It can't have come as much of a surprise after it let the cat out the bag due to speculation last month, but PSG plans to go ahead and unbundle most of its stake in Capitec. Due to the massive rise in Capitec's share price in recent years as customer numbers ballooned, PSG's stake in the bank now accounts for two-thirds of its sum-of-the-parts value. That's not reflected in its share price, however, and it wants to narrow the big discount its stock trades at. As a PSG shareholder, if the transaction goes ahead you'll still own a stake in a much smaller investment holding company, topped up with directly-held Capitec shares.

There were no surprises in half-year result from Pepkor or a trading update from Woolworths either: both companies have suffered the impact of the lockdown, particularly last month when there weren't allowed to sell clothes or general merchandise. ADvTECH is also starting to feel the effect, with many families unable to afford their school and college fees. Don't expect dividends from any of them this year.

Arrowhead Properties has also held off on paying an interim dividend but says it will reassess the situation with the release of its full-year results in November. And despite a successful turnaround at its Westcon International business and a strong set of full-year results, Datatec is also remaining cautious and withholding a final dividend.

More on all those stories to follow in today's newsletter.

Have a good day and take care.

Stephen Gunnion

Managing Editor, InceConnect

Take a look at the latest Insights and sector reports From Ingham Analytics.

With interest rates in South Africa being cut yet again, Ingham Analytics has banking and financial services-relevant research that is timely for shareholders and customers exposed to this sector. Subjects like quantitative easing, monetary policy, portfolio capital flows, inflation and asset prices at this time of Covid-19 turmoil, and with it an induced recession due to lockdown, all speak to this. Notes such as "Say buddy, can you spare a dime?", "South African Reserve Bank monetary policy emasculated" and "Poseidon and the other banking gods" provide both a local and international perspective in this regard.