South African Market Overview 4 April 2022

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

 

Local Market Update

  • The Johannesburg Stock Exchange All-Share Index closed 0.54% higher at 75,908, while the blue-chip Top 40 Index closed 0.62% higher at 68,935. Gains were led by energy companies and technology investor Naspers and its company Prosus. Northam Platinum fell the most in the Top 40 index, down 3.1%, after the company reported a rise in half-year profits and its CEO said a minority stake in a company whose takeover had failed gave it a “position of strength.”
  • The rand weakened against a stronger dollar on Friday as accelerating wage growth in the United States and lack of progress in peace talks between Russia and Ukraine dampened appetite for risky assets. At the close of trading, the rand was unchanged at R14.61 to the dollar. The dollar started the week firm as government bond yields rose in anticipation of quick rate hikes in the U.S., while rumours of a ban on Russian gas kept the euro within sight of its 2022 low.
  • Gold prices were flat early today as the U.S. dollar and yields rallied after strong labour market data raised expectations of aggressive rate hikes, erasing support from safe-haven demand fueled by the deepening Ukraine crisis. Meanwhile, oil prices extended losses today as investors awaited the release of stockpiles from strategic reserves by consuming countries, while a ceasefire in Yemen could ease concerns about supply disruptions in the Middle East. The United Nations brokered a two-month cease-fire between a Saudi-led coalition and the Iran-allied Houthi group for the first time in the seven-year conflict.

In Local News

 

PIC disapproves of appointment of new CEO of Absa

Africa’s largest fund manager, the Public Investment Corporation (PIC), has expressed its “utter disappointment” with the Absa board’s decision to appoint Arrie Rautenbach as its new CEO. In a statement released Friday, the PIC noted that in appointing Rautenbach, Absa missed an opportunity to demonstrate its commitment to transforming the group and promoting diversity, inclusivity and racial and gender equality in the group’s highest positions. “The PIC would have expected the board to have placed the necessary emphasis on transformation when hiring a new CEO,” it says in the PIC.

 

Transnet opens freight rail network to private operators

South Africa’s state-owned rail company Transnet on Friday invited bids from the private sector to operate parts of its freight network in a bid to get a cash injection to improve the service. Transnet, whose rail infrastructure is underperforming after years of inadequate investment, widespread theft of copper cables and vandalism, will seek bids from April 1 to May 31, the company said. Transnet’s total rail freight volumes fell nearly 14% from 212.3 million tonnes in 2020 to 183.29 million tonnes last year, the worst performance in a decade, company records show.