JSE slips as rand reversal and Basic Materials drag offset energy strength

A morning built on rand strength unravelled into the close as the currency weakened and resources dragged the JSE lower.

How the day unfolded

The session opened with the rand firmer against the dollar, lifting SA Inc. names, while iOCO results and Sanlam-Santam errata set the early agenda. By midday the Top 40 traded up 0.33% and the ALSI up 0.27%, with energy the clear leader as Brent held near $106. Ex-dividend adjustments in Datatec, Growthpoint and Fortress B distorted technology and property prints.

Into the close the rand weakened 0.55% to R16.64 and Basic Materials tumbled, dragging the Top 40 down 0.85% to 100,698 and the ALSI down 0.82% to 108,515. Precious Metals & Mining, Basic Materials, Food Producers and Retailers were the laggards, while Energy, Personal Goods and Chemicals held up. Breadth deteriorated to 61 advancers against 88 decliners.

By the numbers

Breadth: 61 advances, 88 declines, 8 unchanged.

VUN Vunani guides half-year HEPS up 52% to 72%

Vunani trading statement expects headline earnings per share of 14.4 to 16.3 cents for the six months to 31 August 2026, a 52% to 72% increase on the 9.5 cents reported a year ago. Basic EPS is guided 79% to 99% higher at 17.0 to 18.9 cents.

The wide gap between basic and headline EPS signals that once-off items are doing part of the work, and the filing provides no cash-flow or segment detail to test the quality of the uplift. The figures are unaudited.

Results are due on or about 21 October, which is where the market will see whether the earnings are cash-backed and what drove the EPS-HEPS spread.

TMT Shareholders approve Generation Education disposal with 98.06% support

Trematon shareholders voted through the Generation Education Group disposal at a general meeting on 14 October with 98.06% support.

The notice is procedural and does not restate the consideration, the cash/scrip mix, the use of proceeds, or the residual conditions precedent. The closing announcement is the next checkpoint to confirm the transaction has completed and on what terms.

SLM Sanlam corrects Santam beneficial shareholding to 61.9%

Sanlam corrected its effective shareholding in the Santam scheme offer from 62.7% to a beneficial 61.9%, adding 935,587 Santam shares to the scheme pool. The R505 per scheme share consideration and all other terms remain unchanged, with Sanlam Life furnishing an updated guarantee. The scheme circular will show the pro-forma effects and the independent expert's fairness opinion for the corrected shareholding.

APO Suspended aReit Prop flags possible delisting as audit delay persists

aReit Prop suspension update confirms the company remains non-compliant with JSE Listings Requirements, the auditor is still under IRBA review, and the board is now openly considering a delisting after the loss of REIT status. Operational businesses continue without material change. Lifting the suspension requires publishing three years of audited financial statements and three interim periods, none of which has a confirmed date.

Movers explained

Dipula Properties jumped 9.22% with no disclosed catalyst even as the Real Estate sector index fell 0.88%. Orion Minerals and Nutun, both thinly traded, rose 7.69% and 5.75% respectively with no SENS announcements; Optasia and Purple Group also gained without identifiable drivers. On the downside, Datatec fell 39.91% on its ex-dividend date with a R29 mechanical adjustment, while AVI dropped 9.30% on a R3 ex-dividend adjustment that far exceeded the dividend, pointing to additional selling pressure. ArcelorMittal South Africa and ASP Isotopes declined with the weaker Basic Materials complex, and Calgro M3 fell 7.22% with no disclosed catalyst.

Director dealings

Bid Corporation awarded share scheme shares worth R29.7m to D E Cleasby and R63.3m to B L Berson on 12 October. Exemplar REITail's John and Jason McCormick made a series of indirect disposals totalling over R1.2m between 8 and 13 October.

What we are watching

Tomorrow brings Hammerson's R2.1027 dividend payment and South32's AGM and R0.8661 dividend, while the market watches whether the weaker rand and the Basic Materials slide extend. Vunani's 21 October results and Trematon's closing announcement are the next company-specific checkpoints, with Sanlam's scheme circular and aReit Prop's next quarterly update still outstanding.