South African Market Overview 23 March 2022

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


Local Market Update

  • In the local stock market, gains in mining, banking and technology stocks provided a boost. The Johannesburg All-Share Index rose 1.21%, while the Top-40 Index gained 1.28%. Mining company Anglo American led the Top-40 Index with a 7.62% gain, while Glencore added 4.11% as an Australian ban on alumina and aluminium ore exports to Russia pushed up aluminium prices in London.
  • The rand rose to a five-month high on Tuesday as expectations that the central bank will raise interest rates later this week and portfolio inflows helped it recover from its slump earlier in the day. At the close of trading, the rand was trading around R14.81 against the dollar, 0.78% firmer. Investors around the world braced for more aggressive rate hikes in the U.S. after Federal Reserve Chairman Jerome Powell on Monday hinted at further and faster tightening of monetary policy to tackle high inflation than previously thought.
  • Gold prices fell this morning as U.S. Treasury bond yields rose after the Federal Reserve insisted on tougher rate hikes to fight inflation, although concerns over the Ukraine crisis slowed the decline in gold prices. Oil prices turned higher early today, reversing losses from the previous session, after industry data showed U.S. crude inventories fell last week, underscoring how tight global supplies are amid the impact of economic sanctions against Moscow on Russian production.


In Local News


MERAFE RESOURCES LIMITED – Condensed Consolidated Financial Statements

2021 was a year of recovery for the Glencore Merafe Pooling and Sharing Venture, both from a financial and operational perspective. Improved economic activity contributed to robust demand for ferrochrome, which combined with supply constraints led to a significant increase in prices. This activity also resulted in higher sales volumes, but the impact on revenues was somewhat dampened by a stronger Rand:USD exchange rate. Merafe’s Board of Directors declared a final cash dividend of R549.8 million on March 22, 2022, bringing the total dividend for the year to R724.7 million. Other key factors include a 69% increase in revenue to R8 063 million (2020: R4 780 million) and earnings per share of 67 cents.

ATTACQ LIMITED – Condensed unaudited consolidated interim results.

Distributable earnings per share increased by 33.6% (31 December 2020: decrease of 57.5%). Net asset value per share increased by 7.1% (December 31, 2020: decrease by 26.6%). The Group’s gearing ratio improved to 38.0% (December 31, 2020: 46.3%). COVID -19 rent discounts granted decreased by 84.3% to R8.5 million. Growth in weighted average trade density over 12 months of 8.7% (31 December 2020: decrease of 6.5%) Developments under construction in Waterfall City of 59 395m2 (31 December 2020: 17 283m2). Earnings per share were 70.5 cents, up from 29.3 cents previously