| What recession? That was the reaction from some commentators to Shoprite's full-year results, released on the same day that Stats SA revealed that the economy contracted by an annualised 51% in the second quarter of the year from three months earlier. While the annualised number is misleading due to the shock that was specific to the April to June period, economic activity still shrank by 16.4% over the quarter and the lingering impact on jobs, demand and production will be felt in the months, if not years to come. Back to Shoprite though, and it appears that the retailer has been stealing a march on its competitors, with sales growth supported by market share gains over the period. The market was clearly impressed, sending its shares 11% higher yesterday. Aspen also rose after revealing a buyer for its European thrombosis business which will help the pharmaceuticals group continue to reduce its debt. Merafe Resources felt the impact of the lockdown on the mining sector, posting a first-half loss due to lower production and weaker demand and prices for its ferrochrome and chrome ore - and a hefty impairment. The agriculture sector posted growth over the quarter and Labat Africa will be hoping to add to that with its proposed acquisition of a cannabis farm in the Eastern Cape. Finally, in Doubts about Dube, Allan Greenblo, editorial director of Today's Trustee, questions Finance Minister Tito Mboweni's appointment of Dube Tshidi as interim commissioner of the Financial Sector Conduct Authority. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics Banks rallied yesterday despite GDP numbers showing a 17% year-on-year decline in Q2 GDP in 2010 money whilst H1 GDP declined 8.7% on the same basis with the finance and related activities less badly impacted at 6.6% and 1.8% respectively. Capitec hit an intraday high of over R900. If you're interested in the banks sector, then Ingham Analytics latest analysis on Capitec entitled "Looking for dips" will be of interest. The note gives context to earnings over a three-year forecast period and importantly the state of the balance sheet. Interim results are scheduled for 30 September and will be poor, as will full year results - but for Ingham Analytics the big question is what about the year after? You may also want to keep an eye out for a new Andrew Kinsey note on Thursday, entitled "The devil incarnate, Softbank?" | 