Star 2023-04-26

WITH Freedom Day approaching, many will be tightening up the locks on their wallets and spending impulses as the cost of living crisis in South Africa, coupled with Eskom’s load shedding, makes South African consumers feeling the pressure. It could get worse as the South African Poultry Association (Sapa) has warned that the prices of eggs could be sky-rocketing soon as well. Sapa’s general manager: Egg Organisation, Dr Abongile Balarane, said yesterday that while eggs remained one of the most affordable animal protein sources, it was becoming increasingly more expensive for farmers to produce this highly versatile and nutritious protein source. “From April 1, 2023, the Eskom tariff increase of 18.5% kicked in, adding more pressure to the egg producers. It is estimated that the variable costs to produce an…

It remains intact in spite of the country having been greylisted, he says DANIEL Mminele, the chairperson- designate at Nedbank and outgoing chairperson of Alexforbes, has backed the credibility of South Africa’s financial institutions, saying that it remains intact in spite of the country being greylisted. Speaking at the PSG Konsult webinar yesterday, Mminele said the greylisting was a call to action – one that required a firm resolution by public and private sector leaders to implement fast, targeted solutions. Earlier this year, the Financial Action Task Force (FATF) put South Africa on its greylist for not fully complying with international standards around the prevention of money laundering, terrorist financing and proliferation financing. The greylisting raised concerns about the state of the country’s financial institutions, its policies on financial crimes…

SHARES in Anglo American Platinum (Amplats) slumped by 2.57% to close at R1 071.99 on the JSE yesterday after the precious metals miner said production for the 2023 first quarter to March had dropped by 6% although there was some respite from firmer recoveries and higher grades at its Zimbabwe mine. Anglo Platinum’s stock shed 2.31% on the JSE in afternoon trade, as investors weighed the lower production volumes against possible escalation in load shedding in the next few months. Analysts say South Africa would likely undergo severe load shedding, “with the resultant impact harder on smelting by platinum group metal (PGM) companies” that are already taking strain. During the quarter under review, load shedding resulted in the metal in inventory creeping up for Amplats. “Eskom load-curtailment impacted 13…

HAMMERSON, the UK- and JSE-listed owner of premium retail centres in the UK said yesterday that it had successfully focused on executing its strategy in the first three months to March 31. Rita-Rose Gagne, Hammerson’s CEO, said in a trading statement ahead of its planned annual general meeting on May 4, that “we have a strong operational grip that is delivering top line growth, with continued momentum in leasing and a strong pipeline. “We have further reduced costs, with more to come as we create a sustainable and agile platform.” The meeting may be lively – shareholder advisers have told Hammerson’s investors to vote against resolutions tabled by Lighthouse Properties, to install two new board members, according to the EG News online publication yesterday. Lighthouse, which owns nearly 23% of…

STEINHOFF International Holdings’ share price gained 20% yesterday after shareholders drew some comfort from plans to further firm up the restructuring plan of the group in their favour. The debt-laden international retail group said yesterday its creditors were prepared to accept contractual contingent value rights (CVRs) for shareholders, as part of a Dutch restructuring plan for the group. The share price closed 20% higher at 24 cents on the JSE yesterday, but it is still well below R2.90 that the share traded at a year ago, before it become apparent shareholders were likely lose much of the value of their stakes in a restructuring that favours the creditors. CVRs rights typically ensure shareholders get certain benefits when a specific event occurs, usually within a specified time. Steinhoff’s board did…

THE ECONOMIC outlook in South Africa deteriorated further in February as sentiment among businesses turned sour about the prospects over the next six months on the back of disruptive power cuts. The composite leading business cycle indicator, a measure of early signals of turning points in business cycles, fell by 0.7% month-on-month in February 2023, slipping further from an upwardly revised 0.2% fall in January. The South African Reserve Bank (SARB) said this was the third consecutive month of decline as eight out of the 10 available component time series decreased. This means that the leading indicator reading for the first two months of the first quarter of 2023 fell by 2.4% versus the first two months of the fourth quarter of 2022, indicating a further slowdown in the business…