VIEW ONLINE
05 May 2020
Hello Voornaam,

The JSE started the week on the back foot as traders and investors returned from the Workers' Day long weekend to news of renewed trade tensions between the US and China, which sent Wall Street lower on Friday. US President Donald Trump threatened to impose new tariffs on China in retaliation for the coronavirus crisis.

Financial and resources stocks were worst hit, with gold producers benefitting as the gold price moved back above $1,700 an ounce. Sasol was one of the big losers, dipping 6.2% after last week's brief recovery for the embattled oil and chemicals group.

Although Sasol has hedged a large portion of its production until the end of June, Ingham Analytics says this isn't enough to boost earnings and it has adjusted EPS estimates down again. It previously cautioned on Sasol's guidance on profits from the Lake Charles Chemicals Project in the US and now questions why the project will make such a large loss for the year, particularly as it should have a feedstock pricing advantage. There are other concerns too around the balance sheet. Is a rights issue doable? Do you buy or sell the stock? Get some answers in Ingham Analytics' latest note on Sasol, "A raw state".

In today's newsletter, after five weeks of almost no sales Famous Brands is starting home deliveries but says it doesn't know how viable they will be and Phumelela has warned that it faces possible liquidation if it can't raise capital while the horse racing industry remains in lockdown.

Meanwhile, the property industry is continuing to take measures to guard against the impact of Covid-19. Redefine Properties is holding back on an interim dividend for now and Equites Property Fund has withdrawn from a deal to build a new mega warehouse for Pepkor.

Good news for Imperial Logistics though: it has sold its European shipping businesses as it focuses on African trade and logistics routes. Its shares responded positively yesterday.

Have a good day and stay safe.

Stephen Gunnion

Managing Editor, InceConnect


Join 3340 other SMEs in South Africa who have received business loans from Funding Hub

The InceConnect CPD Hub caters for time-short financial professionals looking to complete their CPD online, with their phone or PC. We offer FREE CPD hours and specialist content covering:

Data Sciences & Machine LearningEthics & Practice StandardsFinancial Analysts & PlanningIncome Tax, CGT, TrustsInsuranceInvestingProfessional Skills & Abilities

Take a look at the InceConnect CPD Hub.


Todays Latest Headlines

Famous Brands dubious about home delivery
The casual dining restaurant group says it has started reopening some of its local restaurants for delivery-only services.
SHARE THIS STORY
Phumelela faces possible liquidation
Unless talks to raise capital are successful it will have to decide whether there is a reasonable prospect that its business can be rescued.
SHARE THIS STORY

Redefine cautious as fundamentals deteriorate
The real estate investment trust has withdrawn full-year guidance and is holding back on its interim dividend.
SHARE THIS STORY
Equites holds fire on Pepkor warehouse
Due to the impact of Covid-19, the property fund says it would not be prudent to proceed on the original commercial terms.
SHARE THIS STORY

Imperial offloads European shipping business
The logistics group says shipping was identified as being non-core to its Gateway to Africa strategy.
SHARE THIS STORY
Kimpton Kawana Bay Resort. A World-Class Citizenship by Investment Opportunity
There has been increased demand from High Net Worth Individuals in South Africa seeking secondary citizenship as a way to protect themselves and their families from...
SHARE THIS STORY

Company Notices and Announcements
INVICTA HOLDINGS LIMITED
SHARE THIS STORY
CORPORATE ANNOUNCEMENT BY: REDEFINE PROPERTIES LIMITED
SHARE THIS STORY
CORPORATE ANNOUNCEMENT BY: IMPERIAL LOGISTICS LIMITED
SHARE THIS STORY

View All Company Notices And Announcements

This email was sent to [email protected] on 2020-05-05
INCE - A trusted brand in investor
communications for almost 100 years.
SUBSCRIBE | UNSUBSCRIBE
Powered by Ince (Pty) Ltd | 42 Wierda Rd W, Wierda Valley | Sandton | Gauteng | 2196 | South Africa