SIKI MGABADELI: Good evening and welcome to the SAfm Market Update with Moneyweb. My name is Siki Mgabadeli.
Royal Bafokeng Platinum has swung into a loss, reporting headline earnings down 152.1% to a negative 60.4c. That’s in the six months to June. We speak to them.
Nedbank also out with results today. They beat estimates, and that helped to boost the group’s share price to a record high during intraday trade today. First-half profit is up by 16%.
Then Nkonki held a conference focusing on assisting audit committee chairs and members in the retirement fund industry. It was the first such conference in South Africa. We’ll be speaking to them.
David Shapiro is watching the markets for us today. But first, Tumisang Ndlovu has your business news headlines.
TUMISANG NDLOVU: Thanks, Siki. Good evening.
South African commodity stocks have come under the spotlight as metal prices have tumbled to 13-year lows. Kumba Iron Ore, Royal Bafokeng Platinum and AngloGold Ashanti are among the companies bearing the brunt.
Meanwhile Brent crude oil has reached a six-month low, trading around $50/barrel. That development comes amid speculation that Iranian supplies will exacerbate a global surplus as demand from the US to China slows.
Still on the declining international oil price, analysts say South African motorists can look forward to more petrol-price decreases following a series of fuel-price increases this year, the petrol price will drop by 51c/litre and diesel by between 74 and 76c/litre from midnight. Economist Chris Hart shares his views.
CHRIS HART: The main reason for the cut in the petrol price is that the international oil price came down significantly. Oil has fallen even further and that actually implies that the cut that we are having now will be further extended with a further cut.
TUMISANG NDLOVU: And South Africa is considering using ships to generate gas-based power. The energy department says the suggestion emerged from the submission sent to government on how Africa’s most advanced economy can tackle its current electricity crisis. The department has told parliament that the idea, which would require power ships to dock at ports and supply electricity to the national grid, is being considered in a serious light.
Financial indicators this hour: the rand is at R12.65/dollar, R19.72/pound and R13.86/euro. Gold is at $1 091.70/oz, platinum at $955.95/oz and Brent crude oil is trading at $50.09/barrel.