South African Market Overview 18 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 up 0.7% at 69,696 points and the blue-chip Top 40 index closed up 0.85% at 63,027 points. Although stocks linked to the local economy, such as banks and financials, declined due to weak investor confidence, mining stocks rallied on the rise in platinum and coal prices, giving a boost to the market. Tech investor and largest listed group on the JSE, Naspers, rose 6.7% and its subsidiary Prosus rose 5.8%.
  • The rand trended firmer on Tuesday as a drop in the U.S. dollar provided support despite ongoing power outages clouding growth prospects for the domestic economy. At the close of trading, the rand was trading around R15.91 against the dollar, 1.41% firmer.
  • Gold prices edged higher this morning as a weaker dollar countered pressure from higher Treasury yields and an aggressive stance on inflation by the U.S. Federal Reserve chairman. Meanwhile, oil prices rose more than $1 a barrel in early Asian trading Wednesday on hopes of a rebound in demand in China as the country gradually eases some of its strict COVID -19 curbs. Shanghai reached the long-awaited milestone of three consecutive days without new COVID -19 cases outside quarantine zones on Tuesday, and on Monday submitted plans to end a lockdown that has been in place for more than six weeks.

 

In Local News

 

PICK N PAY STORES LIMITED – Audited condensed consolidated results

Despite the significant negative impact of the July 2021 civil unrest and some ongoing trade restrictions related to the Covid 19 pandemic, the Group delivered a resilient performance throughout the year. Group sales increased by 5.2%, despite an estimated R2.7 billion loss in sales due to numerous store closures as a result of the civil unrest (R1.8 billion) and liquor trade restrictions, particularly in the first half of the year (R0.9 billion). The Group’s trading momentum recovered well after the unrest, with sales growth of 7.4% in the final quarter of the year.

 

QUANTUM FOODS HOLDINGS LIMITED – Operational update and trading statement

Shareholders are hereby advised that for the 6 month period ended 31 March 2022, there is a reasonable degree of certainty that the Company’s earnings per share (“HEPS”) will be between 14.5 cents and 17.1 cents, compared to HEPS of 26.9 cents for the 6 month period ended 31 March 2021, representing a decrease of between 36% and 46%; and earnings per share (“EPS”) for the Company will range from 15.2 cents to 17.8 cents, compared to EPS of 26.9 cents in the prior comparable period, representing a decrease of 34% to 44%. EPS and HEPS for the current reporting period were largely impacted by the outbreak of highly pathogenic avian influenza at the Lemoenkloof layer farm.