South African Market Overview 12 April 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 AllShare Index fell 0.47% to 74,426 points and the Top-40 Index fell 0.5% to 67,405 points. Companies operating in the manufacturing sector slipped. The industrial index fell 0.16%, led by pharmaceutical giant Aspen Pharmacare, down 4.19 points, while diversified industrial company Barloworld dropped 1.50% and low-cost clothing and household goods retailer Mr Price fell 1.8%. Meanwhile, data from the domestic statistics agency showed manufacturing output rose 0.2% year-on-year in February, below the forecast of 3.1% and the revised growth of 2.0% in January.


  • The rand advanced on Monday, supported by higher precious metals prices and despite the weaker-than-expected manufacturing numbers. At the close of trading, the rand was R14.58 firmer against the dollar, or 0.59%. Meanwhile, the dollar index rose back above 100 this morning, supported by high U.S. yields ahead of inflation data that is expected to show the strongest U.S. price increase in over 16 years, reinforcing expectations of aggressive Fed tightening policy.


  • Gold prices fell early today as Treasury yields and the dollar rose ahead of U.S. inflation data that could give investors clues about the Federal Reserve’s monetary policy stance. Meanwhile, oil prices rose this morning, reversing sharp losses from the previous day, as the market weighed the possibility of further sanctions on Russia’s energy sector and OPEC warned that it would be impossible to increase output enough to offset the loss of supply. The European Union is working on proposals for an EU oil embargo against Russia in the wake of the invasion of Ukraine, some foreign ministers said Monday


In Local News


PURPLE GROUP LIMITED – Unaudited summary of condensed consolidated results.

Group revenues increased 36.0% to R137 million, while group costs increased 39.7% to R93 million. However, operating costs per invested EasyEquities client decreased by 24.7% to R80 per client compared to the previous corresponding period. Profit attributable to shareholders increased 114.2% to R17.7 million, compared to a profit of R8.3 million in the previous comparative period. EasyEquities revenues increased 27.9% to R108.7 million, although portfolio turnover activity by EasyEquities’ clients returned to normalised levels, in line with pre-COVID levels. revenues increased 98.0% to R25.9 million compared to the same period last year.


The Southern Africa business saw revenue growth of 3-5% year-on-year in H1-2022, while the normalised EBITDA margin for H1-2022 improved to 17%, compared to 16.6% in H1-2021. Continued volume growth across all Alliance Medical Group (AMG) regions has resulted in revenue growth of 1-3% year-on-year for H1-2022 (in Rand terms). The termination of COVID -19 sourced contracts for the UK National Health Service (NHS) has resulted in slower revenue growth as well as a decline in AMG’s normalised EBITDA margin to 21% (from 24.8% in H1-2021). Group revenue increased 3-5% year-on-year in H1-2022.