Sometimes the market gets it very wrong, resulting in extremely positive or negative earnings surprises. That appears to be the case with Adapt IT and Nampak as shares in both companies rallied yesterday after they provided updates.

Adapt IT didn't have a great first half so yesterday's trading statement would imply a significantly better second six months. That's despite the impact of Covid-19 on its businesses serving the hospitality sector, in particular. It clearly took the market by surprise, sending its shares 60% higher. Nampak wasn't far behind with a 45% gain after it informed investors of a couple of new lucrative contracts and a decline in its dollar debt.

Even Capitec's results were better than the market anticipated, sending its shares 5.5% higher. Like other banks, its credit impairments have soared as a result of Covid-19 and it isn't paying a dividend. Neither is Sasfin, which swung to a full-year loss due to higher credit impairments and private equity devaluations.

Meanwhile, PPC has again postponed the long-awaited release of its annual results after it detected more errors in accounts from previous years. Look out for them next week.

Finally, Barloworld seems to have come to terms with its acquisition of Tongaat Hulett Starch after trying to get out of the deal due to the potential impact of Covid-19 on the business. Read on for more.

I hope you have a good day.

Stephen Gunnion

Managing Editor, InceConnect

The latest from Ingham Analytics

Capitec interim results contained no surprises, say Ingham Analytics, but earnings came in slightly better than estimated at 562 cents per share compared with a forecast of 483 cents. They forecast a 50% reduction in earnings for the year ended February 2021 but may review this. Their most recent analysis on Capitec is "Looking for dips" although with the price breaching R1,000 yesterday they reiterate caution about chasing the stock.

Meanwhile, for investors in Prosus, Naspers and Tencent their latest thinking can be read in "Ant(icipating) a listing", which is a nod to the Ant Group IPO with Alipay a competitor to Tencent's WeChat Pay.

The gold price has edged up $1,890/oz and "All that glitters?" looks at what is driving gold and how to play it whilst "Uh-ho!" gives some useful tips on the risk-on, risk-off cycle over in the US.