Global markets tumbled yesterday as a rise in coronavirus cases across the world rattled investors and Italy put a number of towns into shutdown as it confirmed 150 cases and four deaths from the pandemic. The JSE closed over 4% lower in what some commentators said was its largest percentage fall in at least a decade.

Commodity stocks in particular were beaten down due to the impact the virus could have on world growth - and demand. It's therefore difficult to tell how much of the slide in Sasol's share price was due to interim results, which saw it cancel its dividend, and how much because of risk aversion. Any slump in demand will further weigh on the prices of oil and chemicals.

While Sasol is also still seeing losses from its Lake Charles Chemicals Project in the US, the turning point could be close. It expects it to report positive operating results in the months to come.

Meanwhile, JSE Limited, the operator of the stock exchange, has seen its fair share of volatility over the past year, including a drop in the number of companies listing on the exchange. That's been replaced by increased listings of bonds and other investments. It reported annual results yesterday and maintained its full-year dividend payout despite a drop in earnings.

Shopping centre owner Liberty Two Degrees has kept its dividend more or less unchanged too following a resilient performance from its property portfolio. Due to the tough environment, it's advised investors to expect much the same next year.

Also in today's newsletter, Super Group has reported its first decline in revenue and earnings in over a decade and Adapt IT has had a tough time as well.

Finally, with the end of the tax year just around the corner, Jaltech Fund Managers provides some tips for you to get the most out of your Section 12J tax advantages. Follow this link for quick access.

I hope you have a good day.

Stephen Gunnion

Managing Editor, InceConnect

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