Trading Day – Capitec expects a sizable increase in earnings. 

Capitec expects a sizable increase in earnings per share (EPS) to around R40. 

Tiger Brands sold off as much as 8.5% yesterday following news of trace levels of asbestos in its Purity baby powder. 

Here is the biggest news of the day.

• Capitec expects a sizable increase in earnings. The company released a trading statement highlighting its expectations for its half-year results. Group earnings per share (EPS) is expected to grow roughly 18% to around R40. The company’s half-year results are due on 29 September.
• Tiger Brands sold off as much as 8.5% yesterday following news of trace levels of asbestos in its Purity baby powder. The company issued a recall for the product. It said that after consultation with the National Consumer Commission, the levels of asbestos found in the products did not meet their strict safety standards.
• Sanlam reports a slight decline in earnings. The company released its half-year results, showing net client cash flows contracted 2% to R37 billion while headline earnings per share (HEPS) decreased 7% to R1.80.
• The Foschini Group reports huge revenue growth. The company released a trading update for the first 23 weeks of its financial year, indicating total group retail turnover growth of 21.6%. Online retail turnover is normalizing, with slower growth of 5.1% compared to last year’s period. Online retail comprises 9.2% of all revenue versus 10.6% last year.
• Discovery’s share price fell by 10% yesterday despite releasing strong results. The selloff is attributed to the company’s decision not to pay ordinary dividends.
• Clientele’s company secretary resigns. Wilna van Zyl steps down as company secretary after 17 years of service. The resignation will take effect end of October, and she will be followed up by Eben Smit (LLB), the current Head of Group Legal.
• Canada’s central bank raised its interest rate by 0.75%. The Canadian dollar is at its weakest level in a year against the US dollar.