South African Market Overview 10 November 2021

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 slipped, with the Top 40 index down 0.12% to 61,247 points and the broader All-Share index down 0.1% to 67,983 points. Shares in telecoms firm Telkom closed more than 12% lower after the company reported weaker-than-expected results for its mobile business. Local investors will also be watching Finance Minister Enoch Godongwana’s maiden budget statement. Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement (MTBPS), expected on Thursday, which will outline estimated budget deficits and projected economic growth for the next three years.
  • The rand fell back on Tuesday, losing ground it had gained earlier in the week as damaging local power outages were expected to last through the weekend and investors awaited key U.S. inflation data to gauge the Federal Reserve’s next move. At the close, the rand was trading around R15.05 to the dollar, 0.84% weaker. Meanwhile, Andre de Ruyter, CEO of troubled state-owned power utility Eskom, said protracted power outages would be gradually reduced over the course of the week, and would not be restored until Saturday.
  • Oil prices rose this morning, extending their strong gains from the previous day, after industry data showed that USA crude inventories unexpectedly fell last week, while short-term travel demand picked up as pandemic restrictions eased. The decline in global oil inventories has supported crude prices in recent months, and the latest data from the American Petroleum Institute confirms the view that supply remains tight. Gold prices slipped from a two-month high on Wednesday as the dollar’s rise hurt its appeal.

In Local News

Fibre to homes overtakes copper on Telkom network

The number of active fibre connections on Telkom’s network has leapfrogged the number of old copper connections. The company continues to aggressively decommission its copper infrastructure. Telkom said on Tuesday, as part of its interim results for the six months to the endof September 2021, that the number of households connected to fibrehas increased by 54.2% year-on-year to 707 399. The number of households actually connected to this fibre infrastructure rose by 34.3% to 331 735, while the number of households connected to copper lines fell to just 230 817. The total number of fixed broadband subscribers fell to 562 552 at the endof September, down from 637 884 a year earlier.

 

Northam outfoxes Impala Platinum with R17bn Royal Bafokeng deal

In a statement issued by Sens, Waterfall City-based Northam announced that it had on Monday, November 8, entered into a share sale agreement with Royal Bafokeng Holdings Proprietary Limited (RBH) and Royal Bafokeng Investment Holding Company Proprietary Limited. (RBIH) signed a share sale agreement to acquire up to 33.3% of all issued RBPlat ordinary shares. RBIH is a wholly owned subsidiary of RBH. This move comes just two weeks after Implats and RBPlat jointly announced that discussions were underway for Implats to acquire 100% of RBPlat’s issued ordinary shares. RBPlat. “Northam will acquire 93,930,378 RBPlat shares from RBIH, representing 32.8% of the RBPlat net shares, for a total purchase price of [approximately] R17 billion, representing R180,50 per RBPlat share,” the group said in its Sens statement on Tuesday morning.