South African Market Overview 14 February 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 All-Share Index fell 0.26% to 76,382 points, while the Top-40 Index closed 0.38% weaker at 69,681 points. Bidvest was the best performing stock in the Top-40 Index, up 9.54% after releasing a trading statement on Friday. On the other side of the index, Harmony Gold lost 3.62%. Other news: Figures from Airports Company South Africa (Acsa) show that the airline industry has been slow to recover from travel restrictions imposed by governments around the world over the past two years. In particular, the number of flights taking off and landing at SA airports shows that there has been little improvement in international travel.

     

  • The rand ended the week broadly unchanged as higher-than-expected U.S. inflation prompted more bets on interest rate hikes, sending the dollar higher and the rand weaker. At the close of trading, the rand was trading around R15.22 against the dollar, 0.23% weaker.

     

  • Gold prices held near their three-month high reached in the previous session today as ongoing concerns over Ukraine kept the metal’s safe-haven appeal intact. Oil prices hit their highest level in more than seven years this morning on fears that a possible Russian invasion of Ukraine could trigger sanctions from the U.S. and Europe that would disrupt exports from the world’s largest producer in an already tight market.

 

In Local News

 

THUNGELA RESOURCES LIMITED – Restricted trading statement.

Shareholders are advised that earnings per share (‘EPS’) for the year ending 31 December 2021 (the ‘current period’) is expected to be between R60,32 and R61,27, representing an increase of between R65,63 and R66,58 per share, compared to a loss per share of R5,31 for the year ending 31 December 2020 (the ‘previous period’). Earnings per share for the current period are expected to be between R65,81 and R66,76, an increase of between R71,12 and R72,07 per share compared to a loss per share of R5,31 for the previous period. Total profit for the current period is expected to be between R6.9 billion and R7.0 billion (compared to a total loss of R0.3 billion in the previous period).

 

THE BIDVEST GROUP LIMITED – Trading Statement

Group earnings per share (HEPS) are expected to be between 35% and 40% higher than the previous year (1HFY2021: 594.2 cents), representing a range between 802 cents and 832 cents. HEPS from continuing operations, which excludes the divested Bidvest car rental business, is expected to be between 32% and 37% higher than the prior year (1HFY2021: 601.7 cents), representing a range between 794 cents and 824 cents. Normalised HEPS from continuing operations is expected to be between 28% and 33% higher than last year (1HFY2021: 651.6 cents), corresponding to a normalised HEPS between 834 cents and 867 cents. This metric excludes acquisition costs, amortisation of acquired customer contracts and COVID -19 expenses in the base.