South African Market Overview 17 March 2022

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

 

Local Market Update

  • Stocks on the Johannesburg Stock Exchange soared on Wednesday, with major indices posting their biggest one-day gain of more than 4%, last recorded in November 2020. The market benefited mainly from a massive rise in index heavyweights Naspers and its foreign subsidiary Prosus NV. The JSE was further boosted by a solid rise in banking stocks. The benchmark all-share index closed up 4.04% at 73,484 points and the top 40 blue-chip index closed up 4.17% at 66,972 points.
  • The rand gained on Wednesday as investors awaited the outcome of the Federal Reserve meeting and possible peace talks between Russia and Ukraine. At the close of trading, the rand was R14.93 firmer against the dollar, or 1.11%. However, investors were cautious ahead of the Fed’s interest rate decision, with the Ukraine war and China’s rising COVID -19 cases providing the backdrop.
  • Gold prices were unchanged this morning, hovering near a three-week low reached in the previous session, after the Fed’s rate hike pushed up government bond yields and peace talks between Russia and Ukraine also hurt gold’s appeal. Oil prices rose in early trading this morning, recouping some of the previous day’s losses after the International Energy Agency (IEA) said that a drop in oil demand due to higher prices would not offset the disruption in Russian oil supplies.

In Local News

GROWTHPOINT PROPERTIES LIMITED – Group Interim Summarised Audited Results

Total sales decreased by 4.8% to R6.38 billion, compared to R6.70 billion in the same period of the previous year. Operating profit decreased by 4.3% to R4.24 billion compared to R4.43 billion in the comparative period. Earnings per share decreased by 23.4% to 56.55 cents compared to 73.84 cents in the comparative period. SA REIT FFO increased by 17.4% to 77.40 cents per share compared to 65.90 cents in the comparative period. Dividend per share increased 5.1% to 61.50 cents compared to 58.50 cents in the comparative period. Earnings per share increased to 107.23 cents compared to a loss of 42.24 cents in the comparative period. Net asset value per share increased 6.2% to 2,148 cents, compared to 2,023 cents at June 30, 2021

 

RAND MERCHANT INVESTMENT HOLDINGS LIMITED – Unaudited summary of results.

The announcement on 20 September 2021 that RMI intends to demerge its interests in Discovery Limited (Discovery) and Momentum Metropolitan Holdings Limited (Momentum Metropolitan), and the announcement on 8 December 2021 in relation to the sale of the group’s 30% interest in Hastings Group (Consolidated) Limited (Hastings) for R14.6 billion, have resulted in significant value creation for shareholders. Normalised profit decreases by 6% to R1 922 million (2020: R2 048 million). Total profit increases by 6% to R1 680 million (2020: R1 591 million). Ordinary and special dividend increased by more than 100% to 165.5 cents per share (2020: 22.5 cents per share).