Movements & Shakeups in The SA Economy

The past week has seen the local economy and the big players who operate in them buckling themselves in for a somewhat wild ride. The local government elections held on Monday also has a big effect on stock prices and companies. We’ve put together a small spotlight on the notable goings on in the SA sphere over the last 7 days that you should know.

SA Company News Highlights:

• Dis-Chem Pharmacies Limited has achieved positive results, despite a tough economic environment. The Group increased headline earnings per share by 35.3%. A gross interim cash dividend of 19.48540 cents per share has been declared.
• Talks between Heineken and Distell is still ongoing as the Public Investment Corp (PIC) is asking for a higher price.
• In an earnings update for the six months to end September, Telkom said its headline earnings per share will increase by between 25% to 35%. Telkom’s share price rose 5% to R51.39.
• MTN Nigeria released unaudited results for the nine months ended 30 September 2021. Mobile subscribers declined by 7.5 million to 67.5 million, impacted by the regulatory restrictions on new SIM sales and activations. Active data users increased by 2.5 million to 33.2 million, and revenue was up by 23.7% to ₦1,204.4 billion.
• Massmart’s total sales for the 39-week period ended 26 September 2021 amounted to R60.6 billion, increasing by 0.2% over the prior year.
• The Foschini Group expects headline earnings to be 384.8c – 401.5c per share for the period from April to September, from a loss of 83c.
• Mr Price Groupadvised shareholders in a trading update that headline earnings per share (HEPS) is likely to be between 30% and 40% higher than the same period last year.  The interim results are due on Thursday, 25 November 2021.
• Famous Brands Ltd reported a 140% rise in half-year earnings. Headline earnings per share for the six months ended 31 August of 97 cents versus a loss of 240 cents in 2020.  Famous Brands said it will not be paying an interim dividend.
• Impala Platinum Holdings Ltd said that it is in talks to buy Royal Bafokeng Platinum Ltd for an undisclosed amount.
• Anglo American Platinum (Amplats) is in talks to sell its Bokoni platinum mine to African Rainbow Minerals.

SA Economic Snippets:

• South Africa continues to count the votes after Monday’s municipal elections with initial results showing the African National Congress (ANC) support dropping below 50%.
• South Africa’s trade surplus shrank to R22.24 billion in September after recording a trade surplus of R42.40 billion in August.
• Petrol prices of both 93 and 95 increased at midnight on Wednesday by R1.21, and diesel increased by R1.48.
• According to a Reuters poll economic growth in SA was estimated to have expanded 5% this year but will slow to 2.2% in 2022.
• South Africa is fast tracking plans for climate change by prioritising the production of fully electric vehicles.
• The ongoing power cuts in South Africa is a major concern for the economy as this can lead to job losses.
• Andre De Ruyter stated that the energy transition to reduce carbon emissions at Eskom will cost more than R500bn.

Read also:

• MYWEALTH INVESTMENTS: Summary of the Investment Club Meeting on 16 September 2021 – Part One
• MYWEALTH INVESTMENTS: Summary of the Investment Club Meeting on 16 September 2021 – Part Two