| Tongaat Hulett isn't sitting back while it waits for an independent opinion on whether Covid-19 has scuppered the sale of its starch business to Barloworld subsidiary KLL. Shareholders have already given the deal the go-ahead, as have the relevant competition authorities. The market may not share Tongaat's confidence, however. After a nice improvement in its shares price from when it first announced the sale of Tongaat Hulett Starch until KLL raised the red flag in early May, its shares have lost a third of their value. Due to delays in appointing an independent adjudicator, investors may still have to wait some time for a final determination on the matter. Meanwhile, NEPI Rockcastle has referred the disposal of its Romanian office assets for adjudication after the company buying them failed to meet its side of the sales agreement. Still, both companies are willing to give the deal another go. And Crookes Brothers has had to put its Renishaw Hills retirement village in KwaZulu-Natal back on its books after the buyers pulled out due to the Covid-19 market uncertainty. More on those stories to follow in today's newsletter, along with an improvement in Blue Label Telecom's financial performance - despite taking a R330 million hit as it closed its WiConnect retail stores. PBT Group also expects to report higher earnings but hasn't said whether it still plans to pay the dividend it has been alluding to. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics - inflation buster Ingham Analytics has issued a Trader note entitled "Fighting inflation" which asks a straightforward question. How could you protect yourself? Savings rates have dropped by 250 basis points since January 2020, in line with the repo rate. Stats SA say CPI is 3% but by their own admission that number has been distorted by the Covid-19 lockdown with the sample size significantly restricted. And, as Ingham Analytics have been warning, don't discount the temptation by government to monetise rising indebtedness by stoking inflation. For those investors seeking to keep their purchasing power intact, Ingham Analytics examine an inflation-linked bond, similar in design to the "TIPS" in the United States. You can access that FREE report here. Please also click on the explanatory addendum on the website for further background detail. On the topic of monetary policy "Is the Reserve Bank Father Christmas?" examines the latest Reserve Bank balance sheet. It is R1 trillion in value, mostly gold and foreign exchange reserves. That sounds like a lot? Not at all. It is clear is that the bank is very constrained in what it can accomplish in a Covid-19 induced crisis. Shareholders and customers of JSE listed banks can only hope that the reputation of the central bank is maintained otherwise we are on a slippery slope. Sticking with banking, in their Sunday Weekly email Ingham Analytics discussed Capitec, which they believe stands out from the big four banks. They make the point that the timeliness and quality of disclosure that Capitec is known for is key to depositor, borrower and shareholder confidence - the trading statement on Friday, together with up-to-date banking data for 31 May, speaks to that. | 