It appears that retailers are not yet out of the woods despite the continued easing of lockdown restrictions globally - and not by a long shot if a trading update from The Foschini Group (TFG) is anything to go by. The JSE's General Retailers Index fell over 2% yesterday, led by a 4.8% decline in TFG's shares price after it warned that first-half earnings would be at least 20% down on last year.

Apart from the fallout from Covid-19, which continues to impact sales, the retail group has lost thousands of trading hours as a result of load shedding. It can't be the only one so watch out for similar warnings.

Meanwhile, Harmony hasn't derived the full benefit of this year's gold price rally due to derivative instruments it has in place, while the weaker rand also impacted its dollar denominated debt. It says it is now locking in the current higher gold price as part of its hedging programme.

More on these to following, along with results from African Rainbow Capital Investments, which also announced a rights issue yesterday. PPC, too, may pursue a capital raise as part of the restructuring and refinance of its debt. Also, updates from Transaction Capital and Remgro.

Don't forget to take a closer look at our new partner, Rand Swiss, if you're looking for advice on how to navigate current tough market conditions. It's currently ranked South Africa's #1 Stockbroker, Best Advice Broker and People's Choice Award Winner by the Intellidex/Financial Mail Top Stockbrokers Survey.

It's easy to become a client and you can choose the level of service you require depending on how involved you need them to be in each buy and sell decision. Click here to find out more.

I hope you have a good day.

Stephen Gunnion

Managing Editor, InceConnect

The latest from Ingham Analytics

Benchmark 62% Fe fines iron ore has risen by over 60% since the start of this year, currently $128/t and at multi-year highs. Ingham Analytics in "Steel yourselves" say there is no sign of this waning with the iron ore market continuing to tighten. Iron ore futures prices are firm too. China has been the driver but they say there are now signs of a recovery elsewhere. Steel prices are strong. For Kumba (Anglo American owns 70%), BHP, Fortescue and Rio Tinto this has significant implications.

The Nasdaq was up yesterday with Tesla again climbing but the tech sector remains in a volatile place. "The devil incarnate, Softbank?" discusses the role this Japanese conglomerate has played and how it has done it.