South African Market Overview 20 January 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 traded higher yesterday, with the JSE All Share Index up 1.63% on the day, while the blue-chip Top 40 Index rose 1.8%. Data from the South African Bureau of Statistics showed that annual consumer inflation accelerated to 5.9% last month from 5.5% in November, approaching the upper limit of the South African Reserve Bank’s (SARB) target range of 3%-6%. Another release from the statistics office showed retail sales rose 3.3% year-on-year in November, also above forecasts. A Reuters poll predicted that the SARB will raise the repo rate by another 25 basis points to 4.00% at its first monetary policy meeting in 2022.
  • The rand gained on Wednesday as inflation rose faster than expected in December, arguing for a rate hike by the central bank next week. At the close of trading, the rand was trading around R15.34 against the dollar, 1.16% firmer.
  • Gold prices stabilised this morning near a two-month high reached in the previous session. Higher U.S. Treasury yields prevented further gains, as developments at next week’s Federal Reserve meeting should be viewed with caution. Meanwhile, oil prices eased again today after reaching their highest level since 2014 in the previous session due to strong demand and short-term supply disruptions.

 

In Local News

 

Richemont posts over 30% sales growth in three months to December

JSE-listed Richemont has surpassed pre-pandemic sales levels in all business regions in the three months to December 31, 2021, supported by a strong performance in its US and European businesses. The company reported a 32% jump in sales compared to the third quarter ending December 2020, at constant exchange rates. The owner of the Cartier luxury jewellery brand reported double-digit sales growth across all regions, distribution channels and business units, resulting in healthy net cash of €4.9 billion (approximately R85.9 billion), compared to €2.9 billion in the same quarter of 2020.

Karooooo announces unaudited financial results for the third quarter of 2022

Karooooo, which is wholly owned by Cartrack, yesterday announced results for the third quarter of its fiscal year 2022 (“2022”), which ended November 30, 2021. Strong subscriber growth momentum continues. Despite the continued impact of the global pandemic, the business model increased the number of new customers and grew the total number of subscribers (connected vehicles or other assets on the platform). As of November 2021, the Group had a total of 1,470,385 subscribers, an increase of 18% (Q3 2021: 1,246,089). In the nine months ended November 30, 2021, the Group added 164,385 net new subscribers, an increase of 37% (nine months ended November 30, 2020: 119,574). Total revenue increased 22% to ZAR720 million (Q3 2021: ZAR589 million). Meanwhile, earnings per share increased 10% to ZAR 4.72 (Q3 2021: ZAR 4.30).