Star 2022-12-14

THE CONSTRUCTION sector outperformed gross domestic product (GDP) by a wide margin in the third quarter, but fixed capital formation remains well below that of similar sized countries. The Afrimat Construction Index (ACI) released yesterday showed the index had virtually fully recovered from the effects of the Covid-19 pandemic. The ACI is a composite index of activity in the building and construction sectors compiled by Dr Roelof Botha, an economic adviser to the Optimum Group, on behalf of Afrimat. The index value of 123.4 was 23.4% higher than the base period, which was the first quarter of 2011, but it remained lower than its record high of above 140, recorded in the third quarter of 2016, a decline since then which Botha said indicated the erosion of investor confidence since…

RMB Holdings (RMH) had since December, 2020 delivered a 46.5% return to shareholders as it continues with its monetisation strategy and is defending legal action from some shareholders relating to a property loan guarantee. The group said in results for the six months to September 30, the return to shareholders included a R2 billion special dividend in September and a R1.1bn special dividend paid in May, 2021. The halfway mark of its monetisation strategy had been breached, realising 63% of the net asset value as at June 30, 2020 the group said. The payment of the special dividend in September reduced net asset value per share to 98.8 cents from 238.6 cents, a decrease of 59%. On September 7, an agreement RMH and RMH Property concluded with Brightbridge Real Estate…

GOLD Fields faces an uncertain future after the resignation of its CEO, Chris Griffith – only a year-and-a-half into the role – and after the recent departure of several of its executives. Gold Fields said yesterday that Griffith’s resignation was his decision as he felt responsible after the failure of the Yamana deal. Griffith, 57, who was appointed CEO in April, 2021 plans to leave on December 31. In a call to journalists yesterday, Gold Fields chairman Yunus Suleman said Griffith had approached the board and said that he intended to leave the company. Martin Preece, who is currently running Gold Fields’s South Deep Mine, has been appointed interim CEO. “He felt responsible for the failure of the Yamana deal, and he approached us that he would like to depart.…

This comes as passenger volumes record overall recovery to pre-Covid-levels AIRPORTS Company South Africa (Acsa) has assured airline passengers that they will enjoy a seamless experience at its airports during the peak festive season, with scheduled flights taking off on time after overcoming jet fuel challenges. This comes as passenger volumes have recorded an overall recovery of pre-Covid numbers of 70% for the year to date in South Africa, driven by domestic travel at 72% while international travel accounted for 66% by end October. Acsa CEO Mpumi Mpofu yesterday said that jet fuel supply challenges were a thing of the past after various factors had resulted in supply challenges, specifically at OR Tambo and Cape Town international airports. Stock-levels at these airports dropped to alarmingly low levels at times during…

ZEDA Limited, an integrated mobility solutions provider, listed its shares yesterday on the main board of the JSE after unbundling from Barloworld in November. Zeda’s shares yesterday traded at the start of the day at R18, but by 4pm were at R16.69, 7.28% lower. In an interview, Zeda’s CEO, Ramasela Ganda, said: “I’m very emotional … Today is a day of mixed emotion. Leaving Barloworld after so many years, it’s tough, but also it’s exciting. The possibility that lies ahead of us and that people can now invest directly in Zeda.” She said Zeda was led by an experienced management team who were committed and worked very hard through the unbundling process, but at the same time, delivering exceptional returns. “To do what we’ve done in a short period, recovering…

SENTIMENT in the business sector in South Africa has remained relatively stable to end November, due to optimistic economic performance and in spite of the ongoing energy crisis and political instability. The South African Chamber of Commerce and Industry (Sacci) yesterday said the Business Confidence Index (BCI) declined by 1.4 index points to 109.4 in October. However, Sacci said the BCI recovered the 1.4 index points in November and went back to 110.9 points. The BCI was 3.6 index points higher in November this year than in November last year, and 2.9 index points up on November, 2020. Sacci said the erratic movement of the BCI in 2022 from a high of 112.0 in February to a low of 103.2 in May – 8.8 index points – in itself mirrored…