Coffers fuller, but car sales are down

SOUTH Africa’s net gold and forex reserves beat expectations in February, rising to $45.3-billion from $44.9-billion in January, Reserve Bank data showed. Gross reserves rose to $50.1-billion from $49.3-billion. SOUTH Africa’s business confidence index rose to 91.9 in February from 90.5 in January, although economic activity remained subdued, a survey by the South African Chamber of Commerce and Industry showed. ACTIVITY in the manufacturing sector picked up in February‚ according to the latest Kagiso purchasing managers index. The seasonally adjusted index rose 1.8 points to 51.7 from 49.9 in January. FURNITURE group Steinhoff posted a 41% rise in first-half profit, bucking the trend in a sector hit by weak consumer spending thanks to favourable currency swings. Headline EPS was 243c against 171c a year earlier. SOUTH Africa’s seasonally adjusted HSBC purchasing managers’ index rose to 51.5 in February from 50.3 in January as private sector companies reported an increase in activity in the month. SOUTH African vehicle sales declined 3.1% year on year to 51 814 units in February, according to figures from the National Automobile Association of South Africa, which warned of tough times for the domestic market. MTN Group posted a 27% rise in full-year earnings, but it revealed a drop in revenues in its home market, partly because of fierce competition. Nigeria overtook South Africa to become its biggest revenue earner. THE Merchantec CEO confidence index fell to a five-year low of 51 in the first quarter, from 55.3 points in the fourth quarter. The compilers reported a decrease in CEO confidence with regard to securing debt and equity capital. FURNITURE retailer and provider of unsecured loans JD Group is going through a bad patch in trading that may last as long as four years, according to Steinhoff International Holdings, its majority shareholder. BULLION producer Harmony Gold said an investigation into a fire at its Doornkop mine last month that killed nine miners would take at least another four weeks. The fire followed a seismic event and rock fall.