Trade gap cut, but retail sales stutter

SOUTH Africa has cut its 2012 trade deficit to about a third of the previously stated shortfall after adjusting the data to incorporate trade with its neighbours, the South African Revenue Service said.

PLATINUM-mining company Lonmin posted a forecast-beating pretax annual profit of $140-million (about R1.4-billion), recovering from a heavy loss last year as both sales and efforts to contain cost increases beat targets.

THE seasonally adjusted trade activity index, which indicates sentiment about current trading conditions‚ rose by five points to 55 in October from 50 in September‚ the SA Chamber of Commerce and Industry said.

CELLPHONE operator Vodacom reported an 11% increase in first-half earnings after a strong performance in its home market. Headline earnings per share rose to 438.1c a share from 394.6c a year earlier. DISCOUNT retailer Mr Price, South Africa’s third-largest clothes retailer by value, posted interim earnings growth of 22% because of sales growth and said it planned to open more than 40 stores in the second half.

SOUTH Africa’s retail sales grew at a sluggish 0.2% in September compared with the same month last year after expanding by a revised 3.2% in August, Statistics South Africa said. Economists had expected sales growth of 2.5%.

OFFSHORE investors sold a net R4.5-billion of South African bonds in the week ended November 8 and a net R838-million of South African stocks, according to data from the Johannesburg Stock Exchange.

JUNIOR construction group Esorfranki said basic interim earnings a share were expected to be between 94% and 96% lower compared with the previous corresponding period. The results are expected on November 29.

ILLOVO Sugar, a unit of Associated British Foods, said full-year earnings were likely to be flat or rise by a maximum 10%. It added that an expected rise in sugar output might assist in boosting earnings.

WALMART-owned Massmart reported a weaker-than-expected 8.3% rise in sales to R59.7-billion for the 46 weeks to November 10‚ affirmation of the downward trend in consumer spending.