South African Market Overview 1 June 2022

Sharing our Daily Market Overview with you, ensuring that you do not miss out on any important market changes!

 

Local Market Update

  • Shares on the Johannesburg Stock Exchange (JSE) rose Tuesday, supported by local banking stocks, industrials and property companies, while major global indexes fell on inflation concerns. The benchmark All-Share Index rose 0.19% to 72,095 points, and the Top 40 blue-chip index closed 0.15% higher at 65,431 points. Data on Tuesday showed South Africa posted a trade surplus of 15.49 billion rand in April, up from a revised surplus of 47.20 billion rand in March. The unemployment rate fell to 34.5% in the first quarter of 2022 from 35.3% in the final quarter of last year. Other data showed that private sector credit in South Africa rose 5.99% year-on-year in April after increasing 5.92% in March.
  • The rand weakened on Tuesday as the dollar rebounded on safe-haven demand amid ongoing inflation concerns. At the close of trading, the rand was trading around R15.67 to the dollar, 1.12% weaker.
  • Gold prices hit their lowest levels in nearly two weeks this morning, although they traded in a narrow range as safe-haven demand for gold helped offset continued pressure from a firmer dollar and higher U.S. Treasury yields. Oil prices rose in early Asian trading today after leaders of European Union leaders agreed on a partial and gradual ban on Russian oil, and China ended its COVID -19 freeze in Shanghai. EU leaders agreed in principle to halt 90% of oil imports from Russia by the end of this year. This is the EU’s toughest sanction yet against Moscow since its invasion of Ukraine three months ago, which Moscow calls a “special military operation.”

 

In Local News

 

REINET INVESTMENTS SCA – Consolidated and Audited Financial Results

Reinet’s net asset value of EUR 5.9 billion reflects an average growth rate of 9.7 percent per year in euros since March 2009, including dividends paid. The net asset value as of 31 March 2022 reflects an increase of EUR 506 million, or 9.4 percent, compared with EUR 5,384 million. Net asset value per share as of March 31, 2022: EUR 31.99 (March 31, 2021: EUR 29.21). Fifth share buyback programme: repurchase of 174,021 ordinary shares as of March 31, 2022, at a cost of approximately EUR 3.5 million. During the year, commitments of EUR 343 million were made for new and existing investments and a total of EUR 248 million was financed.

 

FAMOUS BRANDS LIMITED – Summarised results.

Total revenue increased by 38% to R6 476 million (2021: R4 684 million), in line with 2020 revenue of R6 495 million. Operating profit increased by 428% to R6 630 million (2021: R119 million), and earnings per share increased by 568% to 356 cents (2021: 53 cents).
Compared to 2020, operating profit decreased by 31% (2020: R912 million), and total comprehensive income decreased by 24%. Total debt at 28 February 2022 was R1 138 million (2021: R1 471 million), and Famous Brands repaid R358 million in borrowings in 2022. Available credit facilities totaled R2 050 million at February 28, 2022. The Group’s gearing ratio improved by 58% from 3.75 times to 1.56 times.