Lynn Bolin

The likelihood of a 50 basis-point cut in interest rates by the South African Reserve Bank (SARB) stands at about 60%, according to Lehman Brothers economist Tolga Ediz. Commenting in a recent research note, the London-based Ediz said that the choice facing the SARB’s monetary policy committee at its February meeting will not be an easy one.

Listed media group Moneyweb Holdings has agreed to sell 80% of its 19,62% stake in radio station Classic FM to empowerment group Huntrex for a cash consideration of R4-million, Moneyweb said on Wednesday. Moneyweb said the disposal will take effect from the earlier of February 15 or the payment of the first tranche of R2-million.

Unity Insurance — a new short-term insurance company owned 50,1% by Telesure Investments, the holding company of Auto & General, and 49,9% by a variety of black shareholders — has been launched in South Africa, the company said on Tuesday. Unity aims to bring black-empowered insurance products to the South African market.

BMW has announced that Wolfgang Stadler will succeed Ian Robertson as managing director of BMW South Africa on February 1 2005. As reported late last year, Robertson will be leaving South Africa to assume the post of chairperson and CEO of Rolls-Royce Motor Cars, in Goodwood in the United Kingdom.

The new pharmacy operations of listed health and beauty retailer New Clicks Holdings continue to show a loss four months into the company’s 2005 financial year, with the government’s new dispensing-fee regulations eating into margins. This is leading the company to focus on rolling out pharmacy dispensaries in larger Clicks stores.

Johannesburg- and London-listed financial services group Investec plans to raise R522,5-million via the issue of five million new preference shares at an issue price of R104,5-million, the company announced on Monday. The preference share offering opens on Monday and closes on Friday February 11.

Shareholders of Australian-listed grocery and liquor wholesaler Metcash Trading have approved resolutions that will facilitate the group’s plans to buy the 60% stake in Metcash held by South African-listed holding group Metoz, Metcash confirmed on Friday. Metoz was previously known as Metro Cash and Carry or Metcash.

A rush of investors keen to participate in the strong run of local equities has forced Old Mutual to close its top-performing general equity unit trust fund, the Old Mutual High Yield Opportunities Fund, to new investments with immediate effect. Old Mutual Unit Trusts announced its decision to close the fund on Friday.

The share price of Distell South Africa’s largest listed wine and spirits producer, has gained 7,4% or R1,80 to reach its previous all-time high on Wednesday on the back of its bullish trading update, issued late on Tuesday. At 4.30pm, Distell shares were quoted on the JSE Securities Exchange at R26, up from R24,20 at Tuesday’s close.

The government of the City of Cape Town has been given an unqualified audit report for the first time by Auditor General Shauket Fakie, for its financial year ended June 30 2004, Cape Town executive mayor Nomaindia Mfeketo announced on Wednesday. "It is with humility that I can announce a great achievement," Mfeketo said.

The share price of South African clothing retailer Edcon rose by 2% or R5,50 in early trade on Thursday after the group reiterated that it expects its headline earnings per share for the year to the end of March 2005 to be 60% higher than those of the previous year. Edcon also reported a 24% rise in sales and a 26% rise in gross profit for the 13 weeks to January 1.

South Africa’s opposition Democratic Alliance has called for Transnet CEO Maria Ramos to break her silence surrounding the sudden resignation of Spoornet CEO Dolly Mokgatle. Railway group Spoornet is a subsidiary of government-owned transport group Transnet.
<li><a class=’standardtextsmall’ href="http://www.mg.co.za/Content/l3.asp?cg=BreakingNews-Business&a=12&o=195046">Spoornet CEO quits</a>

The share price of listed general merchandise, food and alcohol retailer and wholesaler Massmart rose by 1,7% or 75 cents in early trade on Tuesday, supported by its favourable trading statement released late on Monday in an otherwise mixed market for retail stocks.

Property group Gilboa Properties plans to change its name to Absolute Holdings and transfer its listing from the main board of the JSE Securities Exchange (JSE) to the Alternative Exchange (AltX) in 2005, in line with its change in focus from a property-development company to tile wholesaling and retailing, as well as mining.

State-owned South African transport group Transnet has reported an interim pre-tax profit for the six months to the end of September of R774-million, resulting from a 5,3% rise in turnover to R22,4-billion, after posting a loss of R1,06-billion in the year-earlier period.

South Africa’s largest commercial banking group, Nedcor, has confirmed its previous earnings forecasts for the financial year to the end of December, saying on Thursday it expects its headline earnings per share (excluding translation gains or losses) to be between 6% and 19% lower than the 502 cents per share reported in 2003.

Listed retailer Edgars Consolidated Stores (Edcon) has reported an 88% rise in its headline earnings per share for the six months to the end of September 2004 to 968 cents, from 516 cents a year earlier. The group doubled its interim dividend while maintaining two times earnings cover, to 494 cents per share from 247 cents in 2003.

Friday November 5 marks the last day of trading of shares in Metro Cash & Carry (Metcash) as such on the JSE Securities Exchange (JSE), following the buyout of the company’s African and South African operations by a consortium of Metcash management, a black empowerment consortium and associates.

Food retailer Shoprite Holdings is expecting an "exciting" and much-improved second half of 2004 compared with the same period in 2003, with its turnover in the three months from July to September rising by 9,3% on a like-for-like basis, continuing the upward sales trend it experienced in the latter part of its financial year to the end of June 2004.