Star 2023-10-04

CONSUMERS in South Africa will once again be left scrambling to readjust their monthly budgets to contend with a fourth consecutive month of fuel price increases. This comes after the Department of Energy and Mineral Resources (DMRE) announced the official fuel prices for the month of October yesterday. The DMRE said that petrol would increase by between R1.08 (for 93 unleaded) and R1.14 (95 unleaded) from today, October 4, while diesel prices would go up by between R1.93 (low-sulphur 50ppm) and R1.96 (500ppm). This means a litre of 95 unleaded will now cost R24.96 at the coast and R25.68 in the inland regions, while 93 unleaded will rise to R25.22. The diesel increases will see the wholesale price of 50ppm rise to R24.51 at the coast…

It is not being helped by declining commodity prices, we could see further weakness THE rand fell to its lowest level against the dollar in four months yesterday on the back of fresh strength in the US dollar, as global oil prices soared. Markets were concerned about the prospects of further interest rate hikes to curb the potentially rising inflation. The local currency weakened by 0.8% to R19.35 against the greenback by lunchtime yesterday, its lowest since June 2, pressured by a stronger dollar and the rising fuel prices. The US dollar hit a fresh 10-month high following ongoing strong US economic data, which supports the higher-for-longer interest rates narrative amid expectations that monetary policy will need to stay restrictive for “some time”. The dollar’s strength was further supported…

THE PUBLIC Investment Corporation (PIC) has reported a 27% plunge in profit for the year ended March 31 on the back of poor performing assets on the JSE due to weaker economic conditions and higher levels of risk aversion among major investors. This was in spite of the largest asset manager in South Africa growing total assets under management (AUM) by R52.1 billion or 2%, to R2.599 trillion, compared to R2.548trln a year ago. The PIC yesterday reported a net profit of R221 million and a balance sheet growth by R200m for the 2022/23 financial year, which was characterised by high levels of global inflation and higher interest rates. PIC acting chief financial officer Brian Mavuka said global financial markets had to contend with tighter financial…

THE COMPETITION Commission of South Africa has called on interested parties to comment on draft revised Public Interest Guidelines related to merger control within 30 days. According to Legal firm Webber Wentzel, since the amendment of the Competition Act a few years ago, the public interest component of merger regulation had achieved particular prominence. “Over the 2021/22 financial year, at least a quarter of all mergers were approved subject to public interest conditions. As a result, businesses have been eager for clearer guidance from the competition authorities on when public interest conditions will be applied and how these conditions should be structured,” it said. In a statement yesterday, the commission said in February 2019, the Competition Act 89 of 1998 was amended to address concentration and the lack of transformation…

THE DIPULA Income Fund is “refreshing” many of its retail assets with a 200 million investment to provide modern, accessible appealing shopping experiences for retail- ers and customers. Dipula is invested in a R10 billion portfolio of 169 properties spanning one-million square metres across nine provinces in South Africa. Its retail property portfolio represents more than 60% of its gross rental income. Dipula invests in urban convenience centres and lower living standard measure retail in townships, rural areas and towns throughout South Africa. CEO Izak Peter- sen said in a statement that they were optimistic about the defensive perfor- mance of retail property, and believed in optimising this by keeping their shopping centres fresh, relevant and appealing to both retailers and customers. Dipula has earmarked more than…

SUMITOMO Rubber South Africa, backed by its Japan-based parent company Sumitomo Rubber Industries (SRI), plans to boost production of Dunlop tyres at its Ladysmith plant with a R1.7 billion investment. The production capacity is being boosted as more Original Equipment Manufacturers look to domestic tyre producers to meet their vehicle specifications, a statement said. The investment drive was announced during the 50th anniversary of Dunlop’s Ladysmith manufacturing plant on Monday. The facility opened in October 1973. Sumitomo Rubber South Africa (SRSA) also distributes the Sumitomo and Falken tyre brands.Minister of Trade Industry and Competition, Ebrahim Patel, said the new investment would provide a boost to local production, strengthen the factory’s output, support local jobs and modernise the plant. “South Africa has an 88-year history of tyre manufacturing, and…