South African Market Overview 11 January 2022

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

 

Local Market Update

 

  • Local stocks drifted into negative territory yesterday after a strong start to the day. The benchmark All-Share index fell marginally by 0.15% to close at 73,830 points, while the blue-chip Top 40 index slipped 0.2% to 67,114 points. Sibanye Stillwater was the best performer in the Top 40 index, up 4.18%. Richemont lost 3.15% and was the worst performer in the bluechip index. November manufacturing data will be released later today and could provide the best insight into the state of Africa’s most industrialised economy.

     

  • The rand weakened on Monday as the dollar gained as U.S. inflation data later this week will bolster the case for the Federal Reserve to raise interest rates. The rand ended the day R15.66 against the dollar, 0.29% weaker.

     

  • Gold prices were unchanged this morning as markets anticipated a faster rate hike on the back of key U.S. inflation data for December due later this week, while higher bond yields continued to limit gains. Meanwhile, oil prices rebounded today after two days of losses. Risk appetite returned as the market awaited hints from the U.S. Federal Reserve chairman on possible rate hikes and some oil producers continued to struggle to increase production.

 

In Local News

 

Steinhoff seeks listing from Mattress Firm in New York

Steinhoff International announced Monday that its U.S.-based retail chain Mattress Firm has filed an application with the U.S. Securities and Exchange Commission (SEC) to list on the New York Stock Exchange. However, the group said that the number of shares to be offered and their price range have yet to be determined. Mattress Firm is the largest omnichannel mattress retailer in the United States. News of Steinhoff’s plan to list Mattress Firm on the NYSE was also well received by the local market. The JSE share price rose around 8% to R5.39 in morning trading on Monday, before ending the day up 1.8%.

 

CEO buys Prosus shares worth around R155 million

Prosus NV CEO , Bob van Dijk, has bought shares in the company on the open market for about $10 million, the company said in a statement Friday. The CEO’s purchases, which were registered with the Dutch Financial Markets Authority ( AFM), included 122,750 shares acquired at an average price of about 71.90 euros, Prosus said. “The purchase of additional Prosus shares reflects my personal belief that our business has exceptional momentum and that its value is not reflected in the stock at all,” Van Dijk said in a statement.