Star 2023-10-31

SOUTH African households and corporates are expected to take fewer loans from commercial banks this year, compared to last year, as a result of cumulative interest rates, which remain at a 14-year high of 8.25% per annum. Data from the SA Reserve Bank (SARB) yesterday showed that the growth in household and private sector credit extension has faded noticeably in recent months. The SARB said private sector credit extension (PSCE) growth ticked up slightly to 4.6% year-on-year in September, up from a marginally revised 4.4% increase in August. This marked the 27th consecutive period of growth in the private sector, albeit the second-softest since February 2022, and was marginally better than the 3.5% consensus expected. The slight improvement was driven mainly by the other loans and advances category, which includes…

CONSUMERS have been given a slight boost just ahead of the festive season as the official fuel price for November will decrease, barring LP Gas. Minister of Mineral Resources and Energy Gwede Mantashe yesterday announced the fuel price adjustments for the coming month. The department said that both grades of petrol, 93 and 95 ULP and LRP will decrease by R1.78c a litre, while diesel (0.05% sulphur) will come down by 85 cents a litre, and diesel (0.005% sulphur) will decrease by 82c a litre. Illuminating paraffin will decrease by R1.30 a litre, with the only increase for the month being LP Gas retail price, which will go up by R1.49c a litre. The country’s fuel prices are adjusted monthly, informed by international and local factors. International…

STOCKS on the JSE traded slightly higher and the rand started the week on a firmer foot at a two-week high yesterday as stronger commodity prices provided some support for local stocks and the currency, while the markets were awaiting major central banks’ interest rates decisions and South Africa’s mid-term budget. The JSE All Share Index rose 0.9% to 70 059 points yesterday, following three consecutive days of decreases, while the rand also strengthened 0.4% to R18.77 against the US dollar. Gold miners such as Sibanye-Stillwater led the surge in the JSE as it rose 3.5% to R24.28 per share followed by DRDGold at 2.8% higher to R16.83 per share as gold prices rallied held above $2 000 (R37 687) an ounce later in the day for…

President Bola Tinubu’s attemps to reform the largest economy in Africa have backfired MTN NIGERIA Communications’ R2 billion foreign exchange write-down shows that the country’s swing to liberalise its economy this year so far appears to be doing the opposite of a key aim of attracting new investment. The telecoms subsidiary of locally listed MTN Group said it had taken a R2.1bn blow to earnings after it re-measured and then restated its foreign exchange losses for the six months to June 30, the results for the quarter to September 30 showed yesterday. Nigeria’s currency has tumbled to record lows against the US dollar after the new president Bola Tinubu’s attempts to reform Africa’s largest economy. Tinubu took the reins in May, pledging reforms to attract foreign investment, and he…

ADCORP Group has initiatives under way to optimise cost structures, diversify revenue streams and enhance efficiency, boosting an already strong performance that saw earnings a share from continuing operations surge 34.4% to 33.1 cents in the six months to August 31. “By leveraging innovative solutions and data analytics, the group aims to bolster profit margins by identifying growth opportunities and implementing cost-saving measures,” CEO John Wentzel said at the release of the workforce solutions company’s results yesterday. An interim dividend of 16.1c a share (12.2c) was declared. The results reflected robust revenue growth and operational resilience in South Africa and Australia, despite tough macroeconomic conditions and external challenges faced by both economies. Wentzel said the group was resilient and on a drive to adapt and grow. “We will continue…

COMMODITY trader and miner Glencore yesterday cut its nickel production guidance for this year due to mainte- nance and strikes, but reiterated its expectation that profits from its trading division would be up from $3.5 billion (R65.8bn) to $4bn (+R70bn), above its long-term guidance range. Glencore maintained its overall 2023 guidance for copper, zinc, coal and cobalt output. Its trading division includes coal, oil, liquefied natural gas and related products, as well as metals, whose profit hit a record $6.4bn in 2022, up 73% from the previous year. The London-listed miner’s long-term yearly trading guidance earnings was for between $2.2bn and $3.2bn. Glencore, which in June offered to buy Teck’s steelmaking coal business as a standalone unit, having been rebuffed twice in its $22.5bn bid to combine the…