Vodacom +7.2% drives telecoms surge as resources drag JSE lower

A risk-on morning built around Vodacom's interim results and a firmer rand narrowed into a mixed session as gold and PGM miners absorbed a softer bullion price.

How the day unfolded

The session opened risk-on after global equities rallied overnight, with the rand strengthening and favouring SA Inc. names while Vodacom's interim results set the SENS agenda. By midday the JSE held a modest gain but leadership had narrowed to Communication Services, where Vodacom and Premier drove selective buying, while resources, basic materials and energy lagged.

That narrow tape faded into a mixed close. The Top 40 ended 0.33% lower at 106,738 and the All Share lost 0.30% to 114,693. The FTSE/JSE Telecommunications index gained 2.93% on Vodacom, with Beverages up 2.49% and the Industrial 25 up 1.06%, but Precious Metals & Mining fell 3.24%, Resource 20 lost 2.60% and Basic Materials dropped 2.55% as gold slid 2.18%.

The rand strengthened as USD/ZAR fell 0.27% to 16.4907, pressuring rand-hedge miners while supporting banks and retailers; the Financial 15 added 0.51%. Brent's 2.60% drop to $90.16 added to the resource sector's drag. Breadth was mixed at 86 advancers to 72 decliners.

By the numbers

Breadth: 86 advances, 72 declines, 6 unchanged.

VOD Vodacom interim results beat guidance, dividend up 7.6%

Vodacom delivered headline earnings per share up 25.7% to 587cps for the six months to 30 September 2026, with pro-forma EBITDA growth of 18.0% ahead of its guidance range and pro-forma service revenue up 13.3%, trending above the medium-term target. Operating free cash flow rose 68.2% to R16 855 million.

The interim dividend was lifted 7.6% to 355cps, confirming the revised payout policy, while financial services revenue jumped 99.0% to R15.9bn, or 19.2% on a pro-forma basis including Safaricom.

The balance sheet stepped up as net debt to EBITDA rose from 0.9 times to 1.6 times and capital expenditure climbed 41.0% to R13 279 million. Net profit from associates and joint ventures fell 22.7% to R1 409 million.

The one serious caveat is the Kenyan High Court ruling that declared the Safaricom acquisition null and void. The status quo is maintained pending an expedited appeal, but the outcome will determine whether Vodacom's consolidated earnings base is durable.

MKR Montauk Renewables flags late filing, stock falls 37%

Montauk Renewables rescheduled its third quarter 2026 earnings release and conference call, saying it was still finalising its Form 10-Q for the period ended 30 September 2026. The company filed a Form 12b-25 late-filing notice with the SEC, extending the deadline to Monday 16 November 2026.

Neither filing gives a reason for the delay beyond finalisation, and no financial figures or guidance were disclosed. The next disclosure that matters is the delayed Form 10-Q itself, where the September-quarter revenue, earnings and cash flow will finally appear.

PMR Premier Group revenue up 38.8%, HEPS up 27.1%

Premier Group's first half with RFG on board delivered revenue of R14.3bn, up 38.8% and inside the guided 35%–45% range, with HEPS up 27.1% to 711.1c and EBITDA up 51.4% to R2.0bn. Operating profit rose 52.5% and cash generated from operations improved 43.0% to R1.8bn.

The integration is on track with leverage at 0.7x, in line with the pre-acquisition level despite debt assumed in the RFG transaction. However, Millbake — still 66% of revenue — grew only 1.3% as raw-material deflation bit, and sugar confectionery underperformed, leaving the market waiting for volume-led growth from the core business.

PWR PowerFleet revenue up 5% but operating profit falls 26%

PowerFleet's first-half fiscal 2027 results showed revenue up 5% to USD226,516,000, but operating profit fell 26% to USD1,625,000 and the headline loss widened 7% to USD15,537,000. Headline loss per share increased 9% to USD0.12 from USD0.11.

Adjusted EBITDA rose 3% to USD46,442,000, but that did not offset the deterioration in the reported profit line. The summary filing does not show whether cost inflation, mix shift or investment spending drove the gap between revenue growth and the falling operating profit; the full Form 10-Q is needed to identify the cause.

BID Bidcorp four-month trading update shows constant-currency growth, rand drag

Bidcorp's four-month trading update showed constant-currency revenue up 2.4%, trading profit up 8.2% and HEPS up around 10.0%, with gross margin improving to 25.0% from 24.0%. The group also repurchased a further R292m of shares.

But rand translation cut reported revenue by 7.7%, leaving rand revenue down 4.3%, while cost of doing business rose to 19.1% of net revenue. UK CFBG operations remained weak and Greater China sales stayed under pressure, although early November traded in line with expectations and the festive period carries early optimism.

SSS Stor-Age lifts distributable income 4%, reaffirms guidance

Stor-Age delivered distributable income per share up 4.0% to 69.04c and a 62.14c dividend, with SA rental income growing 9.5% and distributable earnings up 10.4%. The board reaffirmed FY27 guidance of approximately 5.0% distributable income per share growth.

The payout ratio remained at 90%, leaving thin cover above the dividend. UK occupancy stayed at 81.5% with UK rental income up only 0.9%, and the Xtraspace acquisition is still conditional on competition-authority approval.

AVI AVI chairman reports flat revenue, mixed trading

AVI's chairman told the AGM that four-month revenue to 31 October 2026 was flat year on year. Snackworks and I&J grew revenue, while Entyce and Fashion Brands faced price competition and constrained consumer demand. Reported operating profit fell marginally on R90.1m of once-off wage-restructuring costs, though it improved excluding those costs, and SPITZ lay-by units were 7% higher ahead of the December festive period.

Movers explained

Mantengu's 22.22% jump was thinly traded and technically unexplained, while Brimstone and Stefanutti Stocks had no disclosed catalyst. Vodacom and Premier gained on their interim results. On the downside, Montauk Renewables fell 37.01% on its late-filing notice, MC Mining's 19.35% decline was flagged SENS-linked with Brent adding pressure but not explaining the magnitude, and DRDGOLD and Harmony Gold were hit by the 2.18% gold slide and stronger rand; Harmony also published an operational update. Alexander Forbes' 5.18% fall had no disclosed catalyst.

Director dealings

Aspen Pharmacare saw several directors and prescribed officers sell on market on 9 November, led by Sean Matthew Capazorio's R1,138,573.92 sale and Lorraine Angela Hill's R999,067.52 disposal. Cashbuild directors and the company secretary received share scheme awards, the largest being W F De Jager's R5,143,964.65, with H Bester and S A Thoresson at R2,868,024.39 each.

What we are watching

Attention turns to Vodacom's expedited appeal on the Safaricom ruling and whether Harmony's operational update feeds further gold-sector weakness. The rand and gold price remain the swing factors for resource counters, while Montauk's delayed Form 10-Q is due by 16 November and YeboYethu's own interim results are expected around 26 November.