JSE slides as resources drag; Alexander Forbes buyback leads company news

The JSE failed to hold a risk-on open and slid into the close, with resources the main casualty. The standout company news was Alexander Forbes' proposed specific repurchase of its shares.

How the day unfolded

The session opened with a global risk-on tone and a stronger rand, but the JSE failed to hold early gains. By midday the Top 40 was flat and breadth had narrowed, with resources and small caps leading while financials and industrials lagged.

The afternoon leg deteriorated sharply. The Top 40 closed down 1.23% and the All Share down 1.01%, with Basic Materials (-2.36%) and Energy (-2.72%) the heaviest drags. Resource 20 fell 2.52%, while FTSE/JSE Industrials rose 1.40%, Construction & Materials added 2.33%, and Industrial Transportation gained 2.26%.

The rand strengthened 0.45% to 16.3034/USD and Brent slipped 0.68% to 104.11, working against USD earners and energy names. Breadth ended at 75 advances versus 81 declines, confirming the negative resolution was broad.

By the numbers

Breadth: 75 advances, 81 declines, 13 unchanged.

AFH Alexander Forbes to repurchase 28.69% of its shares at R6.75 in R2.5bn deal

Alexander Forbes announced a proposed specific repurchase of 372,773,547 shares from New Veld at R6.75 per share, a 3.4% discount to the 30-business day VWAP as at 16 September. The roughly R2.5bn consideration will be funded through available cash and external debt; a R2.1bn bridge facility has been arranged but may be unused or only briefly used before long-term replacement funding.

The shares will be cancelled, mechanically lifting per-share metrics. ARC AF Holdings has given an irrevocable undertaking to vote 44.76% in favour, and if its separate purchase of New Veld's remaining 5.7% stake completes, ARC AF Holdings would hold 77.94% of Alexforbes.

The structure carries costs: R145m pre-tax annual finance charges on the long-term funding, and a R540m cash drawdown reduces interest receivable at roughly 7.5%. Control concentration in a single holder and a materially thinner free float are the key offsets.

The circular is expected to provide the quantified EPS/NAV accretion and the long-term funding replacement terms.

INL Investec guides 1H2027 EPS 3-7% ahead, SA strong but UK lags

Investec pre-close trading update guides adjusted EPS of 41.7p-43.3p, 3-7% ahead of 1H2026's 40.5p, and HEPS 4-8% ahead. Southern African adjusted operating profit is guided up to 6% ahead in Rands (14% in pounds), with SA ROE near the upper end of the 18-19% guided range.

The UK business is guided 2-6% behind the prior period, with UK ROTE at 12.3-12.7% near the lower end of its range. Group ROE of 13.1-13.5% sits in the lower half of the 13-14% target. Core loans grew 10.3% annualised to £37.0bn and SA Wealth FUM rose 13.8% to £30.7bn. The 19 November interim results will test whether the UK deterioration stabilises.

REM Remgro HEPS up 42.2% to R20.03, dividend hiked 73% plus 550c special

Remgro's audited FY2026 HEPS rose 42.2% to R20.03, landing within the R19.30-R20.71 guided range. Ordinary dividend per share jumped 73% to 595 cents, and a 550 cent special dividend was declared subject to SARB approval.

Total EPS collapsed 56.5% to R2.59 on Remgro's R10,042m share of Mediclinic's Switzerland impairments. The HEPS growth includes R1,023m of once-off items; adjusted growth was about 29%. Adjusted free cash flow conversion per share rose 28.6% to R8.91, with ordinary dividends received up 23.8% to R4,558m. The SARB decision and full AFS will settle whether the payout is durable.

RTN Rex Trueform warns EPS to fall 53.4% and HEPS 48.7%

Rex Trueform trading statement expects FY2026 EPS of 59.2 cents, down 53.4%, and HEPS of 66.1 cents, down 48.7%. Both breaches exceed the 20% JSE threshold but the filing gives no range, no cash or balance-sheet detail, and no explanation for the 6.9-cent gap between HEPS and EPS.

The figures are unreviewed and unaudited. Audited results are expected on or about 23 September 2026, where the market will see whether the decline is cash-backed or driven by once-off items.

AON African & Overseas Enterprises Limited guides EPS down 72.4% and HEPS down 67.7%

African & Overseas Enterprises trading statement guides FY2026 EPS at 29.3 cents, down 72.4% from 106.4 cents, and HEPS at 35.6 cents, down 67.7% from 110.0 cents. The filing offers no explanation for the collapse or the divergence between the two measures, and no range around the point estimates.

The company remains profitable on both measures. The full-year results on 23 September are where the market will look for the cause of the earnings decline and any cash-flow or balance-sheet damage.

CHP Choppies profit halves to BWP 74m, final dividend scrapped

Choppies' audited FY2026 profit fell 51% to BWP 74m from BWP 151m, with HEPS down 56.4%. Like-for-like store sales declined 1.2%, so the 7.9% retail growth came entirely from 27 new stores still maturing. The effective tax rate climbed to 43.5% from 30.7%.

The board omitted the final dividend, citing the need to preserve liquidity for core operations. Every key line landed inside the sharply lowered guidance issued on 14 September. The next trading update will test whether like-for-like sales turn positive and the new stores start contributing profit.

CKS Crookes sells loss-making Mozambique macadamia units to lender for US$2

Crookes Brothers is selling its Mozambique macadamia operations, Murrimo Macadamia Limitada and Murrimo Farming Limitada, to lender AgDevCo for US$2.00. The disposal extinguishes the US$5m term loan and removes a business that lost R300.8m in FY2026.

Covenant breaches had given AgDevCo enforcement rights over the shares, and no third-party buyer emerged. AgDevCo will fund up to $600,000 of pre-effective-date operating or wind-down costs. The cautionary is withdrawn, but the disposal still requires Mozambican regulatory approvals and must close by 31 December 2026. The next results will show whether the core business can sustain itself without the Mozambique losses.

NRP NEPI Rockcastle sells Baltic asset at 13% premium to NAV, exits region

NEPI Rockcastle has agreed to sell Ozas Shopping and Entertainment Centre in Vilnius for €200m, generating estimated net proceeds of €179m, a 13% premium to IFRS net asset value. The disposal completes the group's exit from the Baltic region. Completion is expected in Q4 2026 and the use of proceeds has not been stated.

Movers explained

SDO surged 22.86% with no disclosed catalyst, OPA added 11.03% and BAT gained 8.59% also without a clear driver. BRN rose 8.90% with the mildly positive Consumer Defensive sector, while AFH climbed 8.50% after Alexander Forbes repurchase announcement. On the downside, RCL fell 10.96% with no SENS headline or sector catalyst, ADR dropped 7.50% despite Industrials posting the best sector gain at +1.40%, and AXX lost 7.01% with no corporate announcement. ISO (-5.96%) and AFT (-4.24%) tracked the weak Basic Materials sector.

Director dealings

Wilson Bayly Holmes-Ovcon's WP Neff indirectly acquired shares worth R1,992,611.46 on 15 September 2026.

What we are watching

Monday brings ex-dividend dates for Absa and Bid, with BLU and CARTBL also paying. The divergence between Resources 10 and Basic Materials despite mixed precious metals is worth watching, as is the SA 10-year yield at 8.83% and USD/ZAR at 16.30 for any re-rating of SA Inc versus rand-hedge sectors. Tencent's 1.64% decline in Hong Kong leaves the Naspers/Prosus complex sensitive to APAC tech sentiment, while Burstone's pre-close update on 28 September and CMH's 16 October EGM are also on the calendar.