COMPANY COMMENT: Puzzling case of Net1’s share-price movement
The Black Sash had intervened in that application in a bid to protect social grant beneficiaries
It’s difficult to know what determines movements in Net1’s share price these days. In mid-June the share inexplicably bounced up to R130, holding that level for a few days before sliding back to about R123 on Thursday, where it has been trading for much of the past few months. Rather puzzling is that the recent drop came in the wake of the high court decision to refuse the Black Sash leave to appeal against an earlier ruling, which had been made in Net1’s favour. The court ruled in May in favour of Net1’s challenge of new regulations that had been issued by the minister of social development with the intention of limiting deductions from social grants. The Black Sash had intervened in that application in a bid to protect social grant beneficiaries. If the court found in favour of Net1’s challenge of the regulations, the Black Sash wanted it to order the minister to issue new regulations that would protect grant beneficiaries. The Black Sash may have had a compelling argument, but th...
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