South African Market Overview 31 May 2022

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

 

Local Market Update

  • In the local stock market, stocks rose in tandem with global equity markets, buoyed by hopes that China’s hubs of Beijing and Shanghai will be freed from viral restrictions, and the Shanghai government has released a package of economic stimulus measures. China is South Africa’s largest trading partner. The Johannesburg All-Share index climbed 2.09% to 71,958 points, while the Top40 index closed 2.27% higher at 65,335 points. Among the gainers was shipping company Grindrod, which gained 7.24% to R8.30 after announcing late last week that it had sold Grindrod Bank to the African Bank had sold.
  • The rand gained on Monday as the U.S. dollar weakened, with a series of local economic data expected in the coming days that could shed light on the state of the economy. At the close of the day, the rand was trading 0.61% firmer at 15.49 rupees per dollar.
  • Oil prices jumped after EU leaders agreed late Monday to ban 90% of Russian crude by the end of the year. The agreement broke a deadlock after Hungary initially held up talks. Hungary is a major buyer of Russian oil, and Hungarian Prime Minister Viktor Orban has friendly relations with Russia’s Vladimir Putin. The embargo is part of the European Union’s sixth package of sanctions against Russia since its invasion of Ukraine. Talks on imposing an oil embargo have been ongoing since the beginning of the month. Gold prices fell Tuesday as a higher dollar and rising U.S. Gold prices fell on Tuesday as a higher dollar and rising U.S. Treasury yields weighed on demand for the precious metal, which posted its second straight monthly loss for the first time since March 2021.

 

In Local News

 

MOMENTUM METROPOLITAN HOLDINGS LIMITED – Operational Update

Momentum Metropolitan saw a strong recovery in normalised total revenues despite the challenging economic environment. The group generated a normalised profit of R2 588 million for the nine months ended March 31, 2022, 46% higher than the same period last year.
This profit growth was supported by the lower impact of Covid-19 on earnings, particularly at Momentum Corporate, which experienced a significant turnaround. Earnings per share increased 59% from 99.7 cents to 158.3 cents and earnings per share improved 6% from 108.0 cents to 114.0 cents.

 

ADCORP HOLDINGS LIMITED – Condensed audited consolidated results.

Revenue from continuing operations decreased by 1.7% to R11.5 billion (2021: R11.7 billion). Gross profit from continuing operations increased by 7.0% to R1.2 billion (2021: R1.1 billion) Operating profit from continuing operations before finance income and costs increased by 68.2% to R199 million (2021: R118 million). Cash flow from operating activities of R260 million (2021: R914 million). Total earnings per share increased by 206.5% to 109.1 cents per share (2021: 35.6 cents per share). Total earnings per share increased 190.6% to 99.4 cents per share (2021: 34.2 cents per share). Declared dividend increased to 47.0 cents per share (2021: Zero).