Star 2023-03-17

TRANSACTION Capital’s share price continued to sell-off yesterday, falling 39.86% to close at R8.78on the JSE yesterday, with the market capitalisation now down by R11.7 billion since Monday. On that day the share price opened at R28.13, but the price fell sharply after the group, which controls the WeBuyCars used vehicle operation, the SA Taxi vehicle financing operation and international business outsourcing solutions group Nutum, released a trading statement warning core earnings per share for the six months to March 31 were expected to fall by more than 20%, but no more than 50%, compared to 2022’s first half. The share price may also have been affected by the group on the same day refuting speculation in the press and among some shareholders about CEO David Hurwitz’s sale of…

NAMPAK’S shares closed 7.53% up on the JSE yesterday after the packaging firm appointed three directors to its board to help navigate the debt-laden firm out of troubled financial waters. Shareholders were advised that the board of Nampak had appointed three new directors with effect from March 15: Tjaart Kruger, Phildon Roux and André van der Veen. The appointments were also hailed yesterday as a victory for shareholder activism. Shareholders representing roughly 40% of the shareholding in the group have pushed for a board shake-up over the past few months amid unhappiness at the company’s direction. The Three Musketeers are perceived as right for the job of turning the firm’s fortunes around. As a result the shares closed on R1, basically getting a high five from happy market investors. The…

The JSE All Share index fell below 72 600 points, in an 8-day losing streak THE SOUTH African stock market plunged to a four-month low yesterday amid recent turbulence in the global financial system and the looming national shutdown in the country. The JSE All Share index in intraday trade fell below 72 600 points, pushing its losing streak to eight days, led by resource-linked stocks. Later it managed to regain ground ending at 72 905.50 points. Wall Street’s main indexes fell yesterday after the European Central Bank raised its key policy rate despite fears of a global banking crisis, fuelling concerns that the Federal Reserve could also tighten monetary policy for longer, Reuters reported. Meanwhile, the rand moderated around R18.38 to the US dollar as risk appetite…

EXXARO yesterday delivered strong annual results on the back of coal prices, but trimmed its annual divi- dend to shareholders as coal prices start to cool and as it remains hamstrung by Transnet logistical problems. In its financial results for the year ended December 31, 2022, the mining firm said headline earnings per share rose by 28% to R60.16 a share from R46.83 a share, while revenue increased 41% to R46.3 billion. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) came to R19bn in the reported period, from R10.6bn previously. Despite this, it declared a lower dividend, due to lower income from its iron ore investment and uncertainty over Transnet’s rail performance. It declared a final dividend of R11.36 a share, compared with R11.75 last year. Exxaro CEO Nombasa…

THE COST OF living in South Africa is expected to firmly stay elevated with headline inflation above the 6% upper limit for the remainder of the year before slowing next year. This is according to the Inflation Expectations Survey for the first quarter of 2023 conducted by the Bureau for Economic Research (BER) at the Stellenbosch University. The 2023 first quarter survey of financial analysts, business executives and representatives of the trade union movement was conducted between February 20 and March 9. The BER yesterday said the average inflation expectations for 2023 and 2024 increased by 0.2 percentage points, relative to the fourth quarter of 2022. BER economist Nicolaas van der Wath said these groups were forecasting inflation to average 6.3% in 2023 and 5.8% in 2024, before it subsides…

AFRICAN Rainbow Capital (ARC) Investments, which maintained a steady value to its portfolio in the six months to December, said Rain would soon launch a mobile service, using spectrum gained in the recent government spectrum auction, co-CEO Johan Van Zyl said yesterday. Rain is the key asset in the portfolio of the empowerment investment holding company ARC Investments, and its 20.3% interest in the telecoms group was valued at R3.64bn. Van Zyl said the telecom industry had been affected by load shedding and battery theft, which led to rising costs. However demand and sales remained robust. He said Rain was already well-positioned as a low-cost data provider. Rain’s earnings before interest tax depreciation and amortisation was on track to exceed R2 billion over the year to February 2023, said…