South African Market Overview 3 June 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 JSE yesterday, the All-Share Index closed 0.26% firmer and the Top 40 Index 0.30% higher. Support came mainly from commodity stocks, while financial and industrial stocks traded weaker. The local Resources Index closed 2.5% higher at the end of the day. Financial and industrial stocks fell by 1.94% and 0.27% lower, respectively. Among individual stocks, Montauk Renewables was the best performer of the day, up 16.15 and was the best performer in the all-share index. On the other hand, Steinhoff lost 4.36% yesterday after the company published its interim results for 2022.
  • The rand trended firmer on Thursday, even as the U.S. dollar held its gains against its major peers. At the close of trading, the rand was trading 0.56% firmer at R15.51 to the dollar. The rand took its cue from global markets after sky-high oil prices softened following a report that Saudi Arabia is ready to pump more oil if Russian production declines.
  • Gold prices hit a new monthly high this morning, benefiting from a weaker U.S. dollar that put gold on track for a third straight weekly gain. Oil prices were roughly unchanged today, holding on to gains made in the previous session amid doubts that producers belonging to the OPEC+ member producers will be able to increase their crude oil production sufficiently to compensate for Russia’s supply shortfall. A decision at the of the Organization of Petroleum Exporting Countries and its allies, collectively known as the Thursday’s decision by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, to increase output by 648,000 barrels per day (bpd) in July and August, instead of 432,000 bpd as previously agreed, was seen as barely sufficient for a tight market.

 

In Local News

 

STEINHOFF INVESTMENT HOLDINGS LIMITED – Trading Statement

Management’s review of the financial results for the six months ended March 31, 2022 has indicated that earnings per ordinary share are expected to be between 26 100.00 cents and 27 000.00 cents with a reasonable degree of certainty, compared to 4 941.81 cents in the previous comparative period. Earnings per ordinary share are expected to be between 26 100.00 cents and 27 000.00 cents, compared to 4 890.90 cents in the previous reporting period.

OCEANA GROUP LIMITED – Unaudited interim results.

The group experienced a difficult first half of the year, with revenue down 11% to R3179 million
(March 21: R3 568 million) and a 3.7% lower gross margin of 30.2% (March 21: 33.9%). This was primarily due to lower inventories from last year, which were impacted by the Covid 19 supply chain disruption, civil unrest in Kwa-Zulu Natal, which impacted our SA canned fish sales volumes, and Hurricane Ida in Louisiana, which impacted fishmeal and fish oil production at our U.S. Daybrook operation was adversely affected. Total profit decreased by 50% to R153 million (March 2021: R304 million) and total earnings per share decreased by 51% to 126.4 cents per share (March 2021:
260.5 cents per share).