South African Market Overview 7 June 2022

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

 

Local Market Update

  • Shares closed firmer on the Johannesburg Stock Exchange (JSE), led by technology companies linked to Chinese tech giant Tencent Holdings. Tech investors and market heavyweights Naspers and Prosus gained 3.88% and 5.15%, respectively. Naspers holds a majority stake in Prosus, which in turn owns 28.9% of Tencent. Commodity stocks also performed well, closing 1.06% higher after crude oil prices earlier reached $120 per barrel. Sasol was among the best performers, rising 3.21%. Overall, the All-Share Index on the JSE rose 0.28% to 71,120 points, while the Top 40 Index closed 0.34% higher at 64,536 points.
  • The rand advanced on Monday as investors around the world welcomed signs that China is easing restrictions ahead of a week that includes a European Central Bank meeting and consumer price data from the U.S., with politics taking centre stage. At the close of trading, the rand was trading around R15.44 against the dollar, up 0.69%.
  • Gold prices remained near their weekly lows this morning as investors bet that aggressive tightening plans by major central banks would keep interest rates higher for an extended period of time, pushing up U.S. Treasury yields and, in turn, the dollar. Oil prices rose this morning on an expected pickup in demand in China, which eased its tight COVID restrictions, and on doubts that a higher production target from OPEC + producers would ease tight supplies.

 

In Local News

 

MULTICHOICE GROUP – Trade Excerpt

Financial results for FY2002 benefited from continued subscriber growth, advertising revenue recovery and a continued focus on cost control across the business. The Group expects core earnings per share for FY22 to be between 5% (38 ZAR cents) and 8% (61
CAR cents) above the 767 ZAR cents reported for FY21. Compared to FY21, the Group expects earnings per share for the current year to be between 35% (177 ZAR cents) and 40% (202 ZAR cents) lower than the FY21 reported earnings per share of 506 ZAR cents. Earnings per share for the current year are expected to be between 20% and 25% lower.

 

ALEXANDER FORBES GROUP – Excerpt from audited results.

Operating profit increased 7% year-on-year to R3221 million, supported by new business wins, higher average assets and market performance. Operating expenses remained well controlled at R2 540 million, an increase of 5% year-on-year. Profit from operations (before non-trading and capital items) increased 9% year-on-year to R720 million. Earnings per share from continuing operations increased 19% year-on-year to 37.2 cents per share. Cash flow from operating activities remains strong at R809 million (2021: R951 million). Our capital position remains solid with a regulatory surplus of R1308 million. The Group’s funded ratio of 1.8 times is well above the target solvency coverage ratio of 1.2 times.