South African Market Overview 16 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 Friday, two major indices rose on the Johannesburg Stock Exchange. The All-Share Index gained 2.08% and the Top-40 Index closed 2.23% higher. Market attention this week is focused on the South African Reserve Bank’s monetary policy decision, which will be announced on Thursday. A Reuters poll released Friday predicts the bank will raise the policy rate by 50 basis points to 4.75% for the first time in more than six years to avoid possible second-round effects from higher consumer prices.
  • The rand slipped on Friday, on track for a weekly loss of nearly 1% against the dollar amid global economic uncertainty related to monetary tightening and the war in Ukraine. At the close of trading, the rand was trading around R16.16 against the dollar, 0.34% weaker. Last week, the rand mainly followed global factors. Domestically, power outages at the troubled state-owned utility Eskom and rising COVID -19 infections clouded the outlook for economic growth.
  • Oil prices eased this morning, giving back earlier gains as investors took profits after a surge in the previous session, but global supply fears loomed as the European Union prepared to impose an import ban on Russia. Meanwhile, gold prices rebounded this morning from a more than three-month low reached in the previous session as lower U.S. Treasury yields kept demand for zero-yielding gold above the key psychological support level of around $1,800 per ounce. Gold fell more than 1% on Friday to its lowestlevel since Feb. 4, marking the fourth consecutive weekly decline.

 

In Local News

 

ADCORP HOLDINGS LIMITED – Trading Statement and Operational Update

Adcorp hereby announces that with reasonable certainty for the year ended 28.
February 2022 earnings per share (“HEPS”) of at least 47.5 cents is expected, compared to earnings per share of 34.2 cents expected for the year ended 28 February 2021, representing an increase of at least 139%. Earnings per share (“EPS”) is expected to increase by at least 55.9 cents compared to EPS of 35.6 cents reported for the year ended February 28, 2021, an increase of at least 157%.

EASTERN PLATINUM LIMITED – First Quarter 2022 Results Report

Revenue for the first quarter of 2022 increased to $17.4 million (Q1 2021 – $16.7 million), representing an increase of 4.3%.
Increase. The increase in Q1 2022 revenue was primarily due to an increase in Platinum Group Metals (“PGM”) sales during the period. Mine operating income increased by $2.0 million (or 137.5%) to $3.4 million in Q1 2022 (Q1 2021 – $1.4 million), resulting in an improved gross margin of 19.6% in Q1 2022 compared to 8.6% in Q1 2021. Operating income was $0.1 million in Q1 2022 compared to an operating loss of $1.7 million in Q1 2021. Net income attributable to shareholders was $3.0 million ($0.02 earnings per share) in Q1 2022 compared to a loss attributable to shareholders of $0.9 million ($0.01 loss per share) in Q1 2021.