WEDNESDAY, 12.45PM:
THE official consumer inflation rate in February fell to an annualised 5,4% — 0,2 of a percentage point lower than January’s figure — according to the Central Statistical Service.
Month-on-month, prices rose 0,3% from January to February. Chief contributor to increased prices in February was food, which saw a 0,1 percentage point increase in the index. The food price index for February food inflation was an annualised 5,9% — 0,4 of a percentage point lower than January’s figure.
An alternative expression of the change in the Consumer Price Index is to annualise the percentage change between the average index of the three months up to February 1998 and the average index of the previous three months. This approach, when using seasonally adjusted data, shows an annualised increase of 3,2% (0,1 of a percentage point higher than January’s figure), while unadjusted data shows an increase of 3,7%.
BUSINESS BRIEFS
BUS SETTLEMENT REACHED
AN eleventh-hour settlement has averted a proposed nationwide strike by bus workers, after the South African Bus Employers’ Association agreed to workers’ demands for a 10,5% wage increase. Transport and General Workers’ Union spokesman Mbengeni Mphatha said there will be no public transport disruptions.
MILLIONS STOLEN FROM ALEXKOR
CASH strapped parastatal Alexkor’s Northern Cape mine has lost between R600-million and R800-million to the theft of diamonds over the last year, Parliament’s public enterprises portfolio committee chair Mandla Msomi said on Tuesday. Msomi said the mine is in crisis, and that unless the government provides some financial support, it will be in danger of losing the mine as a state asset. He estimates that R500-million will be needed to fund exploration, while about R40-million is needed to increase security to curb the theft.
MURRAY & ROBERTS MAY UNBUNDLE
ENGINEERING and construction conglomerate Murray & Roberts has appointed merchant bankers Deutsche Morgan Grenfell to conduct a review of its concrete, cement and quarrying businesses with a view to unbundling them, the group announced on Tuesday. M&R said last month it is considering unbundling non-contracting interests in order to refocus the group on its core activity. Executive chairman Dave Brink said the group will not hold discussions with interested buyers until the review is completed, by the end of April.
OUDEKRAAL SOLD
TRHE liquidated Oudekraal hotel development on the slopes of Table Mountain was sold by public auction to an anonymous buyer for R29,5-million on Wednesday. The new owner will need to spend a further R8-million to complete the development. As expected, the auction, held in t,he Peninsula Hotel in Sea Point attracted a great deal of both foreign and domestic interest.
JOHNNIC DELAYS RESULTS YET AGAIN
DIVERSIFIED holding company Johnnies Industrial Corporation (Johnnic) postponed releasing its half-year results for the third time on Tuesday. The results, due on Thursday, will now be posted on Monday. Johnnic is still operating under a cautionary warning.
PROTEA’S INTERNATIONAL MARKETING DRIVE
PROTEA Hotels has joined up with Pestana Hotels and Resorts of Portugal to market its chain of hotels in Mozambique, the group announced on Tuesday. Pestana will spend R80-million refurbishing three of its own hotels in Mozambique.
HYUNDAI PLANT TO MAKE VOLVOS
THE Motor Company of Botswana opened its R250-million manufacturing plant in Gaborone on Tuesday, announcing it will produce Volvos as well as Hyundai models. The plant has the capacity to produce 26000 cars a year, and the investment is expected to build confidence in the public and motor industry sectors in Botswana.