Here’s what caught our attention on Monday:
1. JSE imposes censure on Pepkor Holdings
The JSE has imposed a public censure and a fine of R5 million on Pepkor, formerly Steinhoff Africa Retail, after it was found that the company breached certain rules ahead of listing on the JSE. According to a statement on Sens, Pepkor failed to disclose its Domestic Medium-Term Note (DMTN) Programme guarantee to Steinhoff Services and its Business Ventures Investments (BVI) guarantee in its pre-listing statement, in accordance with the IFRS. The JSE said R1 million of the R5 million is suspended for a period of two years.
2. Pepkor results
Pepkor has released its first financial results since being renamed (previously Steinhoff Africa Retail). The company is reporting a headline loss per share of 84.5 cents for the six months ended September 30, 2018. Revenue increased by 10.9% to R64.2 billion and operating profit from continuing operations increased by 10.7% (this excludes one-off costs). The company says that the clothing and general merchandise segment delivered a good performance despite the tough local trading conditions. Pepkor is declaring a maiden dividend of 27.8 cents per share for the period.
3. State capture inquiry
The Commission of Inquiry into State Capture will on Monday hear the testimony of National Treasury’s chief director of communications, Phumza Macanda, alongside Mzwanele Manyi, the former head of GCIS. The testimonies are expected to centre around the events that took place in Treasury during Zuma’s time as president as well as what lead to the surprise cabinet reshuffle in December 2015.
Update to follow.
4. Dan Matjila resigns
The CEO of the Public Investment Corporation, Daniel Matjila resigned with immediate effect on Friday. Matjila had come under fire for allegedly using funds from the PIC for personal reasons and for making careless investment decisions. The PIC board accepted Matjila’s resignation. A new CEO has not yet been appointed.
5. Rand update
The rand steadied over the course of the weekend, sitting at R13.81 for the better part of Sunday, but later swung between marginal losses and gains during the early hours of Monday morning. At 8:48 the rand was at R13.79 to the dollar.