South African Market Overview 12 May 2022

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

 

Local Market Update

  • Stocks on the Johannesburg Stock Exchange traded higher yesterday, with the JSE All-Share Index gaining 2.16%, while the blue-chip Top 40 Index posted a daily gain of 2.36%. Industrials and commodities stocks gave the biggest boost to the overall market, rising 2.09% and 2.64%, respectively. Financial stocks closed 0.47% higher. In terms of individual stock prices, Hosken and Naspers topped the All-Share Index after gaining 8.90% and 7.32%, respectively.
  • The rand trended firmer on Wednesday, but gains were contained as investors awaited monthly U.S. inflation data that could shed light on the Federal Reserve’s monetary policy stance. At the close of trading, the rand was 0.12% firmer against the dollar, trading around the R16.12 level.
  • Gold advanced this morning as the dollar and Treasury yields eased after U.S. consumer price data suggested inflation may have peaked in April. Oil prices eased in early Asian trading today, taking a break after rising more than 5% in the previous session following new Russian sanctions on some European gas companies. The European Union is still haggling over an embargo on Russian oil, which analysts say would further tighten the market and shift trade flows. Unanimity is required for a vote, but it has been delayed as Hungary has entrenched itself in opposition.

 

In Local News

 

NET 1 UEPS TECHNOLOGIES INC. – Reports third quarter 2022 results.

Revenue increased to $35.2 million, up 27% in rand terms and 22% in dollar terms, supported by higher trading revenue. After adjusting for one-time restructuring charges of $5.9 million, Segment Adjusted EBITDA (before corporate/charges) improved to a profit of $0.3 million from a loss of $10.7 million in the comparable quarter, driven by higher sales in our merchant segment and continued execution of cost reduction initiatives. Over $19.2 million (ZAR 300 million) in annualized Project Spring savings targeted in fiscal 2023.

 

FAMOUS BRANDS LIMITED – Trading Statement for the fiscal year ended February 28, 2022.

Our performance has recovered from the worst financial impact of the pandemic, compared to the prior year. Prior year results were negatively impacted by a loss from discontinued operations of R1.1 billion (net of tax). As a result, reported headline earnings per share (HEPS) are expected to increase by 473% to 555% year-on-year and reported basic earnings per share (BEPS) (including discontinued operations) by 123% to 128% year-on-year. HEPS from continuing operations is expected to be in the range of 320 cents to 392 cents and BEPS in the range of 285 cents to 349 cents.