Tsogo Sun on top of its game with 50% climb
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The stock has been on the back foot over the past two months after President Cyril Ramaphosa introduced a lockdown towards the end of March to contain the spread of Covid-19 infections.
However, the stock fell to a record low 10 days ago to R1.31 a share after the group warned that its earnings for the year to end March would decline by more than 20percent, hurt by nearly R2billion in impairments.
The share price leapt to R4.15 a share yesterday before closing at R4.11.
Tsogo Sun Gaming has 13 casinos and 23 Galaxy bingo sites in its portfolio.
This comes after Tsogo Sun demerged last year into two parts, Tsogo Sun Gaming and Tsogo Sun Hotels.
Casinos are still not allowed to operate during the lockdown, but Tsogo Sun Gaming chief executive Chris du Toit said the industry had made a representation to the Department of Trade and Industry (dti) for the casinos to open under level 3 of the lockdown.
Du Toit was responding to Tourism Minister Mmamoloko Kubayi-Ngubane, who announced during a briefing on Saturday that gambling was not allowed under lockdown level 3.
“We are disappointed that we are still not allowed to operate under level 3, but we have made submissions to the government and the dti,” Du Toit said, adding that he hoped that the industry’s submissions to the government would be considered.
He said the industry had presented an alternative that included social distancing and hygiene measures and it would continue to engage the government on its suggestions.
“We are confident that we can practice social distancing if we are permitted to operate, because we can function between 33 and 50 percent of our capacity,” Du Toit said.
He added that the industry was one of the big job providers in South Africa as it employed about 25000 people.
“We have invested about R100bn in the last two decades in the country,” he said.