South African Market Overview 11 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 was trading higher yesterday. The JSE All Share Index rose 1.66%, while the Top 40 Index gained 1.64%. Commodity and financial stocks gave the market the biggest boost as the local J210 and J212 indices closed higher by 2.29% and 2.23%, respectively. Among individual stocks, Astral Foods was the best performer in the all-share, up 12.21%, followed by a number of mining companies.
  • The rand weakened early Thursday as gold prices slipped on renewed risk appetite, while investors feared that rotating power outages in the resource-rich country could derail the economic recovery. At the close of trading, the rand was trading around R15.05 against the dollar, 0.24% weaker.
  • Gold prices were on track for a second weekly advance as talks between Russia and Ukraine made little progress, although gold prices were down this morning as higher U.S. Treasury yields on inflation data diminished the safe haven’s appeal. Oil prices recovered some losses early today, but were on track for their biggest weekly declines since November after swinging back and forth on fears of escalating bans on Russian oil versus efforts to bring more oil from other major producers to market.

In Local News

 

SANLAM LIMITED – Audited Annual Results

Operating profit returned to pre-pandemic levels. Net income from financial services increased 13% in 2020 (18% in constant currency) and was 4% higher than in 2019, excluding non-recurring items. New business volumes exceeded R350 billion for the first time, up 14% compared to 2020 and 43% compared to 2019, with volume growth underpinned by strong profitability and margins. Net value of new business covered (VNB) increased by 44% compared to 2020 and by 21% compared to 2019, with a new business margin of 2.87%. Net customer cash flow improved significantly despite the increase in mortality claims. Net inflows of R78.3 billion were 27% higher than 2020 and 38% higher than 2019.

 

CAXTON AND CTP PUB. & PRINTERS – Unaudited Preliminary Group Results

Revenue increased by R333.2 million (12.3%) and exceeded R3 billion for the six months as most businesses experienced improved demand. Inflationary pressures began to impact this reporting period and intensified towards the end with personnel and other operating expenses increasing by 8.7% (R48.9 million) and 9.2% (R44.5 million) respectively. The Group’s profit after tax amounts to R40.4 million, representing earnings per share of 63.9 cents (2020: 108.5 cents) and earnings per share of 66.5 cents, representing a growth of 80.8% compared to the previous year (36.8 cents).