South African Market Overview 10 March 2022

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

 

Local Market Update

  • The Johannesburg Stock Exchange posted its first positive net inflow in three and a half years in February. The benchmark All-Share Index closed up 0.4% at 72,685 points after four days of losses. The blue-chip Top 40 index closed up 0.28% at 66,485 points. The yield on the benchmark 2030 government bond fell 38.5 basis points to 9.875% as emerging market investors shifted money out of Russian assets.
  • The rand advanced on Wednesday, boosted by higher commodity prices and in line with a rebound in most emerging market equities and currencies, spurred by hopes for a negotiated end to the conflict between Russia and Ukraine. At the close of trading, the rand was trading 1.36% firmer at R15.01 to the dollar. South Africa’s higher exposure to commodities, including gold, platinum and palladium, helped limit the rand’s losses.
  • Oil prices rallied early today after the United Arab Emirates said it would abide by a pact among major producers to supply an extra 400,000 barrels a day a month, hours after the UAE’s ambassador to Washington said his country favoured a bigger increase. Meanwhile, gold prices fell on Thursday as U.S. Treasury yields rose and investors opted for riskier assets.

 

In Local News

 

MTN GROUP LIMITED – Summary of audited consolidated financial statements

Group service revenue increased 1.0% (18.3%*), while Group data revenue increased 16.0% (36.5%*) and Group fintech revenue increased 17.4% (30.9%*). EBITDA (before non-recurring items) grew by 5.3% (23.7%*). EBITDA margin (before one-time items) increased by 1.7 percentage points (pp) to 44.5% (up 2.2 pp* to 44.5%*). Reported earnings per share (HEPS) at 987 cps, up 31.8%; non-operating items reduced HEPS by 123 cps. Holding company (Holdco) net debt down to R30.1 billion from R43.3 billion; leverage improved to 1.0x from 2.2x in December 2020. Return on equity (ROE) improved by 2.6 percentage points to 19.6%.

 

NEDBANK GROUP LIMITED – Results

Nedbank Group’s financial results for 2021 reflect a strong recovery from a low base in 2020. Total income (HE) increased 115% to R11.7 billion in 2021, but is still 7% below 2019 levels. HE Growth was driven by significantly lower impairments, a higher net interest margin, a recovery in NIR growth, disciplined cost management and stronger financial performance from our investment in ETI. Key drivers of shareholder value creation were also positive, with net asset value per share up 11%, ROE improving to 12.5% (2020: 6.2%) and full year dividends of 1,191 cents per share at 2.02 times cover.