Globally governments are responding to the economic devastation caused by the Covid-19 pandemic with proposed infrastructure plans and South Africa is no different. Raubex’s interim results were not great, but it did have strong cash flow that enabled the construction group to pay an increased dividend and it’s very well positioned for infrastructure spending. I spoke to CEO Rudolf Fourie, who revealed it is seeing increased tender activity; the next few years should be much better for the group in both energy and roads projects.
The hard lockdown was very challenging for South African retailers operating in the non-essential goods sectors. Fashion and general retail lost over two months of sales. Even as the lockdown levels eased many customers stayed away as their income had taken a hit. Anchor Capital’s Stephán Engelbrecht has gone through the results and updates from SA retailers and, while numbers are down across the board, they’re not nearly as bad as one would have expected – with some even looking fairly attractive at current prices.
My accountant always points out to me that tax paid from my trading means I am making money, which is good, but less tax is always best. I spoke with Petri Redelinghuys of Herenya Capital Advisors about what a trader can deduct from their trading profits before they have to declare the profit as income. Importantly this is for traders, not long-term investors and as always, keep good records in case Sars comes knocking for more details.
PwC published its Africa Oil & Gas Review and it is predicting that peak demand for oil likely occurred in 2019, as demand has collapsed and the recovery will to a large degree focus on renewable energy and to a lessor degree natural gas. This has massive implications for African countries dependent on oil for much of their revenue, but it also creates opportunities. However, the opportunities need to be aligned with workable regulations, as PwC associate director James Mackay pointed out when I spoke to him.
Also this week:
Gary Booysen from Rand Swiss talks Growthpoint raising R4 billion and Nedbank share price up 45% in eight days. Prescient’s Bastian Teichgreeber on the importance of asset allocation vs stock picking and relationship expert Paula Quinsee talks Fogo, the fear of going out, and how friends and businesses can help manage it.