JSE rallies as resources lead: MTN shines, MC Mining sinks

The JSE staged a broad risk-on rally on Monday as gold and platinum strength carried resources higher, while a firmer rand pressured dollar earners such as Sasol. The day's standout corporate news was MTN's strong quarterly update showing accelerating service revenue growth.

How the day unfolded

The session opened on a cautious note as strong Asian equity gains and a falling VIX were offset by sharp European losses. Early SENS attention centred on Octodec, Raubex and Omnia updates, with the market leaning selectively positive into the open.

By midday the JSE had rotated decisively into resources. Basic Materials led the tape, with Communication Services also firm, while Technology and Financials slipped. Breadth was narrow at 72 advancers to 57 decliners, and the rand was flat, leaving FX out of the driver's seat.

The close confirmed the risk-on stance. The Top 40 closed up 2.27% and the All Share up 2.04% as Resource 20 and Precious Metals & Mining led, while Chemicals and Beverages lagged. The rand strengthened 0.33% against the dollar, supporting SA Inc. names but pressuring USD-earning rand hedges. Breadth finished at 100 advances to 53 declines.

By the numbers

Breadth: 100 advances, 53 declines, 3 unchanged.

MTN Quarterly update shows service revenue up 17.2% and EBITDA up 22.9%

MTN's nine-month update showed constant-currency service revenue increasing by 17.2% and EBITDA by 22.9%, with the EBITDA margin up 2.8 percentage points to 47.9% despite higher energy costs. The group generated R22.4 billion of free cash flow and upstreamed R21.4 billion to the holding company, closing at 0.2x net debt-to-EBITDA.

The September exit rate of 18.1% service revenue growth confirms the acceleration the group described from May onward, with Nigeria, Ghana, Rwanda and Zambia all accelerating in the quarter. Airtime Advance resumed in Nigeria in July and Q3 revenue rose 77.9% on Q2.

The caveats are South Africa-focused: MTN South Africa expects full-year service revenue growth below its low-to-mid single-digit medium-term range, and fintech revenue growth is expected to remain below the high-20%s to low-30%s range. Prepaid subscribers declined 6.9% to 27.4 million.

The update confirms strong operating momentum and cash generation, but the open question remains whether MTN South Africa can rebuild top-line growth rather than just margin improvement.

MCZ Plunges 24.39% after SENS on KDG bridge loan, Makhado operations and director resignation

MC Mining dropped 24.39% to R2.48 after a SENS announcement covering a KDG bridge loan, Makhado operations and a director resignation. The filing signalled company-specific distress around funding and governance rather than a sector move.

The session's mover review classified the decline as SENS-linked with high confidence.

The move was isolated: the Energy sector index gained 2.30% and Basic Materials rose 4.49%, so MC Mining diverged sharply from its peer group.

ENX Guides a swing to a HEPS loss of 14.2c–5.3c from 53.2c earnings

enX guided a swing in total-operations headline earnings per share to a loss of between 14.2c and 5.3c, from prior-year earnings of 53.2c. Continuing operations are expected to post a wider basic loss of 13.2c to 11.3c, versus a 9.7c loss a year earlier.

The deterioration reflects the asset-sale strategy: the WAI disposal delivered about R295 million in proceeds, but the remaining Power O2 and Service Centre operations are losing more than before. The company returned surplus capital via a 192c per share special distribution in June, but the trading statement gives no cash or balance-sheet detail.

OMN HY27 results land inside guidance: operating profit up 26%, HEPS up 25%

Omnia reported operating profit up 26% to R1,135 million and headline earnings per share up 25% to 399 cents, landing inside the 18%–28% HEPS band guided on 3 November. EBITDA rose 21% to R1,434 million.

The cash position halved to R366 million from R695 million, and the SARS transfer-pricing dispute remains unresolved, leaving litigation open if no negotiated settlement is reached. The results confirm a strong operating engine but leave questions on the working-capital build and the tax exposure.

