Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Info | Ad Choices  The rest of the muscle was provided by the gold outfits. All Rights Reserved. All JSE data is delayed by at least 15 minutes, SA shares rocketed 26% in just three months – the biggest jump in almost 20 years, Eskom may borrow R1bn through a JSE-listed Sukuk, eight years after first floating the idea, A large JSE-listed mall owner just collapsed - under a R80 billion debt burden, *Copyright © 2020 Business Insider Inc.All rights reserved.Registration on or use of this site constitutes acceptance of our. Terms & Conditions. “When there’s a bit more certainty many companies will reinstate dividends pretty close to the level that we saw pre-Covid,” Matthews says. With local bonds, “for the first time, we are questioning the creditworthiness of our sovereign”. Apart from retirees who are dependent on dividends for income, and those close to retirement, corporate executives, who receive shares as payment, will also be affected, says Kim Frost, partner and financial advisor at Bespoke Financial Services. “When it unwinds, it does so very fast,” he says. Armitage says the reams of rights issues show which companies are most under pressure, like Foschini, City Lodge and Sun International. People must stay invested in their portfolios despite companies not paying dividends.”. “Governments will probably struggle to push through austerity, prompting a shift towards financial repression in South Africa,” it adds. Raise capital for your business. Dalmeyer warns that the impact of coronavirus “will be extremely challenging for the South African economy, and the government has limited fiscal room to help support business and consumers”. “If a company is suspending its dividend for six months to a year and for a good reason, then that is fine. Right now the need for survival, including avoiding running into financial difficulty, trumps dividend pay-outs for many companies. Shellshocked South Africans face an extra hit from the coronavirus crisis after JSE-listed companies decided to halt more than R100 billion in dividends so far in 2020. DM/BM. As the JSE gets closer to the 20 th anniversary of listed ETFs, its total ETF market cap is R107.7-billion. “In South Africa, we expect that GDP will contract by 11% this year, which puts us at the bottom of the consensus range. “For valid reasons, of course, as the tech companies allowed us to survive the lockdown,” he says. Amazing: The JSE is now up for the year 2020 By Ruan Jooste • 12 August 2020 An exterior of the Johannesburg Stock Exchange (JSE) in Sandton, Johannesburg, South Africa, 09 October 2018. , which puts us at the bottom of the consensus range. Including slashing fees by 50% for all companies listed on the JSE AltX and BEE Board for the remainder of 2020. If we’re right on the depth of the downturn and that inflation will stay low, the Reserve Bank is likely to cut interest rates further.”. David Shapiro, deputy chairman at Sasfin Securities, says the spillover from abroad is only half the story, and it is mostly the US tech stocks that got us there. Investors should also be aware that, in some cases, the coronavirus crisis has led to changes in the relative risk profiles of various asset classes. Eight industrial companies, seven banks and financial services companies and five retailers put a hold on their dividends. RMB withheld its dividend due to its restructuring. “If you take out miners and tech, the local market is an absolute disaster,” says Shapiro. He says what is bound to happen as we move out of Covid-territory is that the tech stocks will continue their dominance, and the drive into gold as a safe-haven asset will disappear. “Amazon, for example, is looking into leasing more storage space to make up for the boom in e-commerce.”. deputy chairman at Sasfin Securities, says the spillover from abroad is only half the story, and it is mostly the US tech stocks that got us there. Analysis by Business Insider South Africa shows that at least 65 JSE-listed companies suspended dividends this year. CAPE TOWN – Group Five, a former giant in the South African construction industry, plans to delist from the JSE after 46 years, on June 12. Key calls for August, according to Capital Economics, is that. South Africa is likely to suffer particularly weak recoveries over the coming quarters, especially as officials have struggled to bring the virus under control. Powered and implemented by Interactive Data Managed Solutions. The JSE Cross Listed Index closed at 102.11 The JSE Financial Index advanced by 0.01 points ( 0.01 %) to close at 97.15. “After years of ridiculous shopping centre growth,” he says, the shift is moving to logistics and warehousing. Distell listed in the “Beverages sector” which constitutes 14% of the overall JSE market cap and translates to R14.27 trillion. Marius Pretorius, Old Mutual head of marketing for retail saving, says these retirees may need to reduce their monthly withdrawals from their funds to ensure that their retirement plans remain on track.