HANNA ZIADY: Good evening and welcome to the SAfm Market Update with Moneyweb. My name is Hanna Ziady, in for Siki Mgabadeli this evening.
Earlier today I caught up with Siyabonga Gama, who is group CEO of Transnet. Mr Gama assured me that South Africans can look forward to fewer large trucks on our roads as Transnet looks to transport more and more consumer and manufactured goods by train as a way of diversifying its earnings, really, away from the transport of commodities – the demand for which has of course fallen – and that did reflect in Transnet’s results for the year to March. Those results came out today.
Then the South Gauteng High Court seems to have fairly quietly made a very important judgment today when it ruled that the Ekurhuleni Municipality cannot hold a current property owner liable for a previous property owner’s electricity bill. We are going to be chatting to Schindlers Attorneys about why this ruling is important and what it means for homeowners.
And then in our Mining Monday feature with Warren Dick, our Mineweb editor, we’ll look at the recent gold price rally while Moody’s thinks it will boost the free cash flow of some of our gold mining stocks here in South Africa – that gold price rally. And also a court decision came out late on Friday that bolsters the silicosis class action. All that coming up.
Our market watcher this evening is Carmen Mpelwane, portfolio manager at Seriti Asset Management. But first up, Tumisang has your business news headlines.
TUMISANG NDLOVU: Thanks, Hanna. Good evening.
Emerging market stocks and currencies continue to fall following the outcome of the Brexit referendum. The historic news that Britain voted to exit the European Union was announced on Friday and roiled markets amid a concern that a protracted crisis would [stunt] global economic growth. Steven Barrow of Standard Advisory London Limited shares his views on what’s expected next.
STEVEN BARROW: The EU is going to play hardball with the UK and you could argue that maybe it’s sort of cutting off its nose to spite its face in doing that. But, what it doesn’t want to do is suggest to other Eurozone countries that leaving the EU is an easy option.
TUMISANG NDLOVU: South Africa is said to be closer to a minimum wage. It’s reported that the matter is likely to be concluded within the next three months. That’s according to concessions by the National Economic Development and Labour Council, also known as Nedlac.
And finally, Transnet has recorded positive gains in full-year earnings and revenue in the 12 months through March. Revenue increased 1.7% while earnings went up 2.6%. The parastatal has attributed this to gains on exports as well as a rise in South Africa’s state-owned container and automotive volumes.
TUMISANG NDLOVU: Financial indicators this hour: the rand is at R15.47/dollar, R20.42/pound and R17.05/euro. Gold is at $1 318.40/oz, platinum at $976/oz and Brent crude oil at $47.21/barrel.
More on these stories and other business news on our website.