Here’s what caught our attention on Wednesday:
1. Prosus opens at R1 238/ share
Shares in Naspers-spinoff Prosus surged on Wednesday after its debut listing on Amsterdam’s Euronext stock exchange. Prosus opened at R1 238 a share on the JSE. At 9:34 am it was trading at R1 214 a share. At the same time Naspers was trading at R2 399.99 – R1 122.83 lower (or 31.87%) than Tuesday’s close, according to Moneyweb. Bloomberg is reporting that the entity will become the third-largest listed company in the Netherlands. The listing is an opportunity for Naspers CEO Bob van Djik to attract more international investors to assign value to the company’s non-Tencent assets and to reduce Naspers’s dominance on the JSE.
2. Moody’s trims SA’s 2019 growth forecast
Moody’s Investors Service remains concerned about South Africa’s economic growth trajectory. The rating agency says a number of risks including policy uncertainty, slow implementation of structural reform and an overall depressed business environment are hindering South Africa’s economic revival. As a result, Moody’s cut its economic growth forecast for South Africa to 0.7% for 2019 on Tuesday. The forecast is in line with the Reserve Bank’s economic growth estimates of 0.6%. Moody’s has South Africa’s credit rating at Baa3, the lowest investment-grade level. It will publish its next review of South Africa in November.
3. Growthpoint results
Growthpoint Properties is reporting a 1.1% decrease in headline earnings per share to 158.10 cents for the year ended June 30, 2019. The company’s earnings per share fell by 6.4% to 214.46 cents compared to 229.14 cents in 2018. Revenue increased by 5.7% to R11.6 billion compared to R10.9 billion in 2018. Net asset value per share decreased 0.7% to 2 539 cents for the period. A dividend of 2 181 cents per share is being declared, up 4.6%.
Moneyweb recently revealed Growthpoint’s plan to develop a multi-million rand mixed-use precinct in the heart of Sandton. The Sandton Summit will consist of office, residential, hotel and retail properties, as well as public open spaces. The precinct has already seen around R6 billion in investment.
4. Business Confidence Index
The South African Chamber of Commerce and Industry will publish its Business Confidence Index for August on Wednesday. In July, business confidence dropped to 92, following a marginal increase to 93.3 in June, data shows. July’s decrease is being attributed to negative manufacturing output, low export and import volumes and low vehicle sales according to Sacci economist Richard Downing.
Update to follow.
5. Hlaudi Motsoeneng testifies at the state capture inquiry
The SABC’s former chief operating officer Hlaudi Motsoeneng will be making his second appearance at the state capture commission of inquiry on Wednesday. The commission has shifted its focus to the SABC and has already heard testimony from the SABC’s CEO Madoda Mxakwe, Dr Ben Ngubane and Anton van Vuuren.
On day one of his testimony, Motsoeneng admitted to having meetings with the Guptas on several occasions but also added that he addressed political interferences at the SABC.
Also, don’t forget to catch the Alexander Forbes Foursight Master Class on sustainable investing live on Moneyweb here.