Star 2024-01-08

Large drop in share prices earlier last year was probably overdone, says Rode’s Report A BOUNCE back in listed property share prices in the fourth quarter of last year continued into the new year as the market became more convinced inflation was under control and that interest rates would begin to decline a few times in 2024. However, by December 20, the South African Listed Property Index (Sapy) was still below pre-Covid levels, according to the latest Rode’s Report on the South African Property Market. This suggested that the large drop in property share prices earlier in the year was probably overdone, the report said. Share prices of many Real Estate Investment Trusts (Reits) bounced back in November and December. The Sapy had risen by about 10% to December…

CONSTRUCTION will be one of very few economic sectors that will hit 2024 running in South Africa as activity reached seven-year highs in 2023 off a low base following years of under investment on infrastructure, and the impact of the high interest rate environment. A key indicator of the construction sector, the Afrimat Construction Index (ACI), reached its highest level in nearly seven years in the three months to September. The index also measures data from informal sector construction-related sales, while Statistics SA’s (StatsSA)construction data only measures the formal sector. Similarly, the FNB/BER Civil Confidence Index released in December, although still at a low level with almost 60% of respondents dissatisfied with prevailing business conditions, painted an upbeat picture of the sector, with sub-indices related to growth in activity gaining…

CONSUMER prices in South Africa have been forecast to average around the midpoint of the SA Reserve Bank (SARB) target range for the first time since 2021, on the back of slowing global oil prices that could also result in easing interest rates. However, economists have warned that consumer price inflation (CPI) risks were to the upside, including potential rand weakness, rising food prices and the global shipping crisis. Headline inflation in 2023 remained above the 4.5% midpoint of the inflation target range as a result of volatility in fuel prices, the impact of severe rotational load shedding and logistical challenges at South Africa’s ports later in the year. But the petrol price fell by 76 cents a litre this week and diesel by R1.18/litre, after falling by 64c/litre…

WORLD food prices fell in 2023, with consid- erable declines for grains and oils as supply concerns eased, the UN’s Food and Agri- culture Organisation (FAO) said on Friday. Overall, world food commodity prices fell 13.7% in 2023 against the previous year, the Rome-based FAO said. The FAO’s cereals price index fell 15.4%, “reflecting well sup- plied global markets” compared to 2022, when prices soared after Russia’s invasion of Ukraine, a major grain exporter. While supply concerns eased for wheat and maize, the opposite was true for rice due to the impact of the El Niño weather phenomenon and India restricting exports. Rice prices jumped 21% last year. The vegetable oil price index posted the biggest fall last year, dropping 32.7% thanks to improved sup- plies and…

SHIPPING giant Maersk said on Friday that it would divert all vessels around Africa instead of using the Red Sea and Suez Canal for the “foreseeable future” after Yemeni rebels attacked its merchant ships. The Danish company cited the highly volatile situation and noted that the security risk remains high. “We have therefore decided that all Maersk vessels due to transit the Red Sea/Gulf of Aden will be diverted south around the Cape of Good Hope for the foreseeable future,” it said in a statement. On Tuesday, the shipping giant said it would not resume passage on the route “until further notice” after putting it on hold over following an attack on the Singapore-flagged Maersk Hangzhou. On Sunday last week, the Den- mark-owned and operated container vessel, which was travelling…

IN 2024 WE will be celebrating 30 years of our democracy. Millions of people were given an opportunity to vote a new democratic government into power for the first time in 1994. This was the result of the visionary leadership of two of the most esteemed political leaders of our time, the late presidents Nelson Mandela and FW de Klerk. Both realised that South Africa could no longer continue with its race-based system of exclusion, in short apartheid. A system characterised by marginalisation, disenfranchisement, forced removals, job reservation and militarisation of the State, especially against its black citizens. De Klerk, erstwhile leader of the National Party, and Mandela, leader of the ANC, were instrumental in laying a firm foundation for the establishment of a free and democratic South Africa through…