Business confidence climbs but reserves dip, thanks to dollar

South Africa's business confidence index rose in February, lifted by higher manufacturing output and evidence that economic recovery, which started in the third quarter, had gathered pace

The SA Chamber of Commerce and Industry said the index rose to 83 in February from 81.2 in January.

Factory output swung positive in the year to December, snapping 14 months of contraction. The economy grew by 3.2% in the fourth quarter of 2009, after a 0.9% rise in the third quarter, which ended the country's first recession in almost two decades.

• Industrial group Bidvest posted a 9% rise in first-half profit helped by cost cuts and a strong performance from its Asia-Pacific unit.

• Sugar group Tongaat Hulett posted a jump in headline earnings, lifted by higher world sugar prices. The group, with interests in land management, property development and agriculture, said diluted headline earnings per share rose to 795.5 cents in 2009, up from 554.1 cents in the year before.

• SA's purchasing managers' index jumped to 60.4 in February, a near-three-year high. The key measure of manufacturing activity increased from 53.6 in January, beating the break-even 50 mark for a fourth consecutive month.

• Metorex reported a return to headline profit, thanks to higher copper and cobalt output. Headline earnings per share for the six months to end-December were 11.8 cents, compared with last year's loss of 0.70 cents.

• Foreign investors were net buyers of South African stocks in the week ending February 26, with a net R102-million worth of equities, according to the JSE. Foreigners were also net buyers of South African bonds.

• New vehicle sales surged 20.5% in February, pointing to a recovery in one of the economy's key sectors. February marked a second consecutive month of year-on-year increases after nearly three years of declining sales.

• Group Five reported an 8.3% rise in first-half diluted headline earnings, boosted by large 2010 World Cup and transport infrastructure contracts.

• Aspen Pharmacare, Africa's biggest generic drug maker, expects its revamped Latin American business to help it match the 27% rise in first-half profit in the second half. Aspen, 19% owned by Britain's GlaxoSmithKline, said headline EPS rose to 242.3 cents in the six months to end-December.

• Insurer Santam boosted 2009 profit by 55% after no large industrial fire claims hit second-half returns. The country's biggest property and casualty insurer said strong investment returns also helped push up earnings.