Shoprite Group Results Released: The half year results for H1, ending 30 June 2024 were released this morning, and indicated that the group had hit double-digit growth with sales reaching R121 billion (ZAR) Group sale of merchandise, an increase of 13.9% to R121.1 billion. Supermarkets in South Africa, sale of merchandise, increased by 14.6% to R97.5 billion . Diluted headline earnings per share (DHEPS) increased by 7.6% to 621.4 cents (H1 2023: 577.5 cents). The Interim dividend per share increased by 7.7% to 267 cents (H1 2023: 248 cents). The Group opened a net number of 369 stores during the past 12 months, with the Group’s supermarket operations creating 2 202 new jobs over the six months.
South African Ex-President Expelled: Former SA president, Jacob Zuma was expelled from the National African Congress party after an enquiry found that he had “actively impugned the integrity of the ANC and campaigned to dislodge the ANC from power, while claiming that he had not severed his membership,” Fikile Mbalula, ANC Secretary General said in a statement yesterday.
Ethiopian Currency Collapses: The value of Ethiopia’s currency has fallen by more than 30% against the US dollar, after the government relaxed currency restrictions yesterday, according to the Commercial Bank of Ethiopia. The government had decided to reverse its long-standing policy of fixed exchange rates in order to win some leverage for a loan of $10.7 billion, from the International Monetary Fund and the World Bank. Traders fear that the ongoing low economic growth rate, together with the currency weakness, will see a run on foreign currencies that will leave the country unable to meet foreign debt payments.
Olympic Highlights:
- Cycling: Mountain biker Alan Hatherly secured Team South Africa’s second medal at the Paris Olympics 2024 when he picked up bronze in the men’s cross-country race.
- Women’s Swimming: South African Swimming champion Tatjana Smith (Schoenmaker) won Africa’s first Gold Medal in the 100m breaststroke final last night bringing the medal tally for South Africa to three and equal to the medal count in the Japan Olympics four years ago. Smith who won two medals, one gold and one silver, in Japan, will also compete in the 200m Breaststroke event and will be looking for her second gold medal in Paris.
- Medal Count: South Africa – now placed 12th in the medal rankings with x3 medals (1xGold, 2x Bronze), Tunisia 1x Silver medal, Egypt 1x Bronze Medal.
- Basket Ball Victory for South Sudan: South Sudan’s victory over Puerto Rico in the Olympic men’s basketball competition has been welcomed by the nation. The Bright Stars, who are ranked 33rd in the world rankings, started their Group C campaign with a 90-79 win over their higher-ranked opponent. The result has been a huge source of pride for the world’s newest nation – on what was the team’s first appearance on the Olympic stage.
C-Spire withdraws Advertising from Olympic Games: Controversy over a scene in the opening ceremony in Paris, that mocked the Christian faith, has shocked many around the world with the French Bishops conference calling the scene a disgrace. The backlash has led to one of the key Paris Olympic advertising sponsors, Tech company C-spire to withdraw its Advertising sponsorship deal for the Olympics stating that the opening ceremony had made a mockery of one of the significant Christian events and faith.
World Markets: The escalating tensions in Gaza between Israel and Hezbollah, along with some caution ahead of tomorrow’s US FOMC meeting, have given the safe-haven Dollar a boost. The DXY index is up at 104.56, with the Dollar holding firm at 1.0825 against the Euro, 1.2858 against the Pound, and 154.58 against the Yen. Emerging Market currencies traded weaker yesterday with the Rand down 1.15% at one point as it touched R18.52 before managing to pull back to close at R18.44.
Commodities mixed in a quiet trading market: Commodity prices are mixed this morning, after a positive day yesterday, with a very quiet Asian trading session this morning as traders await tomorrow’s Fed and BOJ monetary policy meetings. Precious metals are marginally firmer this morning but base metals have opened in the red. Brent crude fell nearly 2.0% to $79.78 yesterday on rising demand concerns, notably out of China, and a stronger Dollar offset the geopolitical fears. Brent crude has opened a further 0.4% lower at $79.48 this morning, while WTI is at $75.49.
