Hits&Misses

Fuel price cut slowed inflation, Nene axing affected SA economy

JANUARY’S R1.22/l drop in petrol and R1.54/l fall in diesel helped inflation slow more than expected. Inflation, as measured by the annual change in the consumer price index, slowed to 4% in January from 4.5% in December, data from Stats SA showed, beating economists’ consensus that it would slow to about 4.3%.

KUMBA Iron Ore paid a handsome dividend, returning all of its R9.7bn in annual headline earnings to shareholders despite a drop in profit. Kumba, SA’s largest iron ore producer, reported post-tax profit of R12.7bn, down from R16bn the year before. CAPITEC’S share price pushed to a record, having gained 77% from a low it reached last year in the wake of a scathing report from short-seller Viceroy Research. The bank’s continued customer growth and forthcoming acquisition of Mercantile Bank are factors behind its outperformance of the JSE’s banking index. SIBANYE-Stillwater expects its full-year attributable loss to be greater than guidance in a trading statement last week, it said, after a review of tax changes in the US. The gold and platinum miner’s shares fell into negative territory on the news that it expects the loss to reach R2.5bn rather than R1bn because of the changes.

NATIONAL Treasury economist Catherine MacLeod said Jacob Zuma’s axing of Nhlanhla Nene as finance minister in 2015 had a significant long-term effect on SA’s economy. MacLeod‚ who was testifying before the state capture inquiry‚ said political uncertainty had “real costs” and that Nene’s removal had a “long-lasting” impact.

TIGER Brands, like its competitors in the food-producer arena, said in a trading update for the four months to end-January that it had not been able to fully pass on higher input costs to consumers in the depressed trading environment.