NATIONAL NEWS - Here’s what caught our attention on Monday:
Acsa heads to court
Airports Company South Africa is heading to court over a dispute with shareholders. Moneyweb is reporting that the parastatal alongside the Minister of Transport are seeking to overturn a 2017 ruling which required that Acsa buyout minority shareholders at ‘fair market value’.
According to Moneyweb, minority shareholders are alleging that Acsa became a developmental agency of the government and made irrational investment decisions which impacted them (the shareholders). Although shareholders have been trying to sell their shares back to Acsa for years, they have not reached agreement on a fair price.
Grit Reit results
Grit real estate investment trust is reporting a 25.97% increase in net property income growth to $32.31 million and a 35.58% increase in rental income growth to $43.55 billion for the year ended June 30, 2019. The company’s adjusted EPRA earnings amounted to $9.92 cents per share for the period.
Revenue increased to $42.7 million while the profit from operations amounted to $17.3 million. A final distribution per share of 6.95 US cents per share is being declared.
Accelerate Property Fund trading statement
Accelerate Property Fund is anticipating negative distributable income growth for the year ended March 31, 2019. In a trading statement issued on Monday, the company says it expects a 10% to 15% reduction in distribution, amounting to between 43.32 cents and 45.87 cents per share.
The company adds that the board of directors sees it prudent to retain an additional percentage of Accelerate’s distributable income for reinvestment in the company and its core assets, to ensure long-term sustainability and profitability. This is due to what it says was a tough year all round for South African-focused Reits.
October fuel prices increase
The price of fuel is due to increase in October due to the Saudi Aramco oil tanker attack earlier this month. The price for a litre of 95-octane gasoline will increase by 18 cents, while diesel and paraffin will rise by 25 cents each. According to energy minister Gwede Mantashe, the strong rand during the period was able to cushion the impact of the attack on fuel prices.
The new prices come into effect on 2 October.
Read: SA boosts petrol prices
Emerging market currencies are taking a knock as the trade war between the US and China heats up. On Friday, news emerged that US President Donald Trump is seeking new tactics against China, including delisting Chinese companies from US stock exchanges.
In the week ahead in South Africa, Absa PMI and new vehicle sales data for September are expected. On Monday, the rand was at R15.19 to the dollar at 8:15.