JSE slips Friday as Gemfields and Texton set defensive tone

A defensive Friday on the JSE was shaped by a triple-digit impairment at Gemfields and a sharp vacancy deterioration at Texton, while Sappi's extended covenant relief underscored balance-sheet strain.

How the day unfolded

The session opened with a mixed Asian lead and a cautious local SENS tone after bearish results from AON and RTN. By midday the All Share was 0.36% lower as Brent's slide dragged the Energy sector down 1.42%, while Basic Materials and a firmer rand cushioned the downside; Financials lagged with Investec down 3.64%.

The close confirmed the negative tilt: the Top 40 fell 0.65% and the All Share 0.66%, with breadth deteriorating to 41 advancers against 109 decliners. Industrials (-1.62%) and Energy (-1.48%) led the decline, while Communication Services (+0.32%) was the only sector in the green. The rand was essentially flat at -0.22% against the dollar, so the move was stock- and sector-specific rather than currency-driven.

By the numbers

Breadth: 41 advances, 109 declines, 8 unchanged.

GML Gemfields guides USD 73.5m net loss on USD 125.2m Montepuez impairment

Gemfields expects a net loss after tax of USD 73.5 million for the six months to June 2026, more than triple the USD 20.5 million loss a year earlier, driven by a USD 125.2 million non-cash impairment at Montepuez Ruby Mining (Gemfields trading statement).

The impairment reflects a more conservative approach to forecasting grade recoveries, and the company also restated its FY2025 impairment upward by USD 30 million to USD 65 million. Headline earnings per share turned positive at USDc 0.6 only because the impairment is excluded.

The weighted average share count jumped roughly 40.7% to 1.72 billion, diluting per-share metrics.

TEX Texton audited results show vacancy spike, NAV erosion and dividend cut

Texton's audited FY26 results show distributable earnings down 11.2% to R65.5 million, with core vacancy jumping from 8.6% to 14.6% year on year and NAV per share falling 12.15% to 486.36 cents (Texton audited FY26 results).

The board cut the final dividend to 18.45 cents from 20.13 cents, while the headline HEPS surge to 9.20 cents from 0.61 cents is a base-effect artefact from the near-zero prior-year comparator rather than an operating recovery.

The filing provides no balance sheet, cash flow statement, debt maturity profile, LTV or covenant headroom, so the market cannot yet judge whether the dividend is sustainable at this level.

APF Accelerate sells KPMG Crescent for R385m as anchor tenant exit looms

Accelerate Property Fund is selling KPMG Crescent and its Parktown parkade to Rand Mutual Assurance for R385 million gross, just below the R393 million independent valuation (Accelerate KPMG Crescent disposal). Net proceeds after a R15 million capex commitment fall to R370 million and will go mainly to debt reduction.

The asset's roughly R100.8 million net operating income was inflated by a KPMG lease escalating 8% annually over 12 years, and KPMG has agreed to exit on 30 April 2027. The filing does not quantify the pro-forma impact on distributable earnings or NAV per share.

SAP Sappi extends leverage covenant relief to December 2027

Sappi has extended its leverage covenant suspension to June 2027 and agreed gradually tightening covenant levels with lenders through December 2027, covering both the international revolving credit facility and bank term debt (Sappi covenant relief extension).

The filing discloses no leverage ratios, net debt or EBITDA figures, so the scale of the underlying stress cannot be sized from this announcement. The extension signals the original testing window was insufficient, though the reason is not disclosed.

TTO Trustco shareholder demands meeting to replace entire board

Riskowitz Value Fund LP has invoked Section 189 of the Namibian Companies Act to demand a shareholders' meeting to consider appointing a new board of directors at Trustco Group Holdings (Trustco board removal demand).

Trustco's board says only that it is reviewing the demand's content and validity and will announce further in due course. The formal bid to oust the entire board compounds uncertainty for a company already under multiple cautionary announcements.

BTN Burstone launches South African funds management business

Burstone Group has announced a Category 2 transaction to launch a South African funds management business, signalling a strategic expansion beyond its existing property operations.

The move could diversify Burstone's revenue into fee-based funds management, but details on scale and economics are still to be disclosed.

CPR Copper 360 appoints new CEO and CFO and reshuffles board committees

Copper 360 has appointed a new Chief Executive Officer and Chief Financial Officer, alongside changes to executive responsibilities and board committee composition (Copper 360 CEO and CFO changes). A simultaneous CEO and CFO change is a significant governance event for a junior miner, and any strategic shift under new leadership will be closely watched.

Movers explained

Montauk Renewables (MKR) surged 20.2% to R46.95 with no SENS or macro catalyst, leaving the driver unclear. Southern Palladium (SDL) added 7.06% and thinly traded Wesizwe Platinum (WEZ) climbed 6.98% in sympathy with a 1.17% rise in platinum. City Lodge (CLH) gained 5.39% and Calgro M3 (CGR) rose 4.00% with no disclosed catalyst. On the downside, Santova (SNV) fell 8.86% in line with the Industrials sector, Blu Label (BLU) declined 5.65% despite the Communication Services index rising 0.32%, Thungela (TGA) shed 4.80% alongside Energy with flat Brent, Pan African Resources (PAN) fell 4.37% in Basic Materials with gold flat, and thinly traded Jubilee Metals (JBL) declined 4.17% with no disclosed catalyst.

Director dealings

Omnia disclosed multiple share scheme awards, including R26.1 million to CEO T Gobalsamy, while SM Mdluli sold R2.15 million on market. At Bidvest, NT Madisa received a R17.67 million long-term incentive award and sold R8.22 million on market, with GC McMahon and MJ Steyn also receiving awards and selling shares.

What we are watching

Next week brings Gemfields' interim results on 30 September, which will test cash and liquidity behind the Montepuez impairment, and Mondi's dividend payment date alongside scheduled dividend payments for BEL, BID, CSB, CFR, DSBP, IMP and PMV. Also ahead are Trustco's response to the board-removal demand, Sappi's next results to size covenant headroom, and any pro-forma earnings detail from Accelerate.