- Domestic equities closed in the green as precious metals miners outperformed and Britain announced it would lift strict COVID -19 quarantine rules for 47 countries, including South Africa. The Johannesburg Stock Exchange’s All-Share Index rose 0.13% to 65,242 points, while the Top 40 Index rose 0.2% to 58,839 points. The commodities index rose 2.66%, led by Northam Platinum, up 14.07%, and Sibanye Stillwater, up 9.60%, as gold, platinum, silver and palladium mining stocks followed the rise in prices for those metals. The travel and leisure index climbed 1.17% as City Lodge Hotels, Tsogo Sun Hotels, Tsogo Sun Gaming and Sun International gained between 0.56% and 2.98%.
- The rand traded little changed against the dollar on Friday as markets bet that a weak U.S. jobs report would not deter the Federal Reserve from reducing its securities purchases as early as Nov. November. At the close of trading, the rand was trading around R14.93 against the dollar, 0.23% firmer.
- Gold prices were unchanged this morning as gold prices were torn between a weak dollar and fears that the US Federal Reserve may start reducing stimulus this year despite weak jobs data. Oil prices rose earlier and continued their multi-week gains as major producers hold back supply and demand for fuel rises as economies try to recover from the coronavirus pandemic. Prices have risen as more vaccinated people are pulled out of holes and boost economic activity, with Brent up for five weeks and U.S. crude up for seven.
PSG Konsult continues to grow
Financial planning and wealth management firm PSG Konsult reported that profits for the six months to the end of August 2021 were up 23% compared to the first half of the previous financial year. More importantly, management indicated that earnings per share (EPS) were 30% higher compared to 2019, before Covid-19 hit. This means PSG Konsult has continued its decade-long track record of growing earnings per share at 15% to 20% per year. Chief executive Francois Gouws says all three of its businesses – PSG Wealth, PSG Asset Management and PSG Insure – delivered growth in revenue and profit during the period despite the challenging operating environment.
Sanral’s total liabilities exceed R140 billion
The South African National Roads Agency (Sanral) has released its latest integrated annual report (368 pages in total) for the year ended 31 March 2021, which shows that total liabilities amount to a staggering R140,4 billion (2020: R130,6 billion). Sanral is not only facing increasing objections to paying tolls, but also mounting liabilities. Cabinet has been tasked with making a decision on the future of the e-tolling system in Gauteng. You would think that the biggest liability would be the debt, which stands at R45.9 billion (2020: R47.8 billion). But no, there is a liability that is classified as. ‘Deferred income’, which at the end of the financial year amounts to R79 billion (2020: R68 billion), which is 56.3% of the total liability (2020: 52.1%).