Thursday, August 6

Tag: investment information

JSE profits increase, despite volatile market
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JSE profits increase, despite volatile market

The Johannesburg Stock Exchange (JSE) reported a positive six months for the first half of its financial year – despite the macro-economic challenges caused by the global Covid-19 pandemic. The owner and operator of Africa’s biggest and most liquid market for shares, bonds and derivatives, reported a 22% increase in net profit after tax to R485 million, while total revenue increased 22% to R1.32 billion. JSE group CEO Leila Fourie said she’s pleased with the results, which were achieved amid a turbulent and volatile market, with record trading volumes amplified by the sovereign credit rating downgrade, South Africa’s exit from the World Government Bond Index, and rand volatility. The JSE recognises the substantial impact of the pandemic on its clients. “We feel that it shows that we...
Covid-19 cases slow in hotspot provinces, minister says
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Covid-19 cases slow in hotspot provinces, minister says

Three South African provinces considered coronavirus hotspots have seen new infections slow in recent weeks, though it is too early to say whether the country’s peak has passed, the health minister said on Wednesday. South Africa has the world’s fifth highest number of infections, with cases passing 500,000 over the weekend, despite a strict lockdown since late March. Financial hub Gauteng, tourist centre Western Cape and the Eastern Cape have seen steep rises for months, with total cases at roughly 183,000, 97,000 and 80,000 respectively. “The number of new infections is increasing at a lower rate than what had been happening in the whole of June and up to the middle of July. That clearly indicates to us that there is a declining trend,” Health Minister Zweli Mkhize told a news con...
Lockdown lifestyle means you could pay less on insurance
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Lockdown lifestyle means you could pay less on insurance

The Covid-19 lockdown is likely to permanently change the way many people work, with more expected to be working remotely or from home in future and only travelling to their workplace a few times a week or only when necessary.Not driving their vehicles as much or as far as before, having a reduced risk of being involved in an accident, and less traffic and congestion creates an opportunity for motorists and households to reduce their monthly insurance premiums. Many insurance companies have duly temporarily reduced motorists’ monthly premiums. Read: Covid-19 is shaking up the insurance sector Wynand van Vuuren, head of legal and customer experience partner at King Price Insurance, said the accident portion of comprehensive motor vehicle insurance accounts for 60% to 65% of monthly pr...
July Absa PMI signals slower manufacturing improvement
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July Absa PMI signals slower manufacturing improvement

South Africa’s seasonally-adjusted Absa Purchasing Managers’ Index (PMI) expanded in July, although at a slower rate compared to the previous month. The index, which gauges manufacturing activity in Africa’s most industrialised economy, fell to 51.2 points in July from 53.9 points in June, remaining above the 50-point mark that separates expansion from contraction. The business activity sub-index ticked down slightly to 62.9 from 64.6 in June, Absa said in a statement on Monday. “The fact that more respondents signalled a further increase in output compared to those seeing further growth in demand, could perhaps be explained by some firms producing more in an attempt to catch up on production lost during earlier stricter lockdown levels,” Absa said. The employment sub-index showed ...
Telkom moves into financial services
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Telkom moves into financial services

Telkom has branched into the competitive space of financial services by launching a life insurance business that it said will initially sell funeral insurance. Telkom and other mobile operators in South Africa are looking to tap more than 11 million South Africans who do not have bank accounts to offer lending and other financial services, a move that is set to threaten traditional and digital banks. They are also seeking to expand their mobile payment apps into online market places to leverage their network and customer base. Shift “In recent years Telkom has made a strategic shift to digital distribution, which puts it in an ideal position to distribute insurance products using its considerable digital structure and intellectual property,” Sibusiso Ngweny...
Billion dollar deals see private credit step out of the shadows
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Billion dollar deals see private credit step out of the shadows

In the world of private lending, the loans, by Wall Street standards, always skewed small. The typical borrower would be some mid-tier company that lacked access to bond and syndicated loan markets, and the typical deal size would be around $100 million. If a loan climbed to $500 million, it’d be celebrated as a mega-deal. But in a sign of how the pandemic is rapidly changing the shadow lending market, super-charging its emergence this past decade as a major source of credit for corporate America and putting it in direct competition with Wall Street, both the size of the borrowers and the size of the deals are swelling. In a transaction last week that epitomised this shift, Bombardier Inc., the Canadian plane and train maker, said it scored a loan that can be as much as $1 billion, the n...
Namibia to close schools, limit public gatherings
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Namibia to close schools, limit public gatherings

Namibian schools will be suspended for the second time in four months next week, while limits on public gatherings will be tightened further to 100 from 250 amid surging cases, President Hage Geingob said. In a televised speech on Friday, Geingob said the decision to suspend schools from Aug. 4 for 28 days came after considering the risks associated with the spread of the virus. The measure affects early childhood development, pre-primary, primary and the first two grades of high school. Namibia has 2,129 confirmed cases and 10 deaths with the country’s rate of daily new cases now the fourth highest on the continent following South Africa, Eswatini and Gabon, according to Geingob. People will also not be allowed to consume alcohol at bars and taverns. They will only be permitted to...
Trade surplus swells to record on weak imports
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Trade surplus swells to record on weak imports

South Africa’s trade surplus swelled to a record after eased lockdown restrictions allowed more exports, while demand for imports weakened. The positive trade balance widened to R46.6 billion ($2.7 billion) last month from a revised R19.7 billion in May, the South African Revenue Services said Friday in a statement on its website. That’s the biggest surplus since at least January 1990, as far as the record goes back. The median estimate of five economists in a Bloomberg survey was for a surplus of R10 billion. Exports climbed by 10.1% to R116.3 billion, driven by a 19% surge in precious metals and stones. Imports dropped 18.9% to R69.68 billion  as the inward shipment of textiles fell by 53% and vehicles and transportation equipment decreased by 40% and original equipment compon...
Strive Masiyiwa struggling to sell Liquid Telecom stake
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Strive Masiyiwa struggling to sell Liquid Telecom stake

The coronavirus pandemic is hampering efforts by Zimbabwean billionaire Strive Masiyiwa to sell a stake in Africa’s largest fibre company. Masiyiwa is seeking buyers for 20-34% of Liquid Telecommunications Holdings for as much as $600 million (R10 billion), according to four people with direct knowledge of the matter. He needs the money to repay a $375 million (R6.3 billion) loan that was backed by the Public Investment Corporation (PIC), they said. The PIC, which oversees the equivalent of $135 billion (R2.3 trillion), mainly on behalf of South African government workers, is demanding the issue be resolved by the end of August after granting an extension on the payment earlier this year, the people said. The loan it backed was used to fund a pay-TV venture, which failed last year bec...
New vehicle prices rise sharply above inflation despite sales slump
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New vehicle prices rise sharply above inflation despite sales slump

New vehicle price inflation rose sharply to 6.5% in the second quarter from 3.1% in the same quarter in 2019 despite new vehicle sales nosediving because of the Covid-19 lockdown and its impact on the financial health of households. Read: SA car sales at record low TransUnion Auto Information Solutions said on Wednesday this is the first time since the second quarter of 2017 that new vehicle prices rose at a rate above inflation. Statistics South Africa reported on Wednesday that headline consumer inflation edged up marginally to 2.2% in June from 2.1% in May. Kriben Reddy, head of Auto Information Solutions for TransUnion, said the bulk of the new vehicles that are sold in South Africa are imported, which means the biggest driver of the price increase is the strength of the r...