South African Market Overview 30 May 2022

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

 

Local Market Update

  • Johannesburg-listed stocks closed higher, with the All-Share Index up 1.4% and the Top 40 Index also up 1.4%. There was relatively little South African economic data last week, and the rand was often at the mercy of movements in global markets. This week has been busier on the domestic data front with releases such as the April fiscal balance, first-quarter unemployment figures and the purchasing managers’ index for the overall economy.
  • The rand gained on Friday, while the dollar declined for the second straight week as traders scaled back expectations for a Federal Reserve rate hike. At the close of the day, the rand was trading around the R15.59 level, up 0.58%.
  • Gold prices gained in choppy trading this morning as a weakening dollar boosted dollar-denominated gold prices, although gains were limited by some investors turning to riskier assets in Asia. Meanwhile, oil prices rose to a two-month high today as traders waited to see if the Traders were waiting to see if the European Union would agree to ban Russian oil ahead of a meeting on a sixth package of sanctions against Moscow over its invasion of Ukraine. The EU will meet today and tomorrow to discuss a sixth package of sanctions against Russia over its invasion of Ukraine, which Moscow calls a “special operation” to disarm its neighbour.

 

In Local News

 

PEPKOR HOLDINGS LIMITED – Interim Results

Despite a high baseline in the comparative period, Pepkor posted another commendable performance for the six-month period ending March 31, 2022 (the period). Revenue growth was muted and impacted by a high baseline and a change in product mix in the Flash business. However, revenue growth strengthened in the second quarter. On a comparable two-year basis (compared to the six months ended March 31, 2020), the Group achieved exceptional revenue growth of 15.4%. This was supported by significant market share gains in various product categories. Profitability remained strong with earnings per share (HEPS) up 28.3% to 91.5 cents.

HOSKEN CONSOLIDATED INVESTMENTS LIMITED – Updated trading statement.

Shareholders are referred to the Company’s previous trading statements on SENS dated 25 and 26.
May 2022. The Company wishes to revise its previous guidance to indicate that it is reasonably certain that for the year ending March 31, 2022, basic earnings per share of between 2,444.1 cents and 2,697.1 cents, compared to an adjusted loss per share of 1,265.1 cents in the prior year. The company expects total earnings (profit) per share of between 1 292.5 cents and 1 350.0 cents, compared with earnings per share per share of 287.7 cents for the previous year.