South African Market Overview 9 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 on the Johannesburg Stock Exchange (JSE) continued to fall yesterday. The Johannesburg All-Share Index fell 0.52% to 69,950 points, while the Top 40 Index closed 0.45% lower at 63,449 points. Commodity and financial stocks slipped 1.34% and 0.96%, respectively, as they weighed the most on the overall market. Industrial stocks gained 0.48%. On an individual stock basis, Naspers and Prosus gained 8.91% and 6.81%, respectively, and were the best performers of the day. On the other hand, Bytes Technology led the list of losing stocks with a drop of 6.54%.
  • The rand trended firmer on Wednesday, while the dollar rose due to the increase in U.S. government bond yields. At the close, the rand was trading 0.55% firmer at an exchange rate of 15.30 rupees per dollar.
  • Oil prices extended gains this morning, supported by robust demand in the United States, the world’s largest consumer, while demand in China is expected to rebound as COVID -19 restrictions in major cities are eased. The Energy Information Administration (EIA) said Wednesday that the United States saw a record decline in its strategic crude oil reserves, although commercial inventories rose last week. Gold prices edged lower today, held back by rising Treasury yields ahead of key U.S. jobs and inflation data this week.


In Local News

Telkom to implement tariff increases across all services
JSE-listed telecommunications company Telkom has announced that it will increase fixed-line and broadband tariffs, as well as certain mobile tariffs and services, effective August 1- the first tariff increase in more than two years. Telkom says the increases will affect all fixed line tariffs, Fibre to the Home (FTTH), Digital Subscriber Line (DSL) and Pure Connect products. The company says there will be an increase in out-of-bundle rates for mobile voice services from R0.70 to R0.75 and for data services from R0.30 to R0.32 per megabyte (MB) of data.

THE SPAR GROUP LIMITED – Unaudited interim results.
The group delivered robust revenue growth, increasing revenue by 5.2% to R67.6 billion, while group operating profit increased by 7.1% to R1.8 billion. SPAR Southern Africa delivered a strong performance. Profits in the foreign business came under pressure due to increased labour and energy costs. The Polish business, although loss-making, showed an improvement. Diluted earnings per share increased 3.7% to 641.1 cents. The board declared an interim dividend of 175.0 cents per share, in line with the temporarily adjusted dividend policy. SPAR
South Africa reported solid growth with wholesale sales up 7.7% to R43.8 billion.