JSE Close: Resources hammered, Deneb and Stefanutti surge on earnings upgrades

The JSE closed sharply lower on Thursday, with the All Share shedding 2.4% as commodities weakness rippled through the resource-heavy indices. The FTSE/JSE Basic Materials and Precious Metals & Mining indices fell 5.99% and 6.96% respectively, dragging the Resource 20 down 6.13%. Reunert suffered the steepest single-stock decline at 14.07% to R61.01, while the platinum group metal sector bore the brunt of selling, with African Rainbow Minerals down 8.36%, Northam Platinum off 7.56%, and Harmony Gold retreating 7.21%. Sasol bucked the trend, gaining 3.93% to R224.72 after disclosing board committee changes, and Karooooo led the risers with a 4.7% advance to R754.35.

DNB Deneb projects headline earnings to surge by up to 67%

Deneb Investments has issued a trading statement projecting headline earnings per share to grow between 47% and 67% for the year ended 31 March 2026, with basic EPS expanding by 63% to 83%. The robust double-digit growth signals strong fundamental execution across the group's portfolio. The figures remain preliminary and unaudited, but the scale of the expected uplift is material enough to draw attention from income and growth investors alike. At the current share price, the trailing P/E multiple stands at an undemanding 7.1x, suggesting the market may not yet be fully pricing in this earnings momentum. Investors should note that headline and basic EPS ranges differ in width, implying that some of the bottom-line expansion may be attributable to non-core items rather than purely operational outperformance. The share closed marginally lower on the day, which may reflect short-term profit-taking after recent gains rather than a repricing of the positive fundamental outlook. The full audited results are expected to provide greater divisional detail and confirm whether the growth is broad-based or concentrated in specific assets within the Deneb portfolio.

NRL Newpark REIT FFO and dividends plunge 36% as board withholds 2027 guidance

Newpark REIT reported a sharp 36.1% decline in Funds from Operations and total dividend for the year ended 28 February 2026, alongside a 2.6% contraction in revenue to R129.4 million. The deterioration stemmed primarily from the disposal of the Crown Mines property and negative rental reversions on the JSE lease, both of which weighed on core cash generation. Operating profit before fair value adjustments did rise 2.6% to R93.6 million, and the loan-to-value ratio improved to 37.7% from 43.1%, reflecting active balance-sheet management. Net asset value per share increased by 7.09% to R6.04, supported by positive valuation changes on the remaining property portfolio. Headline earnings per share grew 18.7% to 50.28 cents and basic EPS surged past 100% to 87.38 cents, helped by fair value movements. The headline divergence between rising statutory earnings and collapsing distributable income is stark, and the board has explicitly declined to provide FFO or dividend guidance for the 2027 financial year, citing uncertainty surrounding an unresolved shareholder proposal. The share trades near its 52-week high, a level that appears to reflect corporate action speculation rather than operational fundamentals.

APF Accelerate cancels R88 million Bosveld Mall disposal after buyer repudiates deal

Accelerate Property Fund has cancelled the R88 million disposal of the Bosveld Bela Bela Shopping Centre after the purchaser repudiated the agreement, despite all suspensive conditions having been fulfilled. The collapse of the transaction represents a clear execution setback for the group's capital recycling programme, which had relied on this disposal to unlock cash for debt reduction or reinvestment. Management has indicated it will immediately re-market the asset, but finding a replacement buyer in the current environment introduces meaningful uncertainty and potential delay to the group's strategic plans. The company is exploring legal recourse, including potential damages claims, to recover value lost from the failed transaction, though no quantification of any recovery has been provided. Valterra Platinum, which has exposure to the broader platinum sector and related property interests, fell 7.34% on the day amid sector-wide selling, compounding the negative sentiment around the Accelerate announcement.

SSK Stefanutti Stocks forecasts triple-digit earnings growth on Eskom settlement boost

Stefanutti Stocks projects total operations HEPS to rise between 220% and 240%, reaching between 349.95 cents and 371.82 cents per share, driven largely by the R580 million settlement with Eskom regarding the Kusile Power Project. The net profit after tax from this settlement contributed R492 million to the bottom line, providing a substantial boost that underpins the triple-digit growth headline. Continuing operations HEPS for the same segment is expected to grow by 195% to 215%, reflecting the structural impact of recent disposals alongside the Eskom resolution. While the growth percentages are mathematically striking, investors should recognise that the bulk of the improvement stems from one-off corporate actions rather than underlying operational expansion, which limits the thesis-upgrade value of this announcement. The figures remain unaudited and the full results publication will provide clarity on the sustainability of earnings once the non-recurring items are stripped out. The trading statement confirms that the balance-sheet cleanup is progressing, but the one-off nature of the gains warrants cautious extrapolation for forward investment convictions.

SLG Salungano regains JSE listing status as suspension lifted after reporting remediation

Salungano Group has officially lifted the suspension of its securities after bringing all financial reporting fully up to date as of 30 April 2026. This remediation resolves a prolonged compliance failure dating back to missed audited results for the year ended 31 March 2023, which had trapped shareholders in illiquid positions with no normal market access. Restoring trading removes a severe liquidity constraint and eliminates the immediate delisting risk that had hung over the counter. Management demonstrated a prolonged inability to meet reporting requirements during the suspension period before finally catching up, which may warrant additional scrutiny on the governance culture within the group. The lifting of the suspension is a positive step that restores market access, but it confirms only regulatory compliance, not a fundamental operational turnaround or justification for demanding valuation multiples. Existing holders who were trapped during suspension can now exit through normal trading, while new investors should weigh the history of reporting failures against any fundamental investment case before establishing positions.

What we are watching

Investors should monitor for the publication of Deneb's full audited annual results, which are expected to provide divisional breakdowns that will either confirm or qualify the strong trading statement figures. Newpark REIT shareholders will be watching for any update on the status of the unresolved shareholder proposal that prompted the board to withhold 2027 guidance. Accelerate Property Fund is expected to provide an update on its strategy for re-marketing the Bosveld Bela Bela Shopping Centre following the failed disposal.