Hits & Misses

SA ducks second recession; new-vehicle sales continue downhill

SA averted a second recession in as many years after economic growth rebounded in the second quarter. The economy grew an annualised 3.1% in the three months to end June, compared with a revised 3.1% contraction in the first quarter, Stats SA said. It expanded 0.9% from a year earlier.

ASPEN Pharmacare surged the most in more than 19 years after it said it had reduced its debt and delivered strong cash flows in the second half. The rally follows months of share declines as Aspen extended a deadline to close the sale of its infant-formula business, said talks to sell a European business had ended and offered to pay the UK’s National Health Service £8m (R146m) to settle claims.

THE rand broke through the R15/$ handle for the first time in almost a month on Wednesday, lifted by positive local economic news as well as positive developments related to protests in Hong Kong. NEW-vehicle sales maintained their depressingly familiar downward path in August. Demand for cars and commercial vehicles fell 5.1% compared with a year earlier, from 47,977 to 44,566. Cars, as so often this year, underperformed the overall market, retreating 7.6%, from 31,456 to 29,075.

MANUFACTURING activity fell more than expected in August, returning to contractionary territory as economic activity remained constrained. The seasonally adjusted Absa manufacturing sector purchasing managers’ index declined to 45.7 index points after having jumped to a more than three-year high of 52.1 in July.

THE SABC appears to be fighting a losing battle in its bid to tackle its dire financial situation, with the public broadcaster posting a R192.3m loss in the first quarter of the 2019/2020 financial year.