South African Market Overview 27 January 2022

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

 

Local Market Update

  • Local market stocks rebounded after four consecutive days of losses as investors reacted to the Fed update. The benchmark All-Share index rose 2.05% to 73,797 points, while the blue-chip Top-40 index gained 2.27% to 67,364 points. The broad-based rally, in line with most global markets, was led by commodity and mining companies. Shares of petrochemical company Sasol were among the top performers, rising more than 7%, driven by a rise in crude oil prices.
  • The rand advanced yesterday as global risk appetite improved ahead of the highly anticipated outcome of the U.S. Federal Reserve meeting. However, at the end of the session, the rand weakened by 0.63% to trade around R15.34 against the dollar.
  • Gold prices trended flat today, holding near its weekly low reached in the previous session after the Federal Reserve’s decision to raise interest rates in March drove U.S. Treasury yields and the dollar higher, while uncertainty over Ukraine kept gold’s losses in check. Meanwhile, oil prices fell this morning as investors cashed in their gains from the previous session’s 2% gains after the Federal Reserve hinted at a March rate hike, leading to a technical correction in rising energy markets.

 

In Local News

 

QUILTER PLC – Trading Statement for the Fourth Quarter of 2021.

Quilter plc reports a strong final quarter of 2021 with significantly improved net inflows year-on-year. Assets under management and administration (“AuMA”) of £111.8 billion at the end of December 2021 (+13% compared to December 31, 2020), with growth supported by improved net inflows and positive market performance. Year-to-date net inflows of £4.0 billion (2020: £1.5 billion) representing 4% of opening AuMA (2020: 2%). Fourth quarter net inflows of £1.0 billion (2020: £0.3 billion). Average AuMA, the primary driver of net management fees, of £105.3 billion (2020: £90.2 billion), an increase of 17%.

HARMONY GOLD MINING COMPANY LIMITED – Half-year results in line with guidance. 

Gold production for H1FY22 from the South African operations remains stable at 22,355 kilograms (718,726 ounces) compared to the 22,031 kilograms (708,310 ounces) produced in the previous six month period ended June 30, 2021 (“Comparison Period”). These specific periods are compared as they both included a full six months of production from Mponeng and related assets (“Mponeng”), whereas the six months ended December 31, 2020 (“H1FY21”) only included three months of production from Mponeng. The cost per kilogram rand for the South African operations is broadly in line with the original guidance and remains unchanged at R765.000/kg to R800.000/kg