The JSE is currently a minefield for investors who have to tread increasingly carefully as corporate earnings take a hit due to the Covid-19 lockdown. That's not to mention the number of companies whose problems are of their own making.

While Steinhoff listed some of the significant advisory fees it's forked out as it tries to recover from the accounting fraud that was uncovered in December 2017, the JSE announced that it had fined Tongaat Hulett the maximum for misstatements in its financial accounts - although it granted a little leniency due to its current tight situation. The penalty has been cut by a third as long as the company isn't found to be in breach of material and important provisions of its listing requirements for the next five years.

Meanwhile, lifestyle investment group Long4Life has warned shareholders that it will report a first-half loss due to the impact of the lockdown on its businesses. Mining services company ELB Group says it plans to delist because its businesses will make losses this year due to the pandemic and raising the funds it needs will be easier to do as an unlisted company.

Also in your newsletter today, higher education group Stadio is pushing back the opening of its new multi-faculty campus in Centurion due to Covid-19 but hasn't experienced much fallout as a result of the virus and Sasol is making headway with its asset disposal programme as it readies itself for a possible rights issue.

I hope you have a good day.

Stephen Gunnion

Managing Editor, InceConnect

The latest from Ingham Analytics - Anglo American plc

Ingham Analytics has issued an updated note on Anglo American entitled "Cold on coal" which as the name suggest takes a look at the coal assets of the group and what contribution can be expected this year. Metallurgical and thermal coal combined contributed 35% of group EBITDA in 2018 but this declined to 18% last year. Current pricing and production trends are not promising say Ingham Analytics, in part due to Covid-19. Iron ore is the opposite, they say, and is set to be the mainstay of Anglo American earnings this year, increasing the percentage contribution. Is Anglo American a buy, what can we expect for earnings this year? Find out here.

As quantified yesterday in the morning email, Tencent dominates earnings of Prosus. Most of the other assets are generating higher losses and absorbing more cash. In "iQIYI - a s(c) or (t)reaming deal for Tencent?"Ingham Analytics take a look at a putative deal with Baidu to take a majority shareholding in iQIYI. However, they do pose questions marks. Also, in the light of the Prosus result this week, shareholders may be interested to know what the see-through discount to the stake in Tencent is currently. What is a good trading or investment tactic right now?