Standard Bank to proceed with dividend payment

Mondi isn't paying its final dividend for 2019. Standard Bank is - but may not pay any dividends or executive bonuses this year.

As companies grapple with the potential impact of Covid-19 the outcomes are varied. While many - particularly in the property sector - have put off paying dividends that have already been proposed, banks are going ahead with their 2019 payouts but have cautioned that there may be no distributions for 2020. Last week, the Reserve Bank's Prudential Authority issued a guidance note advising them to hold onto their cash this year due to the stress the coronavirus was likely to add to the banking system.

Meanwhile, Afrimat released a bullish trading statement ahead of results that are expected to be published on 22 May. However the materials group says it may utilise an extension the JSE is granting companies due to the impact of the lockdown. Annual general meetings are also being affected. UK wealth manager Quilter is going ahead with its AGM next month but has advised shareholders not to attend and rather make use of online facilities.

In its latest report on the current turmoil on global markets, "The volatility of low volatility" Ingham Analytics notes that low volatility stocks haven't been spared from the massive sell-off in equity markets. The note is another valuable analysis by Ingham Analytics to help traders and investors navigate this unprecedented turbulence and you can find it here.

Staying with volatility, "The Market's Twin Towers" Part 2: Volatility follows on from "The Market's Twin Towers" Part 1: Liquidity and is a must read as a complement to that. Top trader Andrew Kinsey explains why volatility is often overquoted and substantially misunderstood and looks at the paradigm shift in markets between 12 February and 12 March 2020. Is this extreme volatility likely to persist? Click here to read.

Finally, in The Week Ahead, Chris Gilmour looks back on some of the key events that influenced the markets last week and what to watch out for over the next few days, including results from Capitec today and Zeder Investments tomorrow.

I hope you have a good week. Please stay safe.

Stephen Gunnion

Managing Editor, InceConnect

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