BUSINESS CONFIDENCE
How Ramaphoria is good for Imperial
The transport and logistics group says improved business and investor confidence bode well for its earnings prospects
Transport and logistics group Imperial acknowledged the new political changes under President Cyril Ramaphosa, saying they have given rise to improved business and investor confidence, which bode well for its earnings prospects. The company will generate at least 54% of its revenue in the year to end-June, which renders it a key player in the local economy, according to its trading update released on Thursday. In the matching period a year ago, its revenue line stood at a heady R119.5bn. The prospect of an economic recovery under Ramaphosa stirred a clamour for locally orientated stocks, pushing the value of Imperial shares on the JSE from R191 in October to a record R284 by the end of January. The stock has since retracted to R220 as "Ramaphoria" abated and the rand retreated from its multiyear best of R11.51/$, reached in February. Unum Capital trading desk analyst Lester Davids said the stronger rand would have provided scope for the Reserve Bank to cut interest rates, thus helpi...
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