South African Market Overview 11 May 2022

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


Local Market Update

  • On the Johannesburg Stock Exchange, the Top 40 index closed 0.33% higher, while the All-Share index closed 0.3% higher. Among individual stocks, Transaction Capital was the best performer in the All-Share Index, up 3.96%. On the other side of the index, Montauk Renewables shed 8.21% during the day. Financials gave the market the biggest boost, up 1.71%, while industrials gained 1.15%. Commodity stocks bucked the trend, slipping 1.81%.
  • The rand gained on Tuesday, supported by a recovery in risk appetite globally after a sharp loss on Monday. However, the strength of the U.S. dollar and power outages at troubled state-owned utility Eskom continued to pose risks to the South African currency. At the close of trading, the rand was trading around R16.14 against the dollar, 0.51% firmer. The rand is used by some investors as an indicator of emerging market risk, making it highly vulnerable to mood swings in the global economy.
  • Gold prices fell to a three-month low today as the high dollar continued to pressure gold prices while investors await monthly U.S. inflation data, which will have some influence on the Federal Reserve’s monetary policy stance. Oil prices rose this morning after falling 9% in the previous two sessions. This was due to supply concerns as the European Union sought support for a ban on Russian oil and major producers warned they may have difficulty filling the gap if demand improves.


In Local News

KAAP AGRI LIMITED – Condensed consolidated financial results.

Kaap Agri increased its sales by 26.7% to R7.2 billion, compared to R5.7 billion in the previous comparable financial period, with comparable sales growth of 22.9%. The Group’s sales growth was supported by increased inflation in most categories, with exceptionally high year-on-year inflation in fuels, fertilizers and chemical feedstocks. Sales growth was also driven by a 7.7% increase in the number of transactions. Product inflation, excluding the impact of fuel price inflation, is estimated at 9.2%. EBITDA increased by 13.0% to R398.3 million from R352.4 million in the corresponding period last year.

RAUBEX GROUP LIMITED – Further Trading Statement
Further to the trading statement issued on 28 March 2022 advising shareholders that Raubex expects to report earnings per share and headline earnings per share for the financial year ended 28 February 2022 will be at least 289.4 cents and 286.9 cents respectively, compared to the earnings per share of 87.4 cents and headline earnings per share of 81.9 cents achieved in the previous comparative period. Shareholders are therefore now advised that Raubex expects earnings per share to be between 244% and 254% higher than the earnings per share from the previous comparative period and total earnings per share to be between 258% and 268% higher than the earnings per share in the previous comparable period.