Daily Report 29 April 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index gained 1.8% to close at 71 534. Clicks reported that its half-year earnings jumped by 26%, as sales picked up by 13.6% over the six-month period ended February 2022. Headline earnings per share rose from 370.6 cents in the 2021 half-year, to 466.9 cents in 2022. The company’s interim dividend was up 26.3% to 180 cents per share. Payment to shareholders will take place on Monday, 4 July 2022. Clicks share price was lower by 0.33% to R320.00. In a trading update from Dis-chem, the company signaled that it anticipates earnings increase of between 24.5% and 29.5% for the year and its headline earnings per share will be between 96.9 cents and 100.8 cents for the year ended 28 February 2022. Dis-Chem will release its results for the twelve months ended 28 February 2022 on 23 May 2022. Pepkor said its headline earnings will be between 22.3% and 31.9% higher for the six months to end-March 2022. The increase in EPS and HEPS is attributed to improved operational performance as well as the successful implementation of the Steinhoff global settlement and included the settlement of all claims and
litigation of former Tekkie Town owners and management against Steinhoff and Pepkor.

SA Economy:

Organisation Undoing Tax Abuse (OUTA) is suing the National Energy Regulator (NERSA) over its award of generation licenses to Karpowership, threatening to further delay a program to add power to the national grid to alleviate current outages. The contract allows for Karpowership to supply South Africa with 1 220 megawatts of electricity from gas-fired power plants as part of an emergency program to procure 2 000 megawatts of power. OUTA believes that NERSA did not act in the best interests of the country when they granted permits to the Turkish company last year. Producer Price Inflation (PPI) rose 11.9% year-on-year in March 2022, accelerating from a 10.5% increase in the previous month and above market expectations of 10.8%.

Global Economy:

The US economy’s gross domestic product fell 1.4% in the first three months of 2022, well below market forecasts of a 1.1%, following a 6.9% growth in Q4 2021. Risks to global growth from China’s increasing lockdowns in Beijing and volatility in energy markets due to Russia’s cut of natural gas supplies to European countries, as well as soaring inflation and global supply chain constraints clouds the outlook further for global economic growth.

Global Company:

European stocks gained on good corporate earnings. Standard Chartered jumped 15.2% after upbeat quarterly earnings. Hang Seng is up 3.26% to 20 931, led by Chinese tech stocks after reports of a possible resolution to the Sino-U.S. audit dispute. JD.com and Alibaba each rose as much as 14%. The Shanghai Composite gained 2.39% to 3 045. Samsung Electronics posted a 60% rise in first-quarter net profits, largely driven by steady memory chip demand and smartphone sales. The Dow Jones Industrial Average rose 1.85% to end at 33 916 points, while the S&P 500 gained 2.47% to 4 287 Amazon was down 9% in extended trading after reporting a surprise loss due to its investment in Rivian, while Apple declined more than 2% after the company warned of supply constraints.

Commodities:

Gold is up 1.76% to $1 908/oz, while Platinum gained 1.91% to $921/oz. Brent crude was 4% firmer at $108.26 a barrel.

Currencies:

The rand traded at R15.88 against the US Dollar, R19.92 against British Pound and R16.75 against the Euro. The Euro is flat against the US Dollar to trade at $1.05.

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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1908,24 1,76% USD/ZAR 15,88 Top40 64552,00 1,88%
Platinum 921,80 1,91% GBP/ZAR 19,92 Dow 30 33916,39 1,81%
Brent 108,26 4,29% EUR/ZAR 16,75 S&P 500 4287,50 2,41%
Copper 4,47 1,15% EUR/USD 1,05 FTSE 7509,19 1,11%
Palladium 2252,00 0,82% USD/JPY 130,43 DAX 13979,84 1,33%
Iron Ore 138,00 0,72% BITCOIN 39460,00 Shanghai 3043,00 2,53%
Source:  Moneyweb & Investing.com