Daily Market Overview 27 September 2021

We are proud to share our Daily Market Overview with you, ensuring that you do not miss out on any information.

Local Market Update

– Johannesburg-listed stocks rose on Thursday, with the All-share index ending up 1.1% at 64,049
points and the Top-40 index closing up 1.2% at 57,643 points. Industrials and financials were the
biggest boost on the day, adding 1.70% and 1% respectively. In other news, the repurchase (repo)
rate of the South African Reserve Bank (Sarb) remains unchanged at a record low of 3.5%, governor
Lesetja Kganyago announced on Thursday. This means that the prime lending rate of commercial
banks also remains at a five-decade low of 7%. The local market was closed on Friday for Heritage
Day.

– The rand gained strongly on Thursday, as the dollar fell on global markets and the central bank
held its main interest rate at a record low. At the close of Thursday’s session, the rand was 0.38%
firmer against the dollar as it traded around R14.76. Local markets were closed on Friday, while the
rand softened 1.1% to close out the week at the R14.92 mark.

– Gold prices edged higher this morning as persistent concerns over the fate of debt-laden property
giant China Evergrande and its broader impact bolstered the precious metal’s safe-haven appeal.

– Oil prices rose for a fifth straight day earlier this morning with Brent heading for $80 amid supply
concerns as parts of the world sees demand pick up with the easing of pandemic conditions. Rising
gas prices as also helping drive oil higher as the liquid becomes relatively cheaper for power
generation.

In Local news

Spur posts full-year profit, despite group revenue declining
Improved performance in the second half of the year led to Spur Corporation reporting a rise in
profit for the full-year ended June 30. The group which owns sit-down restaurant brands like Spur,
Panarottis, John Dory’s and the Hussar Grill – as well as fast food and fast causal brand
RocoMamas, saw its headline earnings per share increase by 33.1% to 110.74 cents per share, from
reporting a loss of 82.76 cents per share in the previous year. The JSE-listed company also reported
a 16% rise in profit before income tax, to R148.2 million.

Clicks CEO Vikesh Ramsunder resigns to take up top job in Australia
Vikesh Ramsunder, CEO of SA’s largest pharmacy and health retail group, has resigned and will be
emigrating to Australia to take up a top job at a yet unnamed listed company there. This was
confirmed by Clicks in a JSE Sens advisory to the market and shareholders on Thursday morning.
The group said Ramsunder’s resignation will take effect on December 31, 2021, however, he will
continue as a strategic advisor to Clicks group until August 31, 2022. “Bertina Engelbrecht [58],
currently the group corporate affairs director, has been appointed as CEO from January 1, 2022,”
Clicks added.

International Market Update

– European stocks closed lower on Friday as investors reacted to central bank policy decisions and
monitored developments surrounding China Evergrande Group. The pan-European Stoxx 600
ended down 0.9% with all major bourses and most sectors in negative territory. German business
sentiment fell for the third consecutive month in September, a survey from the country’s IFO
Institute showed on Friday. AstraZeneca was also a top performer on the back of the news that the
pharmaceutical giant had invested in the start-up behind Imperial College London’s experimental
Covid-19 vaccine.

– The S&P 500 and the Dow Jones Industrial Average eked out gains on Friday, wrapping up a volatile
week on Wall Street. Meanwhile Nike validated the fears of investors worried about the pandemic
wreaking havoc with supply chains and raising costs for companies, especially multinationals.

– Shares in Asia-Pacific were higher in early morning trade today, with investors monitoring stocks
related to embattled developer China Evergrande Group. Shares of China Evergrande New Energy
Vehicle Group in Hong Kong plunged around 15% following the firm’s Friday warning that it was in
a “serious shortage of funds.”

In International news

Evergrande: Investors in the dark over $83m bond payment
Investors were left in the dark after troubled property giant Evergrande missed a deadline for a
$83.5m (£61m) interest payment. The Chinese firm is yet to make an announcement regarding the
payment, which was due on Thursday. Earlier in the week, the company said it had struck a deal
over another interest payment worth $35.9m. Global markets have been rocked by concerns over
the firm’s ability to support its more than $300bn of debts.

Huawei’s Meng Wanzhou flies back to China after deal with US
A Chinese technology executive held in Canada on US fraud charges has left the country after a
deal with prosecutors, following years of diplomatic tensions over her fate. Meng Wanzhou, chief
financial officer of Huawei, was detained on fraud charges in December 2018 at the request of the
US. On Friday, the US Department of Justice dropped an extradition request for her. The case
infuriated China and strained relations with the US and Canada. It also prompted accusations that
China had detained Canadian citizens in retaliation, which China denied.