South African Market Overview 23 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 (JSE), the All-Share Index ended trading down 0.98% at 67,575 points and the blue-chip Top 40 index closed down 1.18% at 60,999 points, mainly due to luxury goods manufacturer Richemont, which is heavily weighted in the indices, although most sectors performed well. Tharisa’s share price gained 6.18% on Friday, making it the best performer in the AllShare index.
  • The South African rand was little changed Friday, holding most of its gains from the previous session after the central bank announced its biggest rate hike in more than six years in an effort to curb inflation. At the close of trading, the rand was trading 0.06% firmer at 15.83 rupees to the dollar.
  • Gold prices hit a more than one-week high this morning as a weakening dollar continued to support gold prices, although higher U.S. Treasury yields limited gains. Oil prices rose in early trade today as U.S. fuel demand, tight supplies and a slightly weaker U.S. dollar supported the market as Shanghai prepares to reopen after a two-month shutdown fueled concerns about a sharp slowdown in growth.

 

In Local News

 

Richemont delivers strong results for fiscal year ended March 31, 2022

Compared to the fiscal year ended March 31, 2021, sales increased 46% at current exchange rates and 44% at constant exchange rates, with double-digit growth across all businesses, regions and distribution channels; growth momentum was led by retail and the Americas. Operating profit more than doubled to 3 390 million euros, with an improved operating margin of 17.7%: Jewellery Houses, with sales growth of 49% at current exchange rates (+47% at constant exchange rates) and an operating margin of 34.3% and an operating margin of 34.3%; Watch Specialists grew by 53% at current exchange rates (+50% at constant exchange rates) and achieved an operating margin of 17.3%.

THE FOSCHINI GROUP LIMITED – Current state of the business

Solid performance in all operating areas continued in the fourth quarter of FY2022 with revenue growth of 23.7% compared to the fourth quarter of FY2021. Another record quarter for TFG Africa in Rand with retail sales growth of 16.1% in the fourth quarter of FY2022 compared to the fourth quarter of FY2021 (like-for-like retail sales growth of 11.5%), indicating further significant market share gains. Strong cash retail sales growth for TFG Africa of 18.0% for the fourth quarter of FY2022 compared to the fourth quarter of FY2021 and 35.9% for the 12 months ending March 31, 2022. Cash retail sales now contribute 71.1% of TFG Africa’s total retail sales.