Star 2023-02-17

THE JSE WAS less affected by the global economic downturn last year than other key markets and the market has benefited from rising interest among retail investors. JSE CEO Dr Leila Fourie said in an interview as part of the JSE SA Trade Connect Conference held in Cape Town yesterday that the JSE’s All Share Index had ended 2022 flat, while the Nasdaq ended the year 33% lower and the MSCI was down 17.7%. Another indicator that the JSE was being viewed more favourably among international investors compared with other emerging markets, was that the R84 billion net outflow of funds from the local market was just over half the net outflow of the previous year, she said. “We are starting to see a shift in international sentiment towards…

SOUTH32 reported a 44% drop in first-half underlying earnings for the six months ended December 31, 2022, amid reports yesterday that the diversified miner is in discussions with Eskom regarding buying nuclear power for Hillside Aluminium. Hillside Aluminium is State-owned Eskom’s largest industrial customer. South32 for several years has aired its energy concerns around Hillside, saying it must get a green energy supply in line with its carbon reducing targets. In July 2021 a 10-year power supply agreement was signed between Eskom and South32’s Hillside aluminium smelter, which secures energy supply until 2031 for the Hillside smelter under a rand-based tariff with escalations linked to South Africa’s producer price index. Specialist publication, Miningmx, yesterday reported that the Perth-headquartered group said could become uncompetitive if the talks failed. “We have a…

EMINENT business executive Professor Bonang Mohale, who chairs the Business Unity SA (Busa), did not mince his words about the state of the economy and the lack of leadership, calling South Africa “a failed state”. Speaking at the Business Ethics Series event, Mohale said the regressing economy was pushing it dangerously close for the government to be unable to afford the country’s astronomical debt burden and the debt service costs. “We are not a failing State, but a failed State. Therefore, the importance of ethical leadership has never been more important,” Mohale said. “Each time we experience load shedding, we are wiping approximately 1% off the GDP (gross domestic product), affecting the future of each and every single South African – that is why we all have to care deeply…

Local currency is expected to hover around its current levels for some time THE RAND plunged to another three-month low yesterday, weighed down by falling commodity prices, the ongoing energy crisis and fears of further monetary tightening by the US Federal Reserve. The domestic currency fell 0.18% to close at R18.20 against the US dollar, the weakest it has been since November 2 when it was R18.25/$1, as international and domestic factors ganged up against the rand. Investec chief economist Annabel Bishop said commodity prices fell in February and were lower on the year, led by broad based drops across the commodity categories, weakening commodity currencies in turn. Bishop said commodity prices were coming off particularly high bases of a year ago, at or near the peak of the current…

EARLIER this week, Forbes Africa announced their list of the wealthiest people on the continent. Six South Africans were featured on the list of 19 people which was topped by Nigerian, Aliko Dangote. He founded and chairs Dangote Cement, the continent’s largest cement producer. South African luxury goods magnate Johann Rupert held on to the Number 2 spot with $10.7 billion (R192.5bn), down from $11bn in 2022 as his shares in Richemont, the maker of Cartier watches and Montblanc pens, clawed back much, but not all, of last year’s decline. While many household names of South Africans featured on the list such as mining magnates, Patrice Mo- tsepe and the Oppenheimers as well as Rupert and Pepkor’s Christoffel Wiese, the co-founder of one of South Africa’s most…

EMBATTLED power utility Eskom said yesterday that property worth about R600 million had been put on the open market to boost its balance sheet. In 2021, Eskom told the media it aimed to raise a minimum of R2.5 billion from the sale of its “bad stock”, or non-core assets. Yesterday it said that figure was likely to increase as the entity identified more properties for disposal over the next five years. Further evaluations were being done to put more properties up for sale. Eskom’s media department said: “Eskom is currently verifying its property portfolio and analysing the existing stock with the intention of retiring properties that meet the criteria for inclusion in the disposal programme. “Currently, properties that have been retired or are in the process of disposal…