South African Market Overview 4 May 2022

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

 

Local Market Update

  • Stocks on the Johannesburg Stock Exchange (JSE) fell as investors were anxious ahead of the Fed’s decision. The benchmark All-Share index ended down 1.52% at 71,339 points and the Top 40 Companies index ended down 1.64% at 64,401 points. All major indices, including banks, industrials and mining, ended the day in the red.
  • The rand regained some strength against the dollar on Tuesday, although the unit remained near its weakest level in nearly four months amid a rise in the dollar and an imminent interest rate hike by the Federal Reserve. At the close of trading, the rand was trading 1.77% firmer against the dollar, trading around the R15.77 level. Although the rand recovered some of its losses from Monday during the day, analysts expect the currency to remain under pressure in anticipation of the Federal Reserve’s rate hike.
  • Gold prices fell early today as higher U.S. government bond yields and the impending Federal Reserve rate hike announcement dampened demand for the zero-interest bar. Oil prices rose at the start of Asian trading this morning after the industry reported a drop in U.S. crude and fuel inventories, raising supply concerns and offsetting worries about slowing demand from China, the main importer. The gains came on the back of news Tuesday that the European Union is working on new sanctions against Russia over its war on Ukraine, which will target Moscow’s oil industry.

 

In Local News

 

RENERGEN LIMITED – ASX Appendix 4E – Preliminary Final Report.
Higher energy prices associated with improvement in COVID -19 interdiction restrictions in South Africa
Africa during the year under review compared to the previous comparative period had a positive impact on the Group’s revenue, which increased by 36.8% or R0.7 million. Net loss attributable to ordinary shareholders and comprehensive loss attributable to ordinary shareholders decreased by 20.7% and R8.8 million respectively, mainly due to the subsequent R2.8 million increase in other operating income, primarily attributable to net foreign exchange gains.

COMBINED MOTOR HOLDINGS LIMITED – Condensed Consolidated Financial Statements
The Group’s financial highlights for the year ending February 28, 2022 include a 122% increase in basic earnings per share. Dividend payout per share up 135%. Total earnings per share up 117%. Cash up 8% to R817 million. The Group Chief Executive Officer said, “I am proud and delighted with the exceptional financial results achieved in the financial year to February 2022.
The period under review was a classic case of preparation and opportunity. The difficult and stressful decisions and actions taken over the past year have enabled the Group to capitalise on the few positive developments that have occurred during a period of continued turbulence.”