South African Market Overview 26 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 was down 0.16% at 67,585 points, while the Top 40 Index was unchanged at 61,176 points, while technology stocks on the JSE closed higher after recouping some of their losses on Tuesday. South Africa’s largest food producer Tiger Brands was also among the big gainers, rising 4.27% after its half-year results, while hospital operator Mediclinic International closed 4.61% higher after doubling its full-year profit.
  • The South African rand edged lower on Wednesday as the dollar recovered ahead of the release of minutes from the Federal Reserve’s latest meeting. At the close of the day, the rand was trading 0.56% weaker against the dollar at around the R15.74 level.
  • Gold prices were unchanged this morning in the face of rising Treasury yields, after the minutes of the U.S. Federal Reserve meeting, which showed that the central bank is likely to stick to raising interest rates, restored some of the appeal of gold. Oil prices rose early today, continuing a cautious rally this week on signs of tight supply as the European Union (EU) clashes with Hungary over plans to ban imports of Russian oil products, the world’s second-largest crude exporter, following its invasion of Ukraine.

 

In Local News

 

TIGER BRANDS LIMITED – Unaudited consolidated results

Tiger Brands’ performance in the six months ended March 31, 2022 was impacted by a particularly poor first quarter caused by a significant decline in bakery volumes and a protracted strike at Snacks and Treats. Group operating profit (before impairment and non-operating items) decreased by 5% to R1.5 billion. Earnings per share (EPS) from continuing operations decreased 3% to 733 cents (2021: 755 cents), while headline earnings per share (HEPS) from continuing operations decreased 2% to 729 cents (2021: 741 cents).

 

MEDICLINIC INTERNATIONAL PLC – Full Year Results.

Group revenue increased by 8% (10% at constant currency) compared to FY21, driven by growth in customer activity; revenue increased by 5% compared to pre-pandemic levels (9% at constant currency). Group adjusted EBITDA increased by 22% compared to FY21 (24% in constant currency), and the adjusted EBITDA margin improved to 16.1% (FY21: 14.2%); adjusted EBITDA increased by 1% in constant currency compared to FY20 pre-pandemic. Reported profit increased 122% to £151 million (FY21: £68 million) and reported earnings per share increased 122% to 20.5 pence (FY21: 9.2 pence). Total earnings per share 19.0 pence (FY21: 9.6 pence).