JSE Close: Resources and Telecoms Lead as Retail Lags; Foschini Tumbles

The JSE closed modestly positive on 11 May 2026, with the All Share gaining 0.47% and the Top 40 adding 0.59%, as resource and telecoms stocks outperformed while financial and consumer discretionary indices lagged. The Resource 20 climbed 1.97%, the FTSE/JSE Telecommunications sector surged 2.87%, and the Industrial Metals & Mining index rose 2.43%, while the FTSE/JSE Banks fell 0.89% and Retailers shed 3.66%. Vodacom rallied 4.51% on strong full-year results, Boxer Retail gained 7.72% following a robust trading profit performance, and Pick n Pay led the All Share with a 9.11% advance, contrasting sharply with The Foschini Group's 12.84% decline — the steepest single-session loss for the apparel retailer in recent memory.

VOD Vodacom delivers 22.9% HEPS growth and 18.5% dividend hike

Vodacom Group released reviewed FY2026 annual results showing headline earnings per share surged 22.9% to 1,053 cents, supported by a 10.1% rise in group revenue and a 23.2% increase in operating profit to R44.1 billion. Return on capital employed expanded by 4.0 percentage points to 27.5%, while free cash flow climbed 20.1% to R21.8 billion, confirming strong operational execution across the group.

The board declared a total dividend of 735 cents per share, representing an 18.5% increase on the prior year and maintaining the policy of distributing at least 75% of headline earnings. The payout is comfortably covered by the group's cash generation, even as capital expenditure rose 16.5% to R23.6 billion and net debt to EBITDA edged up from 0.9x to 1.0x, reflecting higher spending on network expansion.

Vodacom's shares closed 4.51% higher at R152.75, outpacing the broader telecommunications index, as investors responded positively to the breadth of the growth delivery. The elevated dividend reinforces the stock's income-generating credentials for SA retail investors, though the Kenyan court process surrounding the additional 20% Safaricom stake acquisition remains an execution risk to monitor.

BOX Boxer posts 17.3% trading profit growth despite IPO share dilution

Boxer Retail reported a 17.3% pro forma increase in trading profit to R2.64 billion for the 52 weeks ended 1 March 2026, with trading margins expanding from 5.4% to 5.7% despite a challenging consumer spending environment. Absolute headline earnings grew 13.2% to R1.60 billion, supporting a total dividend of 140.67 cents per share at a 40% payout ratio, while the balance sheet shifted from net debt of R180 million to net cash of R709 million — a meaningful turnaround in financial flexibility.

The stock gained 7.72% to R85.64 as the market responded to the margin expansion and cash generation, which the company achieved through operational leverage in its expanding store estate. The 26.0% return on invested capital underscores the quality of the underlying retail model, though investors should note that headline earnings per share declined 15.0% to 351.67 cents due to a 33.2% increase in shares outstanding from the IPO.

Management flagged early FY27 turnover growth decelerating slightly below H2 FY26 levels alongside continued internal selling price deflation, introducing a degree of execution risk ahead of the FY27 guidance update. At a 25.8x forward P/E, the market is pricing in sustained execution, leaving limited room for near-term missteps.

RDF Redefine Properties swings to 85.8% HEPS growth, raises guidance

Redefine Properties released unaudited interim results for the six months ended 28 February 2026, reporting an 85.8% surge in headline earnings per share to 34.24 cents and declaring an interim dividend of 21.83 cents per share, up 6.9% year-on-year. Revenue grew 3.7% to R5.6 billion while the group maintained a net operating profit margin of 77.2%, and SA REIT NAV per share increased 4.3% to 815.09 cents, reflecting the underlying quality of the property portfolio.

The loan-to-value ratio improved to 40.3%, supported by property assets of R101.2 billion and R5.4 billion in undrawn facilities and cash, indicating that the balance sheet has adequate headroom. Based on the strong interim performance, management raised full-year distributable income per share growth guidance to between 6.0% and 7.0%.

The stock did not participate in the broad market rally, trading 1.59% lower despite the positive results, which may reflect market caution around the macroeconomic assumptions embedded in the guidance. The outlook is sensitive to prime lending rates at 10.25% and specific EUR/ZAR and PLN/ZAR exchange rate assumptions, highlighting the external risk factors that SA retail investors in the property sector should monitor as interest rate cycles evolve.

ENX enX Group warns of 79% to 94% HEPS decline as core swings to loss

enX Group's trading statement projects total headline earnings per share to plummet by 79% to 94% to a range of just 3c to 10c, with continuing operations swinging to a basic loss of 2c to 4c per share from a 3c profit in the prior period. Revenue in continuing operations is expected to drop approximately 37%, dragged down by the absence of large data centre contracts and softer demand for generator sales — a stark deterioration in the remaining Power segment's performance.

The company did complete its Chemicals disposal on 30 April 2026, generating a cash inflow of R294.7 million that strengthens the balance sheet following the formal restatement of the Lubricants and Chemicals segments as discontinued operations under IFRS 5. However, the disposal proceeds do not offset the structural collapse in the core business, and a further R10 million impairment was recorded against the Chemicals segment relative to its transaction price.

