months to June 30 relative to the same period in 2021 after Covid-19 impacts eased and life insurance earnings rebounded. The group’s general insurance operations, however, reported a large earnings decline due to bad weather conditions including the KwaZulu- Natal floods, rising claims and steeply rising claims costs, as well as lower investment return on insurance funds. However, the group said yesterday that its diversification had helped it to navigate the challenging global economic backdrop, and its overall operating results were strong. Group investment management operations reported strong earnings growth despite lower returns in global markets, and after benefiting from strong recent net inflows, performance and fund establishment fees, as well as growth in brokerage income. Credit and…

THE DECISION by the Department of Agriculture, Land Reform and Rural Development Minister Thoko Didiza yesterday to lift the countrywide ban on the movement of cattle was “great news for the industry, consumers and the South African economy”. This was the view of Abrie Rauten- bach, the head of AgriBusiness and Relationship Banking at Absa, as well as other industry leaders who welcomed the move. The ban was imposed to help curb the spread of foot and mouth disease (FMD) in the country. Cattle are now allowed to be moved in all but three areas, KwaZulu-Natal, Limpopo and Free State which remain selectively restricted for now. Rautenbach said: “It is expected to have a positive impact on employment while also benefiting the logistics and grain industry. It is important for…

LENDER Capitec’s share price took a nosedive of almost 9 percent on the JSE yesterday after it reported that it forecast an increase in its interim results, but much lower than the mar- ket had expected. The share price tumbled to a low of R1 900.04 in intraday trade, later closing the day at R1 906.91. However, in the past year the bank’s shares have increased by 10.35 percent. In its trading statement for the half-year ended August 31, 2022, the bank said group headline earnings per share would be between 3 964 cents and 4 067c per share, representing an increase of between 15 and 18 percent. The banks also flagged that group earnings per share would be between 3 963c and 4 064c per share, repre-…

ENVIRONMENTAL lawyers ClientEarth said yesterday they were supporting a complaint filed in Australia against Glencore, which has a listing on the JSE, alleging that the miner and trader could be misleading investors and the public over its climate strategy. In a letter dated September 2, several green groups including the Environmental Defenders Office (EDO) asked the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (Asic ) to investigate Glencore’s statements detailing its plan to hit net-zero carbon emissions by 2050. The complaint alleges Glencore “is expanding its coal production in Australia“. “Despite Glencore publicly claiming to have Paris-aligned decarbonisation plans in place, the legal review of Glencore’s activities reveals that the company is using a decarbonisation pathway that fails to represent its coal business, which…

RISING interest rates and sharp increases in food and transport costs could continue depressing the overall consumer confidence in South Africa after slashing the morale of debt-laden affluent households if inflation remains elevated. The FNB/BER Consumer Confidence Index (BCI) released yesterday remained deeply in contractionary territory in spite of clawing back 5 index points to -20 points in the third quarter, after plunging from -13 points to -25 points during the second quarter. FNB yesterday said that consumer sentiment remained extremely depressed and signalled a substantial deceleration in real consumer spending growth relative to the robust rates recorded at the start of the year. Confidence levels of high-income households (earning more than R20 000 a month) and middle- income households (earning between R2 500 and R20 000…

MANUFACTURING output in South Africa could turn the corner for the better in the second half of the year if the energy crisis does not disturb momentum following the rebound in July. However, if load shedding inten- sifies during the summer months – as Eskom has indicated – manufacturing output could continue to slow down and drag down the overall economic growth. Data from Statistics South Africa (Stats SA) yesterday has shown that manufacturing output increased by 3.7 percent year-on-year in July after three consecutive months of down- turn. Manufacturing was the biggest drag on gross domestic product in the second quarter, falling by 5.9 percent after floods damaged factories and plants and disrupted logistics and supply chains in KwaZulu-Natal, while rotational power cuts intensified. However, this July…