South African Market Overview 13 April 2022

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

 

Local Market Update

  • Shares on the Johannesburg Stock Exchange (JSE) slid into negative territory for the second day in a row as stock traders remained concerned about expected inflation figures from the United States. The benchmark All-Share index ended the day down 0.84% at 73,802 points and the blue-chip Top 40 index fell 0.93% to 66,780 points. Commodity stocks gained 0.28%, while industrial and financial stocks fell 3.63% and 2.93%, respectively. On an individual stock basis, Investec was the worst performer in the All-Share Index, down 8.46%.
  • The rand advanced on Tuesday, boosted by strong commodity prices and confidence in the local economy, ignoring expected U.S. inflation data that could support the Federal Reserve’s aggressive policy. Federal Reserve. At the close of trading, the rand was trading at approx. R14.51 against the dollar, or 0.41% firmer. Investors also ignored comments from South Africa’s
    African Reserve Bank (SARB) that rising inflation could derail the country’s economic recovery. The SARB had raised its key interest rate last month, citing risks to the inflation outlook from the war in the Ukraine.
  • Gold prices were unchanged this morning, having gained as much as 1% in the previous session, as government bond yields eased following U.S. inflation data and concerns over the Ukraine conflict supported safe-haven bids, while a firm dollar limited the precious metal’s gains. Oil prices climbed today on fears that falling production in sanctions-hit Russia, the world’s second-largest oil exporter, will tighten supplies after Moscow said peace talks to settle the invasion of Ukraine had reached an impasse. Russian President Vladimir Putin on Tuesday accused Ukraine of derailing peace talks and said Moscow will not let up in what it calls a “special operation” to disarm its western neighbour.

 

In Local News

 

CAPITEC BANK HOLDINGS LIMITED – Audited summary of consolidated financial statements

Operating profit before tax rose 96% to R10.935 billion, from R5.588 billion a year earlier. Earnings per share increased 84% to 7,300 cents per share, from 3,966 cents per share in the previous year. Earnings per share increased 91% to 7,371 cents per share, from 3,850 cents per share in the previous year. The total dividend per share (excluding special dividend) increased by 128% to 3 640 cents per share, from 1 600 cents per share in the previous year. Net asset value (total equity) increased 20% to R35.765 billion, from R29.915 billion in the previous year.

AFRIMAT LIMITED – trading statement

Earnings per share (“EPS”) is expected to be between 542 cents and 586 cents, representing an increase of between 22% and 32% from EPS of 444.1 cents reported for the year ended 28 February 2021; and headline earnings per share (“HEPS”) is expected to be between 526 cents and 570 cents, representing an increase of between 19% and 29% from HEPS of 441.7 cents reported for the year ended 28 February 2021. During the period, the comparative information for the year ended February 2021 was restated due to the final determination of the losses of Nkomati Anthracite Proprietary Limited, resulting in a deferred tax asset at the date of acquisition (measurement period adjustment).