South African Market Overview 4 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 closed lower yesterday as the JSE All Share Index posted a loss of 0.22%, driven by a decline in industrials. The Top 40 index closed 0.28% lower than at the end of the session. Among individual stocks, Aspen Pharmacare was the worst performing stock in the Top 40 for the day, down 4.19%. In other news: South African private sector activity rose slightly in January as the Omicron wave of Covid 19 cases subsided, boosting demand and stabilising new business, a survey showed Thursday.
  • The rand weakened early Thursday as the market was weighed down by ongoing planned power outages locally and weakening global risk appetite. Still, the rand managed to post a 0.38% gain against the dollar. gain against the dollar as it traded around the R15.29 mark. Electricity utility Eskom said on Wednesday that there will be power outages until Monday as some of its power plants have failed. This is the latest in a series of outages that have affected economic growth in South Africa.
  • Gold prices were steady this morning and on the verge of a weekly gain as a weaker dollar, worries about stubborn inflation and tensions over Ukraine spurred demand for the precious metal, which is considered a safe haven. Meanwhile, oil prices rose this morning, extending their strong gains from the previous day after freezing weather swept across much of the United States and threatened to further disrupt oil supplies.

 

In Local News

 

CURRO HOLDINGS LIMITED – trading statement

Recurring comprehensive income will decrease by 30.3% to 43.7% from R179 million in the previous fiscal year and comprehensive income will decrease by 36.0% to 50.0% from R171 million in the previous fiscal year. The rights offering in September 2020 resulted in 27% more shares being issued on a weighted average basis in the fiscal year ending December 2021 compared to the previous fiscal year, significantly reducing the corresponding earnings per share figures. The Company had 597,961,595 shares outstanding for the full fiscal year 2021, compared to a weighted average of 470,998,749 shares in the prior comparable period.

 

DRDGOLD LIMITED – Trading Statement

DRDGOLD is in the process of finalising its results for the six months ended 31 December 2021 and shareholders are advised that the company is reasonably certain to report earnings per share (“EPS”) and earnings per share (“HEPS”) of between 52.5 cents and 63.6 cents, compared with EPS and HEPS of 111 cents for the six months ended 31 December 2020 (“previous comparative period”), representing a decrease of 43% and 53% respectively. Revenue decreased by R478.9 million or 16% to R2,498.5 million (2020: R2,977.4 million). Cash operating costs increased by R161.4 million or 11% to R1,680.2 million (2020: R1,518.8 million). As at December 31, 2021, DRDGOLD’s cash and cash equivalents amounted to R2,239.1 million (June 30, 2021: R2,180.0 million).