RBX Lifts revenue 11.8% and dividend to 88c, but operating profit grows only 2.5%

Raubex grew revenue 11.8% to R12.12 billion and lifted its interim dividend to 88 cents from 81 cents, while cash generated from operations rose 104.1% to R1.56 billion. The order book climbed 24% to R39.00 billion.

Operating profit growth was modest at 2.5% to R618 million, reflecting margin compression, and headline earnings per share rose only 4.4% to 254.3 cents. The doubling of operating cash flow and the larger pipeline support the growth story, but holders will watch whether margins stabilise.

OCT Lifts FY2026 DIPS guidance to +11%–13%, more than double its May guidance

Octodec lifted its FY2026 distributable income per share guidance to growth of 11.0% to 13.0%, more than double the 3.0% to 5.0% range guided in May. The upgrade is driven by the gas-explosion insurance claim settlement, lower repairs and maintenance spend, and finance-cost savings.

The company expects DIPS of 190.37 cents to 193.80 cents, up from 171.51 cents in FY2025, and a final dividend of 83.45 to 87.49 cents per share. The insurance settlement is a real but non-recurring boost, and the market will test how much of the uplift is repeatable when audited results arrive on 24 November.

BAT Virgin Active to acquire Holmes Place Germany for €135m cash at 6.3x EBITDA

Brait's 61%-held Virgin Active signed an unconditional agreement to acquire Holmes Place Germany for €135 million in cash, valuing the business at 6.3x forecast 2026 EBITDA. Holmes Place Germany brings 13 clubs and 84,100 members, with forecast revenue of €70.2 million and EBITDA of €21.5 million.

The deal lifts Virgin Active's non-South African operations to 56% of group EBITDA and gives immediate scale in Europe's largest fitness market. Gearing is expected to rise from 2.4x to 2.9x net debt-to-EBITDA, funded from existing cash, leaving holders to weigh the higher debt against the strategic benefit.

ISA Updates interim HEPS guidance to 10.76–12.64 cents, up 14.5%–34.5%

ISA Holdings narrowed its interim headline earnings per share guidance to 10.76 to 12.64 cents for the six months to 31 August 2026, up 14.5% to 34.5% from 9.40 cents. The EPS number is largely boosted by a disposal gain on the sale of its 50% DataProof stake, while the HEPS range straddles the floor set in the August trading statement. The underlying quality of earnings remains unproven until the interim results.

Movers explained

On the upside, ASP Isotopes (ISO) jumped 19.96% with no disclosed company-specific catalyst, classified as technical or unexplained. Montauk Renewables (MKR) gained 14.00% alongside a 4.49% rise in Basic Materials, reflecting broad sector support. Canal+ SA (CNP) advanced 12.05% as Communication Services rose 4.35%, with no idiosyncratic SENS headline. Wesizwe Platinum (WEZ) rose 8.11% but is thinly traded and illiquid, so the move is not treated as a broad market signal. AngloGold Ashanti (ANG) gained 7.35% as gold and platinum climbed, despite the firmer rand acting as a headwind on its USD earnings. On the downside, MC Mining (MCZ) fell 24.39% following its SENS on the KDG bridge loan, Makhado operations and a director resignation. Sasol (SOL) declined 8.13% as Brent fell 4.39% and the rand strengthened, pressuring its rand-hedge dollar earnings. Sappi (SAP) fell 8.00% despite the Basic Materials index gaining 4.49%, with no disclosed catalyst explaining the underperformance. Lesaka Technologies (LSK) dropped 7.46% without a supplied SENS headline or supporting Technology sector evidence, leaving the move technically unexplained. ArcelorMittal South Africa Limited (ACL) fell 5.60% even as Basic Materials rose 4.49%, with no SENS headline or macro instrument supplied to explain the divergence.

Director dealings

Thungela Resources director Bernard Dalton sold shares worth R1,268,515.56 on 3 November 2026 in an on-market sale.

What we are watching

Next up: Basic Materials sector follow-through and the direction of USD/ZAR after the rand's firming. Brait's interim results are due on 11 November, ISA's on 13 November, and Octodec's audited FY2026 results on 24 November. Sasol's price action after its 8.13% drop is the near-term watch item.