South African Market Overview 17 June 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 stock market, the Top 40 index rose 2.9% to 61,163 points on Wednesday, while the broader All-Share index gained 2.77% to 67,502 points. Retail stocks were among the gainers, with fashion and grocery retailer Woolworths up 4.06% and largest grocery chain Shoprite up 3.94%, following a 3.4% year-on-year rise in retail sales in April after a revised 1.7% rise in March. The market had expected a 1.6% increase. The local market was closed yesterday for Youth Day. All local prices shown are Wednesday’s closing prices.
  • The rand weakened again against the dollar on Thursday when it traded around R16.01 to the dollar, 1.57% weaker.
  • Gold prices slipped this morning as a higher dollar and rising U.S. Treasury yields weighed on demand for the precious metal and prices headed for their biggest weekly decline since mid-May. Oil prices edged lower this morning as concerns about global economic growth and uncertainty weighed on markets following multiple interest rate hikes this week. The International Energy Agency also warned Wednesday that sky-high oil prices and weakening economic forecasts are clouding future demand prospects. Investors also remained focused on tight supplies after the United States announced new sanctions against Iran.

 

In Local News

 

NASPERS LIMITED – Trade Statement

In a year marked by continued global turmoil and uncertainty that made for a turbulent business environment, fiscal 2022 was a year of progress for Naspers. We remained focused on executing our long-term strategy and delivering strong operational growth in our core segments. Earnings per share are expected to increase between 236% and 243%, driven by a $12.3 billion gain realised from the sale of a 2% stake in Tencent in April 2021. Core adjusted earnings per share for the year are expected to increase by 122 cents to 65 cents per share
(between 15% and 8%).

GROWTHPOINT PROPERTIES LIMITED – Investor Update

Key metrics for our retail and industrial portfolios are showing signs of improvement, although our office portfolio remains under pressure. The overall vacancy rate increased slightly from 10.5% in FY22 to 10.9% at the end of March 2022, but has improved from 11.6% in FY21. Historic above-inflation contractual rent increases combined with a sputtering economy and weak demand, both significantly impacted by the COVID -19 pandemic, have created the perfect storm resulting in continued pressure on rent recoveries. Collections remain above 100%, with rent rebates of R13 million, compared to R11.6 million in HY22 and R197.6 million in FY21.