JSE Tuesday: AB InBev Leads as Resources Lag; Brikor Slumps

The JSE closed marginally positive on Tuesday, with the All Share edging up just 0.04% as a sharp divide emerged between sectors. Financials and industrials broadly outperformed, with the Banks index gaining 0.93% and the Financials index up 0.77%, while resources lagged, dragging the Resource 20 down 0.85%. Thungela Resources led the decliners with a 7.71% fall, and AB InBev was the top performer in the Beverages index, up 3.14% after its latest weekly share repurchase update. Brikor issued a stark earnings warning, contrasting sharply with coordinated insider buying at eMedia Holdings and an operational copper production ramp-up at Jubilee Metals.

BIK Brikor warns of deepening losses as earnings swing to significant deficit

Brikor released a trading statement on Tuesday indicating that both earnings per share and headline earnings per share will swing into significant losses for the year ended 28 February 2026. EPS is expected to deepen to a loss of between 1.10 and 1.30 cents, worsening from a 0.3 cents loss in the prior year, while HEPS is projected to swing from a 0.5 cents profit to a loss of between 1.0 and 1.2 cents. The figures are based on management's unaudited assessment and the full results are expected before 19 June 2026.

The severe operational deterioration contrasts sharply with the stock's recent strength near its 52-week high, suggesting the market may be pricing in the pending scheme of arrangement rather than underlying fundamentals. This disconnect between the share price and the earnings trajectory poses downside risk if the scheme faces delays or amendments ahead of implementation.

EMN Four eMedia executives collectively purchase R1.43 million in shares on-market

eMedia Holdings announced on Tuesday that its Financial Director and three subsidiary managing executives collectively purchased approximately R1.43 million worth of shares on the open market at roughly 200 cents per share. The purchases were executed on the same day across the group's finance, commercial, and content divisions, amplifying the conviction signal relative to a single director trade. The stock is currently trading marginally below the 199.99-cent purchase price, indicating it has not held the insider entry level.

Coordinated open-market purchases by key operational leaders, including the Financial Director, signal strong internal confidence in the group's prospects at current levels. The synchronized nature of the buying across finance and key operating divisions strongly amplifies the conviction signal and suggests the stock may present an attractive entry point for long-term investors watching for a technical reversal.

JBL Jubilee Metals restarts high-grade copper deliveries to Sable refinery targeting 100% feed increase by October

Jubilee Metals confirmed the recommencement of high-grade run-of-mine deliveries to its Sable refinery, targeting an increase to 10,000 tonnes per month by October 2026. The successful expansion of Pit 2 at the Molefe Mine projects quarterly ore deliveries rising from 12,000 tonnes to over 30,000 tonnes, validating the company's scalable, integrated mine-to-metals expansion strategy in Zambia. The operational ramp-up is a tangible step toward the group's strategic target of 25,000 tonnes per annum of copper production, providing investors with a concrete near-term catalyst.

The demanding 6:1 stripping ratio signals ongoing cost headwinds that could pressure margins as volumes scale, and investors should monitor whether the company hits the quarterly delivery milestones on schedule. A JORC-compliant resource report is targeted for the fourth quarter of 2026, introducing an external dependency as it remains subject to the timely receipt of assay results.

AXX Araxi reports 10.1% underlying earnings growth and 25% improvement in operating cash flow despite headline profit decline

Araxi's FY26 results reveal a sharp divergence between optical reporting and underlying cash generation, with reported HEPS contracting 18.2% largely due to the non-recurrence of last year's R42 million software licence fee. Once adjusted for this base effect and recent M&A restructuring costs, underlying HEPS expanded 10.1% and operating cash flow grew a robust 25% to R259.0 million. The active terminal base expanded 5.4% to 447,000 units and recurring terminal licence fees grew more than 31%, confirming structural momentum in the business.

The board maintained the total dividend at 12.00 cents per share, a sign of confidence in the group's cash generation capacity despite the headline profit decline. The strong underlying cash conversion and recurring revenue growth validate the operational turnaround, though the stock drifted lower on the day, possibly reflecting profit-taking after an exceptional pre-announcement rally tied to the earlier Pay@ acquisition disclosures.

DLT Sahara Capital Holdings acquires 23.68% beneficial interest in Delta Property Fund

Delta Property Fund has disclosed that Sahara Capital Holdings (Mauritius) Limited has acquired a significant 23.68% beneficial interest in the company's ordinary shares. This large block accumulation introduces a major new shareholder to the register at a time when the stock trades at a deep 0.10x price-to-book valuation, potentially indicating perceived value by the acquirer. The regulatory notification does not disclose the new shareholder's strategic intentions, leaving uncertainty regarding potential future corporate actions or board representation demands.

The emergence of a near-24% shareholder is a material change to Delta Property Fund's register that could influence future corporate actions or board dynamics. Ownership concentration at this level may also limit the influence of existing minority shareholders, and the stock's ultra-low valuation continues to reflect ongoing fundamental challenges in the property sector.

ANH AB InBev deploys €37 million in latest weekly share repurchases, cumulative programme reaches €1.35 billion

AB InBev repurchased an additional 537,216 shares for €37 million in the first week of June 2026 at an average price of €68.81, bringing its cumulative programme total to 22.4 million shares, equivalent to 1.11% of outstanding stock, for €1.35 billion since November 2025. The ongoing mechanical return of capital through buybacks provides persistent price support for AB InBev shares, and the stock's appearance as the top performer in the Beverages index, up 3.14% to 1330.45 cents, confirms the market views this capital action favourably.

The weekly updates are routine and expected under the programme announced on 30 October 2025, and the execution is managed by an independent financial intermediary. Investors holding AB InBev should note that the repurchase programme provides a structural bid underneath the stock, though the programme's ultimate size and completion timeline have not been disclosed in this or prior filings.

What we are watching

Investors should monitor for the full audited results from Brikor, expected before 19 June 2026, which will provide definitive clarity on the operational drivers behind the severe earnings deterioration. The Sasfin Holdings scheme of arrangement, filed with the Takeover Regulation Panel on Tuesday, will also be watched as it proceeds toward its long-stop date of 31 December 2026, providing a template for how remaining minority shareholders in delisting transactions are treated.