JSE lower as Sappi's 13.66% slump meets resource strength

Sappi's post-results slump was the day's defining event, with resource strength cushioning but not offsetting a broad risk-off tone.

How the day unfolded

The session opened under global risk-off pressure after an overnight fall in the S&P 500 and a sharp rise in the VIX. By midday, the All Share and Top 40 were lower, with breadth narrowly negative at 55 advancers against 75 decliners.

Resource and precious-metal counters cushioned the tape. Resource 20 added 1.12%, the FTSE/JSE Precious Metals & Mining index rose 2.00% and Basic Materials gained 1.00%, while FTSE/JSE Retailers added 1.52%. FTSE/JSE Energy was the weakest sector at -3.11%, with FTSE/JSE Technology down 2.51% and Industrial 25 down 1.69%.

The close retained the soft tone, with the All Share down 0.48% and the Top 40 down 0.49%. The rand weakened 0.69% to 16.5151 against the dollar, a tailwind for rand-hedge miners but a headwind for SA Inc. names. Breadth ended at 53 advancers and 95 decliners.

By the numbers

Breadth: 53 advances, 95 declines, 7 unchanged.

SAP Sappi Limited slumps 13.66% as FY2026 EBITDA falls 41% and lenders suspend covenant testing

Sappi Limited's year to September 2026 was materially weaker, as set out in Sappi Q4 and full-year results. Adjusted EBITDA fell 41% to US$294m and the group recorded a US$747m net loss, with US$405m of special items and higher net finance costs weighing on earnings. Fourth-quarter Adjusted EBITDA was US$99m, in line with August guidance, but management guided Q1 FY2027 below that level.

The earnings pressure led lenders to suspend covenant testing until June 2027 and agree revised leverage thresholds through December 2027. Liquidity remained substantial at US$707m, including US$542m of committed undrawn revolving credit facilities extended to 2031.

Graphic papers sales volumes fell 7% amid structural digital substitution, although cost reductions kept segment margins in line with the prior year. The shares closed 13.66% lower at R11.25, the steepest fall on the day.

TFG The Foschini Group Limited rises 6.98% despite 6.8% HEPS decline and dividend cut

The Foschini Group Limited's half-year to September 2026 was mixed, as detailed in TFG interim results and dividend. Group sales slipped 0.4% to R29.0bn, headline earnings per share fell 6.8% to 272.8 cents and basic EPS fell 9.8% to 262.4 cents. The ordinary dividend was cut 6.9% to 121 cents.

TFG Africa grew sales 3.8% and lifted segment operating profit 2.7%, while online sales rose 53.3%. London and Australia weakened, net bad debt increased 10.2% to R824m and inventory was 4.0% lower than at H1 FY2026. Cash generated from operations rose 20% to R3.7bn.

The group closed 120 stores in the half and plans a further 60 to 80 closures in the second half. Despite the earnings decline, the shares rose 6.98% to R55 after the results and dividend declaration.

PPE Purple Group Limited guides full-year HEPS up 22.3% to 32.3%

Purple Group Limited guided full-year headline earnings per share up 22.3% to 32.3%, according to Purple Group trading statement. Basic EPS was guided 24.9% to 34.9% higher, at between 5.37 and 5.80 cents, with both measures measured against a 4.30-cent prior-year base.

The trading statement provides no cash-flow or segment detail. Audited accounts are due on or about 11 November 2026.

MHB Mahube Infrastructure Limited receives R10.06-a-share firm offer and delisting proposal

Mahube Infrastructure Limited's corrected joint announcement restates the firm cash offer of R10.06 per share, a 67.1% premium to the 3 November close and a 95.7% premium to the 30-day VWAP, as set out in Mahube firm intention announcement. The offeror has irrevocable undertakings from holders of 34.90% of the shares in issue.

The proposed delisting remains subject to scheme conditions and shareholder approval. The circular must include the independent expert's fair-and-reasonable opinion, while the long-stop date of 30 June 2027 and material adverse change clause remain execution risks.

BIK TRP suspends Brikor Limited scheme of arrangement after shareholder complaint

The Takeover Regulation Panel directed Brikor Limited to suspend implementation of its scheme of arrangement while it assesses a shareholder complaint about the Circular, according to the Brikor scheme timetable update. The scheme timetable is suspended, with no resumption date.

The complaint's substance and the complainant's identity are undisclosed, leaving shareholders unable to assess the challenge. Brikor has committed to updating shareholders once the TRP assessment concludes.

AII Aimia Inc swings to Q3 net loss of $14.3m despite 21.3% revenue growth

Aimia Inc's third-quarter continuing-operations revenue rose 21.3% to $45.6m on Cortland pricing and volumes, but the consolidated result swung to a $14.3m net loss from a $3.0m profit a year earlier.

The loss included an $8.3m unrealised fair-value loss on Clear Media and $4.8m of deferred financing costs tied to redeeming the 9.75% senior unsecured notes. Continuing operations generated $3.2m of Adjusted EBITDA.

SHP Shoprite Holdings Ltd core SA sales up 7.1% and Sixty60 up 33.4%

Shoprite Holdings Ltd's core South African supermarkets grew sales 7.1% in the four months to October 2026. Sixty60 sales rose 33.4%, while market-share outperformance was 5.3 percentage points. Other operating segments fell 1.5% after 51 OK Franchise store closures.

The February 2027 interim results will show whether those sales gains translate into earnings growth.

Movers explained

Beyond the results-driven moves in Sappi Limited and The Foschini Group Limited, AngloGold Ashanti plc added 4.95% as the rand's 0.69% weakening and platinum's 1.45% rise reinforced its rand-hedge earnings. ArcelorMittal South Africa Limited and Argent Industrial Limited rose 4.17% and 4.11% in sympathy with Basic Materials' 1.00% gain. Weaver Fintech Ltd's 9.85% jump had no disclosed catalyst and is classified technical/unexplained.

On the downside, Canal+ SA fell 8.30% while FTSE/JSE Telecommunications dropped 1.94%. iOCO Limited and Karooooo Ltd. lost 5.27% and 5.00% as FTSE/JSE Technology fell 2.51%. Clicks Group Limited's 4.14% decline had no disclosed catalyst.

What we are watching

Attention turns to Sappi's Q1 FY2027 delivery against its lower guidance, AngloGold Ashanti plc's momentum and the rand's direction. Purple Group's audited results are due on or about 11 November 2026, while the Mahube circular and Brikor's TRP determination will shape the next steps in those corporate actions.