South African Market Overview 25 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), both the All-Share Index and the Blue Chip Top 40 Index closed down about 1% at 67,691 and 61,177 points, respectively, weighed down by tech companies. Tech stocks, including index heavyweight Naspers, closed down over 6.7%, while subsidiary Prosus NV closed down over 6%. A South African economic indicator released Tuesday morning rose 0.5% month-on-month in March, up from 3% in February, in an otherwise weak week for domestic data, according to central bank statistics.
  • The South African rand gained Tuesday despite fears of a slowdown in the global economic recovery, as the U.S. dollar was weak and prices for gold, a key export for the country, rose. At the close of trading, the rand was trading around R15.65 against the dollar, 0.55% firmer.
  • Gold prices eased slightly this morning, falling from the two-week high reached in the previous session, as the dollar regained some ground, but uncertainty about the path of inflation supported the safe-haven gold outlook. Oil prices rose in early trading today, boosted by tight supplies and the prospect of rising demand due to the upcoming start of the summer driving season in the US.
    France’s new foreign minister said Tuesday she was optimistic that opponents of a new EU sanctions package that would cut off Russian oil imports to the EU could be convinced and that the EU would reach an agreement that would tighten global supplies.

 

In Local News

 

BYTES TECHNOLOGY GROUP PLC – Audited Preliminary Results

Gross billed revenues increased by 26.1% to £1,208.1 million (FY21: £958.1 million), with growth spread across all business lines – software, hardware and services – as demand from enterprise customers increased alongside continued growth from public sector customers. Revenue increased by 13.8% to £447.9 million (FY21: £393.6 million). Gross profit growth of 19.9% to £107.4 million (FY21: £89.6 million) reflects strong customer acquisition trends in both the public and private sectors and increasing gross profit per customer. Gross margin has increased to 24.0% (FY21: 22.8%) as gross profit growth outpaced revenue growth.

 

DATATEC LIMITED – Preliminary audited results for the fiscal year ended February 28, 2022.

From an operational perspective, the Corporation delivered a strong performance in the year ended February 28, 2022.
Datatec delivered a strong performance in the year ended February 28, 2022 (“FY22”) as it continued to benefit from the growing trends in networking, cloud adoption and cybersecurity. Datatec’s positioning enabled all business units to deliver robust revenue and profit growth. Group revenue was $4.6 billion in FY22, up 12.8% from $4.1 billion in FY21 (at constant exchange rates, Group revenue increased 11.8%). The Group’s gross margin was 16.6% in FY22, compared with 16.8% in FY21, and gross profit was US$770.4 million
(FY21: US$690.5 million). Total operating expenses were US$615.9 million (FY21: US$571.9 million).