South African Market Overview 24 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 up about 1.2% at 68,367 points, while the Blue Chip Top 40 Index closed up about 1.3% at 61,788 points, driven by mining and commodity companies. The mining index closed up 3.7%, supported by higher gold, silver and platinum prices. Impala Platinum Holdings, Sibanye Stillwater, and Gold Fields rose 6.02%, 4.31%
    3.64%, respectively.
  • The South African rand gained Monday after ratings agency S&P raised its outlook for the country to “positive.” S&P had on Friday raised its outlook to “positive” from “stable” and affirmed its foreign and local currency ratings due to “favourable trading conditions (and) a path to controlled fiscal spending.” At the close of trading, the rand was trading 0.55% firmer at 15.74 rupees to the dollar.
  • Gold prices steadied early today as the U.S. dollar stabilised after a decline in the previous session that drove gold prices to their highest level in two weeks. Oil prices eased in early trading today as concerns about a possible recession and weaker consumption outweighed expectations of tight global supplies and a surge in fuel demand in China following stimulus measures promised by Beijing.
    At the annual Davos Economic Summit, several threats to the global economy topped the list of concerns among the world’s wealthy, with some pointing to the risk of a global recession.


In Local News



Normalised consolidated earnings per share* (HEPS) up 382 cents to 784 cents (1H21
(restated): 401 cents). Group HEPS increases by 394 cents to 756 cents (1H21 (restated): 362 cents).
Normalised HEPS* from continuing operations increases by 178 cents to 465 cents (1H21 (restated): 288 cents). HEPS from continuing operations increases by 197 cents to 447 cents (1H21 (restated): 250 cents). Basic earnings per share of (31.6) cents (1H21 (restated): 366.2 cents). Group sales down 19% to R23.2 billion (1H21 (restated: R28.6 billion). Sales from continuing operations up 13.6% to R18.4 billion (1H21 (restated): R16.2 billion).


In the current period, income includes a net gain on disposal of businesses (51.19% of the
Kian Ann and ESG stores) of approximately R64 million (59 cents per share) and a gain of approximately R396 million (366 cents per share) from the revaluation of the joint venture investments (KKB roll manufacturing and MIH product distribution in the USA and Canada), where the shares were increased to 100%. In the prior comparative period for the year ended March 31, 2021 (the “Prior Comparative Period”), EPS and HEPS included the results of the divested CNH agriculture businesses. This amounted to 85 cents per share for both EPS and HEPS.