With the remaining core operations now loss-making and no near-term dividend support, enX investors face a wait-and-see period before the new operating model stabilises. The sharp divergence between total operations basic EPS improvement and the collapse in continuing operations highlights the distorting effect of the IFRS 5 restructuring adjustments, underscoring the need for SA retail investors to await the audited results before forming a view on the sustainable earnings trajectory.

CPR Copper 360 suspends lower-grade processing to fund high-grade pivot

Copper 360 is suspending lower-grade processing operations and initiating labour consultations as it redirects available capital toward a four-to-five month high-grade development plan at its Rietberg mine. The strategic pivot signals severe cash constraints under the current operating model, as the company attempts to improve the economics of production by focusing on higher-grade in-situ ore rather than the broader processing throughput that previously sustained revenue.

The MFP1 plant remains only 80% complete, delaying the cash-generative capacity that was expected from the facility's full commissioning. The company retains a portfolio of 12 previously operating mines and approximately 60 identified copper prospects, but these long-term assets generate no near-term revenue while capital is diverted to the underground development window.

Copper 360's equity already trades 70.65% below its 52-week high, and the operational restructuring introduces elevated execution and liquidity risk during the transition. SA retail investors holding junior mining stocks in this space should note that capital constraints can force difficult trade-offs between near-term survival and long-term asset development, particularly in a commodity price environment that offers limited margin for error.

ISA ISA Holdings terminates buyout and delisting negotiations

ISA Holdings has withdrawn its cautionary announcement after terminating engagements with an unnamed offeror regarding a potential buyout and delisting through a Scheme of Arrangement, formally ending a process that began in November 2025. The collapse of the M&A takeout catalyst removes the speculative premium that may have supported the share price during the negotiation period, forcing a return to standalone valuation metrics.

The stock must now be assessed on its own merits, where a forward price-to-earnings multiple of 39.9x presents a meaningful headwind for investors who may have bid up the price on M&A speculation. The 11.86% trailing dividend yield remains the primary income case for existing SA retail holders, but this metric does not resolve the valuation concern embedded in the demanding earnings multiple.

The termination filing establishes the end of negotiations but does not disclose the reasons for the breakdown or any financial implications of the terminated transaction, leaving the market without clarity on what caused the offeror to withdraw. For investors who accumulated on M&A hopes, the return to fundamental valuation at the current multiple warrants a reassessment of the risk-reward profile.

NPN Prosus sells 5% Delivery Hero stake for €335 million at 22% VWAP premium

Prosus, the international consumer internet arm of Naspers, has sold a 5% stake in Delivery Hero to Aspex Management for approximately €335 million, representing a 22% premium to the 30-day volume-weighted average price and a 10% premium to the closing price. The transaction executed 15.18 million shares at €22.00 per share, securing a favourable pricing outcome for a mandated disposal.

The sale advances the group's mandatory divestment commitments to the European Commission, which were triggered following the Just Eat Takeaway.com acquisition and require Prosus to reduce its exposure to certain assets over time. This is the second significant Delivery Hero stake reduction following a 4.5% sale to Uber in April 2026, confirming a structured unwinding programme rather than a strategic exit from the asset class.

At €335 million, the gross proceeds represent a modest liquidity event against Naspers' R679.8 billion market capitalisation, and the stock is down 3.19% on the day — likely reflecting that the market had already anticipated this required regulatory step. SA retail investors holding Naspers or Prosus should note that the disposal clears a compliance overhang but does not materially shift the underlying valuation debate anchored to the group's Tencent holding.

CPP Collins Property Group projects 15% to 20% DPS growth for FY2026

Collins Property Group released a trading statement projecting a 15% to 20% increase in aggregate distribution per share to between 115 and 120 cents for the 2026 financial year, confirming strong underlying cash return capacity and supporting the company's attractive 9.1% dividend yield. Management's adoption of DPS as the primary performance metric provides clear visibility into the distribution trajectory, reinforcing the income-generating appeal of the property counter for yield-focused SA retail investors.

However, the projected distributions include a return of capital rather than representing solely generated earnings, and the trading statement figures have not yet been reviewed by external auditors. The trailing P/E multiple exceeds 220x, and the stock is trading near its 52-week high, which may limit the upside surprise value of the update when the audited results are published.

The guidance reinforces Collins Property's relevance as a high-yielding property option within the JSE ecosystem, but income-focused investors should track the audited results carefully to assess the sustainability of the payout and the proportion that is truly income rather than capital return. The composition of distributions matters for those relying on the income stream as a primary return driver.

What we are watching

Tomorrow brings the Octodec Investments interim results webcast on 12 May 2026, and the market will continue to track progress on Prosus's ongoing European Commission divestiture programme for Delivery Hero, while AttBid's mandatory offer for RMB Holdings is scheduled to close on 29 May 2026.