South African Market Overview 3 February 2022

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

 

Local Market Update

  • Local stocks rose for a third straight session as a string of promising trading statements from some South African companies boosted prices. The benchmark All-Share index rose 0.4% to 75,190 points and the blue-chip Top 40 index closed 0.41% higher at 68,655 points. On an individual stock basis, Shoprite was the best performer in the Top 40, up 4.17%, while the flip side was MTN, down 3.47%.
  • The rand weakened on Wednesday as risks to the domestic economy resurfaced when power utility Eskom announced it would cut off electricity supply from Wednesday to Monday. At the close of trading, the rand was trading 0.64% weaker at R15.35 to the dollar. Eskom said that of its approximately 46,000 megawatts (MW) of rated capacity, nearly 15,000 MW were off the grid due to breakdowns and 4,435 MW due to a backlog of scheduled repairs.
  • Oil prices eased this morning after weak U.S. jobs data and some profit-taking, but remained supported by tight supply as OPEC + producers stuck to planned moderate production increases. Gold prices traded little changed above the key $1,800 per ounce level on Thursday as U.S. government bond yields eased after a drop in U.S. jobs data. Investors are now focused on the European Central Bank and Bank of England meetings later today for clues on the pace of monetary tightening amid rising inflation.

 

In Local News

 

ASTRAL FOODS LIMITED – General Trading Update.

Astral’s earnings per share (“EPS”) and total earnings per share (“HEPS”) for the six months ended 31 March 2022 (the “Interim Period”) are expected to be at least 100% higher than the comparative period ended 31 March 2021 (the “Comparative Period”), which reported EPS of 592 cents per share and HEPS of 597 cents per share. EPS will be at least 1,184 cents per share and HEPS will be at least 1,194 per share for the Interim Period. Results for the comparative period were negatively impacted by the Covid 19-related closures, which impacted the South African economy and resulted in constrained consumer spending.

 

KAP INDUSTRIAL HOLDINGS LIMITED – Updated Trading Statement

From continuing operations, HEPS will be between 36.0 cents and 38.4 cents, representing an increase of between 57% and 67% from HEPS of 23.0 cents in the previous comparative period; and EPS will be between 36.3 cents and 38.7 cents, representing an increase of between 49% and 59% from EPS of 24.4 cents in the previous comparative period. From continuing and discontinued operations, HEPS will be between 36.5 cents and 38.5 cents, an increase of between 77% and 87% from HEPS of 20.6 cents in the previous comparable period. EPS will be between 36.2 cents and 38.4 cents, representing an increase between 64% and 74% compared to EPS of 22.1 cents in the previous comparative period.