| Tuesday 24 August 2021 Good morning Voornaam,
By usual Monday standards, yesterday was a relatively quiet day on the JSE for newsflow. The market itself was busy, with a 1.24% rally in the JSE All Share Index that was welcomed by investors who were still nursing bruises from last week.
The sea of green indicators was driven by the resources index, which benefitted from a particularly strong performance among platinum stocks. Palladium prices increased 5.7% on the day. Even the rand had a better day against the dollar, closing 1.1% stronger.
In a world of strange market moves, yesterday's Stefanutti Stocks share price move ranks right up there. The company announced that the sale of its mining division has fallen through. This would've raised R80m in proceeds for a company that has a market cap of R85m. The group's liabilities far exceed its current assets, yet the s hare price increased 4.4% on this news.
It literally makes no sense to me. Perhaps people misread the SENS announcement.
The construction company that is getting the right kind of attention is Murray & Roberts. The current order book of R60.7bn is at an all-time high. After recording a R17m loss in the 2020 financial year, the company is on track to deliver earnings before interest and tax of between R530m and R560m this year. A headline loss is expected due to the impact of discontinued operations, but continuing operations are now profitable.
JSE-listed REIT Resilient has sold more shares in NEPI Rockcastle, raising R1.2bn in the process. This cash has been used to reduce debt.
Northam Platinum jumped 7.9% on the news that the Zambezi Scheme transaction has now been completed. The corporate advisors will be enjoying the fruits of that deal for many years to come , as the fees involved were beyond eye-watering.
In other deal news, Super Group confirmed that its acquisitions of LeasePlan Australia and New Zealand are now unconditional, which means that all requirements have been met for the deal to be completed.
Today's feature article goes to Shoprite, which is always a critical earnings result in the South African economy. Things are complicated in the latest reporting period because of the effect of an extra week of reporting. I explain this in more detail in the article.
My other article today is on Bidvest, which has confirmed strong growth in earnings. Year-to-date, Bidvest is up nearly 30%, part of a basket of JSE-listed companies that has recovered strongly.
Let's hope for another green day on the market!
The Finance Ghost
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