JSE rallies as rand weakens; Mondi tumbles 9% on Q3 update

A risk-off open gave way to a broad rally as a weaker rand and firmer precious metals lifted resources, while Mondi's Q3 update was the day's sharpest single-name move.

How the day unfolded

The session opened defensively after a VIX spike and a sharp Nikkei tumble, but the JSE held firm as a weaker rand cushioned USD-earning miners. By midday the All Share was up 0.85%, with defensives leading and Mondi's Q3 update the main single-name drag.

The close extended gains: the Top 40 finished 1.68% higher at 102,393 and the All Share added 1.53% to 110,172 on 106 advancers against 45 decliners. Consumer Staples (+1.98%), Basic Materials (+1.90%) and Resource 20 (+2.08%) led, while Energy (-1.18%) and General Industrials (-1.56%) lagged. The rand weakened 0.29% to R16.53/USD, with gold up 1.21% and palladium up 3.12%.

By the numbers

Breadth: 106 advances, 45 declines, 11 unchanged.

MNP Mondi tumbles 9% as Q3 update flags input-cost pressure and maintenance shuts

Underlying EBITDA rose to €196m from €167m in Q2, but the improvement was flattered by a swing in forestry fair value from a €43m loss to nil. Excluding that item, underlying EBITDA fell sequentially, mainly on planned maintenance shuts.

Higher energy costs and rising wood prices in Central and Eastern Europe pressured margins, while Corrugated Solutions faced competitive pressure and Uncoated Fine Paper saw seasonally weaker demand.

Mondi announced further paper price increases, with benefits expected from late 2026 into 2027, and expects another nil forestry fair value gain in Q4 if current prices hold.

KST PSG Financial Services lifts dividend 10% but shares fall 4.5% on mixed interim results

Recurring headline earnings per share rose 5% to 60.9c and the interim dividend was lifted 10% to 22c, with assets under management up 15% to R594.1bn. Excluding performance fees, recurring HEPS grew 11% to 59.8c.

The half was two-speed: PSG Wealth grew divisional earnings 14%, but PSG Insure fell 16% on lower investment income and Western Cape storm claims, and PSG Asset Management slipped 5% as performance fees collapsed from 7.3% to 1.9% of headline earnings.

FBR Famous Brands guides EPS down 13%–33% on R40.9m Botswana goodwill impairment

Famous Brands guided basic EPS to between 157c and 205c, down 13% to 33%, mainly due to a R40.9m goodwill impairment on its Botswana Retail Group after cutting its holding from 51% to 30%.

Excluding that impairment, EPS would be 199c to 247c, and HEPS is guided at 205c to 252c, flat to down. Revenue remained resilient, but elevated fuel prices and higher interest rates pressured profitability. Full results are due on 21 October.

EQU Equites lifts HEPS 67% and reaffirms full-year distribution guidance as UK exit completes

Equites lifted headline earnings per share 67.2% to 88.9c and distributable earnings 10.5% to R630.1m, with the interim distribution raised 5.1% to 72.57cps. Full-year distribution guidance of 147.7–150.5cps was reaffirmed.

The UK exit is substantially complete, and the balance sheet strengthened: LTV improved to 28.1% from 35.1%, with R2.9bn of cash and undrawn facilities. Revenue fell 10.1% as UK assets left the portfolio, the expected cost of the restructuring.

ISO ASP Isotopes signs binding 80/20 HALEU joint venture framework with Necsa, but no deal value disclosed

Quantum Leap Energy and Necsa signed a binding Heads of Agreement to develop HALEU facilities at Pelindaba, with QLE holding about 80% and Necsa about 20%. TerraPower offtake is secured, and ministerial approval for specified nuclear activities was received in July 2026.

However, the filing discloses no deal value, funding plan, construction timetable, or offtake terms, so the market cannot yet size the opportunity.

THA Tharisa signs Valterra Platinum for 50% of PGM offtake from 2027 and expands chrome recovery collaboration

Tharisa signed a binding multi-year agreement for Valterra Platinum to purchase 50% of Tharisa Mine PGM concentrate from 1 January 2027, replacing Sibanye-Stillwater while Northam Platinum keeps the other half. The parties will also collaborate on fine chrome recovery using Tharisa's Vulcan X technology, still in pilot testing. The financial impact is unquantified.

TLM TeleMasters audited results confirm EPS up 403% but still short of original 700% guidance

TeleMasters' audited FY2026 results confirmed EPS up 403% to 4.68c and HEPS up 334% to 4.69c, matching the 6 October trading statement that already disclosed the miss against the original more than 700% guidance. A dividend of 0.3cps was declared from retained earnings. The audited print adds no fresh information.

Movers explained

Gainers were led by thinly traded 4Sight Holdings Limited (4SI +4.41%) with no disclosed catalyst, while We Buy Cars Holdings Limited (WBC +4.23%) tracked the Consumer Discretionary sector's 1.82% gain. Optasia Limited (OPA +3.82%) had no disclosed catalyst, Orion Minerals Limited (ORN +3.57%) rose on rand weakness and firmer precious metals but is thinly traded, and Valterra Platinum Limited (VAL +3.53%) benefited from the same macro tailwind. On the downside, Mondi plc (MNP -9.07%) fell after its Q3 update, Dipula Properties Limited (DIB -7.65%) and Montauk Renewables, Inc. (MKR -7.06%) had no disclosed catalysts, PSG Financial Services Limited (KST -4.47%) slipped after interim results, and Famous Brands Limited (FBR -4.17%) declined on its trading statement.

Director dealings

iOCO director Ashona Kooblall received a share scheme award valued at R4,704,000, and Shoprite's Neil Schreuder made an indirect disposal of R3,960,000. Four Attacq directors exercised options at R0 on 14 October.

What we are watching

Mondi's Q3 update, Brent's direction, and the rand's path are the next variables. Famous Brands' full results on 21 October will test the resilient-revenue claim.