SA Market Overview | 26 - 30 August
28-08-2024
Outline
- The South African rand remains stable at R17.76. It is trading close to July 2023’s low of R17.41 against the dollar. Investors are closely watching upcoming local market data, including July's producer inflation on Thursday, and various financial indicators on Friday. These reports may provide insights into the country's economic health.
- Eskom has reported a significant turnaround by implementing its recovery plan, which has led to improved plant performance and staff morale. Its energy availability factor (EAF) has risen from 50% in 2023 to 67% and further improvements are expected as more capacity comes online, potentially ending load shedding by April 2025. This progress is attributed to focused maintenance efforts, reduced unplanned outages, and the introduction of performance incentives for employees.
Overview
- Discovery Bank has reached its one-millionth client two years ahead of schedule, reflecting the success of its shared-value model and digital banking platform. CEO Hylton Kallner credits this milestone to the trust clients have in the bank's innovative approach to managing finances. Since its launch in 2019, Discovery Bank has amassed R16.67 billion in deposits and seen a 20% growth in advances, reaching R5.75 billion by mid-2024.
- Italtile, the largest tile and bathroom retailer in South Africa, has reported an 8% drop in headline earnings to R1.5 billion for the year ending June 2024. These results led to an 8% cut in its ordinary dividend to 49 cents. However, the total dividend surged 140% to R1.27 due to a special dividend of 78 cents made possible by the group's R1.8 billion cash surplus. The company also benefited from R76 million in property sales proceeds and plans to reduce capital investments in the coming year with 2024 spending already down 9% to R609 million. The share price surged over 15% for the year.
Disclaimer:
*Any opinions, views, analysis or other information provided in this article is provided by BCS Markets SA trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BCS Markets SA does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information provided by third parties. You must rely upon your judgement in all aspects of your investment decisions and all decisions are made at your own risk. BCS Markets SA and any of its employees shall not be responsible for and will not accept any liability for any direct or indirect loss including without limitation any loss of profit which may arise directly or indirectly from use of the market commentary. The content contained within the article is subject to change at any time without notice. BCS Markets SA is an authorised financial services provider FSP No. 51404.
** This article was prepared by BROKSTOCK analyst Maboko Seabi
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BCS Markets SA (Pty) Ltd. is an authorized Financial Service Provider and is regulated by the South African Financial Sector Conduct Authority (FSP No.51404). BCS Markets SA Proprietary Limited trading as BROKSTOCK.
The materials on this website (the “Site”) are intended for informational purposes only. Use of and access to the Site and the information, materials, services, and other content available on or through the Site (“Content”) are subject to the laws of South Africa.
Risk notice Margin trading in financial instruments carries a high level of risk, and may not be suitable for all users. It is essential to understand that investing in financial instruments requires extensive knowledge and significant experience in the investment field, as well as an understanding of the nature and complexity of financial instruments, and the ability to determine the volume of investment and assess the associated risks. BCS Markets SA (Pty) Ltd pays attention to the fact that quotes, charts and conversion rates, prices, analytic indicators and other data presented on this website may not correspond to quotes on trading platforms and are not necessarily real-time nor accurate. The delay of the data in relation to real-time is equal to 15 minutes but is not limited. This indicates that prices may differ from actual prices in the relevant market, and are not suitable for trading purposes. Before deciding to trade the products offered by BCS Markets SA (Pty) Ltd., a user should carefully consider his objectives, financial position, needs and level of experience. The Content is for informational purposes only and it should not construe any such information or other material as legal, tax, investment, financial, or other advice. BCS Markets SA (Pty) Ltd will not accept any liability for loss or damage as a result of reliance on the information contained within this Site including data, quotes, conversion rates, etc.
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