Signs of recovery in construction

SOUTH Africa’s economic growth quickened to 3% quarter on quarter in the second quarter of 2013 compared with 0.9% in the first quarter. The economy grew 2% on a year-onyear basis in the second quarter. FOOD, cars and shipping conglomerate Bidvest reported a 6% increase in full-year profit as a strong showing in Asia and positive currency swings offset weak demand in South Africa and Europe. WOOLWORTHS shares surged nearly 6% after the upmarket retailer met expectations with a 27.3% rise in full-year profits, indicating that its high-end customer base is weathering high personal debt challenges. CONSTRUCTION and engineering group Basil Read reported a 196% rise in headline earnings a share to 43.69c for the six months to June despite a tough trading environment in the local construction sector. THE largest construction company on the JSE by market capitalisation‚ Murray & Roberts‚ reported that headline earnings a share swung from a loss of R2.61 in 2012 to a profit of R1.32 in 2013. SOUTH Africa’s headline producer inflation quickened more than expected to 6.6% year on year in July from 5.9% in June, said Statistics South Africa. Prices at the factory gate rose by 0.7% month on month. GROWTH in credit demand from South Africa’s private sector slowed to 7.41% year on year in July from 8.91% in June, Reserve Bank data showed on Friday. Expansion in M3 money supply braked to 7.36% from 9.18%. OFFSHORE investors sold a net R2-billion in South African bonds and bought a net R1.6-billion in South African stocks in the week ending August 23. This is according to data from the JSE. JD GROUP reported a 10% drop in full-year earnings and hiked its provision for bad loans, as customers continued to suffer. Headline earnings a share totalled 395c in the year to June, from 441c a year earlier. INVESTMENT holding company Brimstone reported a 68.3% plunge in headline earnings a share for the six months to June, marked by “challenging conditions in the insurance underwriting market”.