South African Market Overview 19 April 2022

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

 

Local Market Update

  • Shares on the Johannesburg Stock Exchange (JSE) closed higher Thursday ahead of the long weekend. The blue-chip Top 40 index gained 0.43%, while the broader All-Share index closed 0.35% firmer. Industrial stocks posted the biggest gain, up 0.80%. Commodity stocks gained 0.52%, while financials closed 0.49% lower. Other news: South Africa’s state-owned power utility Eskom said on
    Sunday that it would implement “Stage 2” power cuts by Wednesday to replenish its emergency power reserves.
  • The rand traded unchanged yesterday as international markets were closed for the long weekend. Yesterday, the rand closed at R14.6253 against the dollar, unchanged. So far this year, the rand is trading 7.88% firmer against the dollar.
  • Gold prices stabilised this morning after coming within a stone’s throw of the key $2,000 per ounce level in the previous session, as lower U.S. Treasury yields offset pressure from the dollar’s two-year peak. Oil prices rose this morning as investors worried about tight global supplies afterLibya was forced to halt some exports, and as Shanghai factories prepared to reopen after a COVID-19 reopening, which eased some demand concerns. Gains were limited as the dollar traded at a new two-year high. A stronger dollar hurts oil buyers holding other currencies.

 

In Local News

 

MEDICLINIC INTERNATIONAL PLC – Full Year 2022 Financials

Group revenue growth of around 8% in the year and improved Group EBITDA margin of around 16.0% (FY21: 14.2%). Recovery in profitability and strong cash conversion leading to significant reduction in leverage. We expect positive momentum in customer activity to drive revenue growth and margins in the coming year. Dr. Ronnie van der Merwe, Group Chief Executive Officer, said:
“The Group has delivered a strong operational and financial performance this year. We have successfully navigated further waves of COVID -19 and delivered FY22 results in line with our improved outlook.”

 

GRINDROD LIMITED – trading update

Grindrod’s core businesses continued the positive momentum of FY2021 with strong performance in the first quarter of FY2022 (“Period”). Supported by favourable commodity demand, ports and terminals posted solid performance with port volumes up 11% over the prior period and dry bulk terminal volumes up 48% over the prior period. Coastal Shipping¬†and Clearing and Forwarding businesses in the Logistics segment delivered another robust performance in the quarter, with profits up 39% compared to the same period last year. The businesses continued to benefit from the recovery of maritime trade to pre-pandemic levels. The bank’s earnings were 9% higher than in the same period of the previous year despite a high liquidity surplus