It took Capitec just 20 years to not only break the dominance of South Africa’s Big Four but to also overtake Standard Bank for the first time to become SA’s second-biggest bank by market value.
Earlier this year the bank also took over FNB’s throne of South Africa’s Best Digital Bank. In just five years, Capitec has grown its customer base by 7.5 million people to 16.7 million. To put that into context, the number of people who joined Capitec between August 2017 and August this year equates to Nedbank’s entire customer base.
Business Day reports yesterday’s 2.43% rise in its share price to R1,867.27 pushed the bank’s market capitalisation of R215.9bn, eclipsing Standard Bank’s R213.35bn valuation.
Seems like the bank is now gunning for FirstRand, South Africa’s biggest bank with a market cap of R322.4bn, competing on the affordability and digital metrics. This week the bank launched Capitec Pay Me, enabling its clients to make and receive secure payments from other Capitec clients at no cost through a personalised QR code on its app.
On the omicron front, the US officially confirmed its first infection, some countries are starting to lift the travel ban and South Africans are racing to get jabbed as we are clearly entering the fourth wave. News24 reports that Gauteng alone recorded more than 6,000 new Covid-19 infections of the country’s 8,561 new confirmed cases as of yesterday.
Meanwhile, what happens in the US doesn’t stay in the US, and if market moves are anything to go by, the wall of worry should concern stock investors worldwide. In addition to the omicron variant, stock prices are also plagued by inflation, rising interest rates and valuations and may be subjected to year-end volatility and perhaps even some profit-taking after a solid year of gains.
Bloomberg reports the latest selloff on Wall Street is the broadest since the worst pandemic fears last year, with the Nasdaq 100 index – which rose 14% during the ‘peak’ delta months of June, July and August – has fallen 3% since Thanksgiving, when omicron first hit the attention of traders. But the strategist over at JPMorgan Chase & Co reckons that omicron – more transmissible, but less deadly – could signal the end of the pandemic and the recent market turmoil may offer investors a chance to position themselves to buy the dip in cyclicals, commodities and reopening themes.
In the forex market, omicron concerns and the collapse in the lira after President Erdogan fired his finance minister for opposing further interest rate cuts pushed the rand back up above R16 to the US dollar. “The lira once again collapsed to record lows against the dollar and dampened the recovery in EM currencies. The rand firmed to R15.75 yesterday but closed weaker on the day at R16.03, which is where we are trading this morning,” comments TreasuryONE.
The focus remains on omicron, while tomorrow’s US unemployment data may also move markets, according to the forex trading house.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
If e-tolls are scrapped, fuel will become even pricier, warns Mantashe – News24
Pfizer and Merck in talks to offer Covid-19 pills in South Africa – BusinessTech
Energy dept ‘profusely apologises’ for wrong petrol price increase figure – EWN
Global Business
Facebook uncovers Chinese network behind fake expert – AFP
American corporations could pay to vaccinate the world 10 times over with just their extra profits from 2021 – Business Insider
Disney elects woman as chairman for first time in 98-year history – BBC
Markets
Asian stocks mixed with traders sensitive to omicron headlines – AFP
JPMorgan says buy the dip as omicron may signal pandemic ending – Bloomberg
Top oil producers may freeze output amid omicron concerns – AFP
Opinion/In-depth
They can run, but they can’t hide forever: We must never give up in our pursuit of the Guptas – Daily Maverick
Andre Vlok: The consequences of govt. getting the Covid-19 message wrong – News24
Communities, corruption and carcasses: when the Kruger National Park, the bushmeat trade and the Mthimkulu’s complex history collide – Daily Maverick
Video
Factories face supply headaches with omicron risk – Reuters
Venezuela’s hospital ‘hell’ – BBC
Australia launches inquiry into tech giants – Reuters
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