Merafe withholds dividend after profit plunges on weak chrome prices – Business Day
The mining company, whose primary source of revenue is a 20.5% stake in a chrome joint venture with globally diversified miner and commodity trader Glencore, reported profit of R165m for the six months to end-June, compared with a profit of R425m the year before. Article by Allan Seccombe with comment from Mandi Dungwa – portfolio […]
Declining economy catches Mpact flat-footed – Business Day
The decline in economic growth in SA and poor export conditions have left Mpact, the largest paper and plastics packaging and recycling business in southern Africa, with excess stock in the six months to end-June. Article by Siseko Njobeni with commentary by Dirk van Vlaanderen – associate portfolio manager at Kagiso Asset Management. view article
Omnia prices R2bn rights issue – Moneyweb
Omnia to use the proceeds to reduce its debt. The firm said it had also agreed an underwriting deal with investors Allan Gray, Coronation Asset Management, Foord Asset Management, Kagiso Asset Management, Old Mutual Investment Group and Prudential. Article by Nqobile Dludla. view article
Sasol: investors dump portfolio stalwart – Financial Mail
Sasol’s costly Lake Charles project has battered its shares to 10-year lows, but a rights offer is not on the cards – yet. Article by Lisa Steyn with commentary by Abdul Davids,head of research at Kagiso Asset Management. view article
Strong support for Omnia rights issue – inceConnect
The chemicals, fertiliser and explosives group says its R2 billion capital raise was fully subscribed. The vast majority of Omnia’s shareholders have taken up their rights in a deeply discounted capital raise aimed at recapitalising the group. Article by Stephen Gunnion. view article
Falling rentals bite SA Corporate’s dividend – Business Day
SA Corporate Real Estate, which has recently rebuffed takeover offers from Dipula Income Fund and Emira Property Fund, expects distributions to fall as much as 4% in its financial year as it battles with falling rental rates due to SA’s tepid economic conditions. Article by Karl Gernetzky with comment from Rahgib Davids – investment analyst […]
Sasol’s coal sale mystery – Financial Mail
Sasol’s silence on the possible sale of its local coal assets has stoked speculation that its balance sheet is in worse shape than feared. Article by Lisa Steyn with insights by Abdul David’s, head of research for Kagiso Asset Management. view article
Lower prices and soft demand hit Mondi – Business Day
Paper and packaging group’s earnings dive 18% in the three months to end-September. The lower average prices and reduced demand for its products that Mondi experienced in the three months to end-September are likely to spill into the fourth quarter. Article by Karl Gernetzky and Siseko Njobeni with commentary by Dirk van Vlaanderen, associate portfolio […]
Hunt for palladium riches sends SA miners abroad – Moneyweb
The volatility in SA has miners seeking to balance exposure. Southern Africa is home to the world’s richest platinum deposits, but when Impala Platinum pondered how to invest its windfall profits, it chose North America instead. Article by Felix Njini (Bloomberg) with commentary by Mandi Dungwa, portfolio manager at Kagiso Asset Management. view article
Conditional investing calls for a creative approach – Moneyweb
Investors should expect a different return profile from local Shari’ah funds. There are currently 1 607 unit trusts and exchange-traded funds registered in South Africa. According to analysis by Glacier, just 24 of those are Shari’ah compliant. Article by Patrick Cairns with commentary by Jihad Jhaveri, head of process at Kagiso Asset Management. view article