South African Market Overview 6 June 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 fell slightly on Friday, with the Top 40 index down 0.17% to 64,319 points and the All-Share index down 0.16% to 70,920 points. The stock market was most affected by the commodity index, which closed down 2.14% due to lower metal prices. However, the banking index rose 1.8%, with South African bank FirstRand gaining 4.72% after a trading release forecast total earnings per share to rise more than 20% in 2022.
  • The rand fell on Friday as the dollar rose after a better-than-expected U.S. jobs report that could encourage the Federal Reserve to raise interest rates further. At the close of trading, the rand was trading around R15.55 against the dollar, 0.25% weaker.
  • Gold prices were steady this morning after falling about 1% in the previous session after a solid U.S. jobs report signalled more rate hikes this year, weighing on precious metals prices. Meanwhile, oil prices rose more than $2 in early trading this morning after Saudi
    Arabia sharply raised prices for its July crude sales, an indicator of how tight supplies are even after OPEC + agreed to accelerate its production increases over the next two months.


In Local News


TRP decision puts Tongaat Hulett in ‘appalling position’

Tongaat Hulett’s planned recapitalization to reduce its massive debt has suffered a major setback as a result of the Takeover Regulation Panel’s (TRP) decision to withdraw a previously granted exemption for the company to make a mandatory offer to its shareholders.
Shareholder activist Chris Logan said Sunday that TRP ‘s withdrawal of the exemption puts Tongaat Hulett in a “terrible position.” Tongaat Hulett said Friday that under the rules, Tongaat Hulett and Magister Investments can request a hearing from the Takeover Special Committee (TSC).(TSC) to request a hearing on the decision TRP within five business days of receiving the decision.


FirstRand expects FY earnings to rise by at least 20%

JSE-listed FirstRand Limited expects profit to increase by at least 20% for the fiscal year ending June 30, 2022, as the company sees continued growth in loans and stronger momentum in corporate activities, the company said in a trading statement. The financial services provider said Friday it expects earnings per share (Heps) to rise to 576.6 cents from 480.5 cents and EPS to 572.2 cents from 476.9 cents. “The credit cycle in South Africa is gradually gaining momentum, particularly in the retail and commercial sectors. Corporate activity is also showing stronger momentum, particularly in the last quarter,” FirstRand said in a statement.