Star 2024-03-04

THE NATIONAL Union of Metalworkers of SA (Numsa) has called for a moratorium on retrenchments, mainly at the platinum group metals (PGMs) mines, as other mining operators are unable to absorb any of the affected workers. Sibanye-Stillwater, Anglo American Platinum (Amplats), and Impala Platinum have been laying off workers from shafts, head offices and across mining operations, arguing that PGM prices have tanked, thereby eroding profitability of the sector. Trade union Uasa told Business Report at the weekend that the number of jobs being lost in the sector was of “grave concern”. What was making it worse was the in- ability of other miners to absorb the worked laid-off. Abigail Moyo, Uasa spokesperson, said: “In previous years, the other mines could absorb the retrenched, but with the current massive amount…

THE BOARD of troubled logistics para- statal Transnet said on Friday that it had approved that Transnet proceeds to finalise the contract awarded to Manila-headquartered International Container Terminal Services Inc (ICTSI) following the conclusion of the financial due diligence. In a statement, it said: “The com- pletion of the financial close is still subject to other non-financial processes, which are currently under way, and set to be concluded without undue delay.” Durban Pier 2 is Transnet’s biggest container terminal, handling 72% of throughput from the Port of Durban as well as 46% of South Africa’s traffic. “The partnership will have a posi-tive impact on Transnet, container supply chains and on the competitiveness of South Africa’s economy,” the company said. Transnet said on Friday that, following the selection of ICTSI as…

NEW VEHICLE sales in February fell year-on-year, continuing a trend that started in August 2023, as economic pressure and political uncertainty continue to impede growth and consumers downsize, the National Automobile Dealers’ Association (Nada) chairperson, Brandon Cohen, said on Friday. Domestic sales of new vehicles fell 0.9% in February, compared with the same month a year before. Statistics released on Friday by the National Association of Automobile Manufacturers of South Africa (Naamsa) showed new vehicle sales in February at 44 749 units, a decline of 413 units over February 2023. “The market faced headwinds from the recent fuel price increase and antici- pation of another hike (this) week. The Budget speech further strained consumer pockets, compounded by the looming general election. Cohen said there were some positives. Light commercial…

It expects its 2023 earnings per share to decline by between 90% and 70% to a range of between 107 cents and 321c MTN GROUP’s share price ended lower on Friday after it predicted that its annual results to December will be hard hit by the sharp devaluation in Nigeria’s naira against the US dollar, despite a good operational performance by Africa’s biggest cellphone operator. The foreign exchange losses in subsidiary MTN Nigeria’s financials were estimated to be a whopping 593 cents (2022: 52c). This is more than half the entire group’s 1 071c earnings per share reported by MTN in the 2022 financial year. MTN now expects its 2023 earnings per share to decline by between 90% and 70%, or by 964c and 750c, to between…

EMERGING markets – known for their potential high returns, but commensurate higher risks – are particularly vulnerable during periods of risk aversion, as we are currently experien- cing. Investors tend to seek safe-haven assets in times of uncertainty, such as government bonds or stable currencies, leading to a capital outflow from emerging markets. This exodus of capital can result in currency depreciation, higher borrowing costs, and reduced investment in these economies. As global economic challenges persist, South African stocks are feeling the impact of high interest rates, inflation, and geopolitical tensions in major economies. The Johannesburg Stock Exchange (JSE) has been closely tracking these developments, leading to increased volatility and uncertainty in the local market. One of the key factors affecting South African stocks is enduring high interest rates in…

THE JOHANNESBURG Stock Exchange (JSE) is currently the largest stock exchange in Africa and one of the oldest on the continent. Since its establishment in 1887, the JSE has played a critical role in capital formation, investment facilitation, and economic development. It also serves as a key platform for both domestic and international investors seeking exposure to South African equities and bonds, and is renowned for its stringent regulatory framework. Now, however, there is a different picture emerging and not all of it is looking rosy. Exodus In recent years, the JSE has witnessed a concerning trend of companies de- listing or considering delisting from the exchange. For instance, in 2023, 23 companies exited the exchange. But what made 2023 stand out was the lack of new equity listings on…