JSE Tuesday: Resources Weigh as NEPI, Absa and BHP Deliver Results

The JSE retreated on Tuesday as resource stocks led the market lower, with the Resource 20 falling 2.1% and the FTSE/JSE Precious Metals & Mining index dropping 2.4%, pulling the All Share down 1.2%. Energy was the outlier, with the Oil, Gas and Coal and Energy sub-indices each gaining around 1.5%, while the broader Industrials and Financials indices lost roughly 0.8%. Among individual movers, ISA Holdings climbed 5.3% and Thungela Resources rose 5.2% to the top of the leaderboard, while Lesaka Technologies fell 7.1% and Impala Platinum shed 5.5% in a session dominated by PGM weakness and broad risk-off positioning.

NRP DEPS Guidance Raised to 3.5–4%, S&P Upgrades to BBB+

NEPI Rockcastle reported H1 2026 DEPS of 32.14 euro cents, up 3.5% year-on-year, running ahead of the prior ~3% full-year growth target and prompting the board to raise full-year guidance to 3.5–4% growth. The beat was confirmed by a negative CAR-20 return of approximately −3.6% in the 20 trading days ahead of the print, meaning the market had not already priced the guidance raise. S&P simultaneously upgraded the group to BBB+ stable in July 2026, joining Fitch at that level and reinforcing investment-grade credibility as the cross-border expansion into Spain advances toward its September close. The renewable energy segment contributed €5.7 million, up 38% on H1 2025, as new photovoltaic capacity came on stream — a growing income line that diversified the portfolio mix. The LTV rose to 33.1% from 32.8%, leaving 1.9 percentage points of headroom to the 35% strategic cap, and the market will look for audited annual accounts to confirm the higher DEPS range is cash-backed rather than paper-driven.

ABG HEPS +7.9% and 850c Dividend, ROE Hits 2026 Target a Year Early

Absa Group interim results and dividend delivered HEPS of 1,545.4 cents for H1 2026, up 7.9% and landing at the upper end of the mid- to high-single-digit growth range guided in June, with ROE of 15.0% already matching the full-year 2026 target — a year ahead of the internal schedule. The board declared a dividend of 850 cents per share, up 8.3% on the prior period, supported by a CET1 ratio of 12.8% that sits above the top of the 11.0–12.5% Board target range, giving genuine capital backing to the payout. The Stage 3 credit impairment ratio improved to 5.30% from 5.90%, consistent with the better credit loss guidance provided and reflecting a more stable loan book. Net interest margin, however, compressed to 4.46% from 4.58%, flagging structural rate headwinds that management had already pre-warned about, and the cost-to-income ratio worsened to 53.4% from 53.2%, delivering the slight negative JAWS the bank itself had telegraphed. The full interim report, with a CIB segment breakdown between Investment Banking and Transactional Banking, will be the document the market uses to assess whether the stronger divisions are fully offsetting the margin pressure in Africa Regions.

BHG Headline EPS +31%, Final Dividend Lifted 65% to 99 US cents

BHP FY 2026 results and dividend announcement reported FY 2026 headline EPS of 239.1 US cents, up 31% from 182.4 US cents in the prior year, on revenue of US$58,760 million, a 15% increase, and the final dividend was raised 65% to 99 US cents per share, fully franked — a payout that outran headline EPS growth and signals strong capital-return confidence from the board. The share had not meaningfully drifted in the 20 days ahead of the announcement, consistent with results that were genuinely ahead of expectations. However, impairments of US$2,405 million — roughly 15 times the prior year's US$154 million charge — saw basic EPS grow only 9% to 193.6 US cents, creating a material quality gap between headline and underlying earnings that the short-form SENS announcement does not resolve. The filing is accompanied by the full annual report and SEC Form 20-F, and SA investors holding BHP via the JSE will need the full audited accounts and cash flow statement to verify that the expanded dividend payout is funded from operating cash flow rather than one-off adjustments.

SKA 61.5m Zinc Intersection at Up to 68% Zn from Surface at Kabwe

Shuka Minerals reported that drilling hole KBDD10 at Kabwe returned 61.5 metres of near-surface zinc mineralisation averaging 3.96% Zn with a standout peak reading of 68% Zn, described by management as materially larger than first modelled, with the new ore body encountered at surface and supporting potential early-stage exploitation optionality. CEO Richard Lloyd noted that 68% Zn in-situ ore is unlikely to require extensive metallurgical upgrading, easing the route to a saleable product. The readings are XRF-based and pending JORC/NI 43-101 laboratory verification before any resource statement can be made credible, and only two of the three planned exploratory holes have so far been completed. The context for the announcement is important: the share had already run up 21.1% in the 20 trading days before this disclosure, and two prior August drilling updates had flagged new mineralisation in the same area — meaning much of the positive read may already have been priced in before Tuesday's announcement. Investors will be watching the third exploratory hole KBDD11 and the pending laboratory assays to determine whether the new ore body has sufficient grade and scale to support a revised resource estimate.

What we are watching

Investors will watch for NEPI Rockcastle's audited annual accounts and the September Spanish acquisition close to assess whether the higher DEPS range is fully cash-backed, while BHP's full FY2026 annual report and Absa's complete interim report are expected to address the cash flow and segmental detail not contained in the short-form SENS filings published Tuesday.