PMI gains, offshore investors sell stocks

SOUTH Africa’s Purchasing Managers’ Index rose in August to its highest level in six years on improving demand in manufacturing. It was at 56.5 from 52.2 in July, according to data from survey sponsor Kagiso Tiso Holdings. SPUR Corporation said that for the year to June it was expecting to report growth of between 19% and 24% in headline earnings a share and diluted headline earnings a share compared with a year earlier. THE FNB house price index showed a slight acceleration in its yearon-year growth rate‚ to 6.4% in August from 6.3% in July. The average value of homes transacted in the house price index was R894 600. GRINDROD, the diversified services and logistics group‚ lifted its interim dividend by 14% to 20c a share after its freight services and financial services divisions delivered strong performances during the period. DISCOVERY Holdings, South Africa’s largest health insurer, posted a 19% rise in full-year earnings after writing new business. It said diluted normalised headline earnings a share totalled 496c, compared with 416.9c a year earlier. OFFSHORE investors sold a net R1.5-billion in South African bonds and a net R837-million in South African stocks in the week ending August 30, data from the Johannesburg Stock Exchange showed. CIVIL engineering and construction company Wilson Bayley HolmesOvcon reported a 1.8% decrease in full-year diluted headline earnings a share to 1 139.4c. Its dividend a share was up 4.5% to 368c from 352c a year earlier. THE outlook for South Africa’s banking system remained negative‚ said Moody’s Investors Service. Its outlook reflected the sluggish operating environment‚ the banks’ sizable holdings of sovereign securities and funding challenges. BUSINESS confidence in South Africa edged lower to 90.5 in August from 90.7 in July as labour unrest, fragile economic growth, rising inflation and a weaker rand hit sentiment, the SA Chamber of Commerce and Industry said. AGRICULTURAL and financial services company Afgri said full-year headline earnings a share fell 32.9% to 38c. The main reason was its poultry division reported a R229.2-million loss before tax‚ after impairments of R116.8-million.