South African Market Overview 13 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 All-Share Index closed 1.7% weaker, while the Top 40 Index was down 1.85%. Gold and platinum mining stocks were the biggest drag on the bourse, while bullion and other precious metals fell, with palladium losing more than 6% as investors fled to the dollar in droves on bets that the Federal Reserve will stick to aggressive rate hikes. Mining output fell more than expected in March, and manufacturing output fell 0.8% in March from a year earlier, compared with an expected 0.9% decline. South Africa’s daily reported COVID infections exceeded 10,000 on Wednesday for the first time since January.
  • The rand stabilised Thursday, holding steady despite a strong dollar, weak economic data and a rise in COVID -19 infections locally. At the close of trading, the rand was 0.05% firmer at R16.11 against the dollar.
  • Gold prices were held near a three-month low this morning as the strongest dollar in two decades continued to dampen demand for the green star precious metal. Oil prices firmed in early trading today, but headed for their first weekly losses in three weeks as concerns about inflation and Chinese COVID blockages slowing global growth outweighed worries about dwindling fuel supplies from Russia.
    The market continues to be pulled back and forth by the prospect of a European Union ban on Russian oil.
    The prospect of a European Union ban on Russian oil tightening supply and concerns that weaker global growth, inflation and China’s COVID.


In Local News


SAPPI LIMITED – Second Quarter Results to March 2022

The Group generated EBITDA excluding special items of $337 million, which was three times higher than the previous year. Tight global paper markets were the main factor behind the quarter’s success, enabling the Group to push through higher selling prices that offset exceptional cost inflation. Earnings per share excluding special items for the quarter were 35 U.S. cents, a further improvement on the 20 U.S. cents in the previous quarter and illustrating the Group’s steadily improving profitability.


Shareholders and bondholders are advised that Redefine has declared distributable earnings per share (‘DIPS’) for HY2022 to 26.33 cents per share, an increase of 0.6% over the DIPS for the six months ended February 28, 2021 of 26.18 cents per share (”prior comparative period”). As Redefine uses dividend per share (‘DPS’) as the relevant measure of financial performance for trading statement purposes, the Company is required to publish a trading statement once it is reasonably certain that the dividend per share for the next reporting period will differ by at least 15% from the previous comparative period.