Daily Report 01 December 2022

SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 2.32% higher at the 74 828 level, mainly pushed up by shares of heavyweight Naspers that closed up 6.1% and Prosus higher by 3.7%.
In a trading update from Sasol, the company said that that it expects earnings per share to rise more than 20% in the first half 2023. The company didn’t provide a specific range for the six months ending 31 December 2022. However, last year it posted EPS and headline EPS of R23.98 and R15.21, respectively.
Sasol will release its 2023 half year financial results on Tuesday, 21 February 2023.
Nampak said that that company expects its headline earnings per share (HEPS) to decrease to between 33.0 cents and 37.0 cents compared to HEPS of 62.3 cents in FY21, representing a decrease of between 41% and 47%. With Nampak’s current debt package and the US Private Placement funding maturing on 31 December 2022 and on 28 May 2023 respectively, coupled with the requirement to repay R1.35 billion of net debt by 31 March 2023, the group is required to refinance its debt package before 31 March 2023. This refinancing is in process and subject to the group raising capital of no less than R1.35
billion (net of fees and expenses) by 31 March 2023.
Salungano (formerly Wescoal) said that they expect to report interim headline earnings per share to drop as much as 208% in the six months ended in September 2022. Earnings per share will be a loss of between R0.19 and R0.23 per share, compared with an R0.19 profit in the comparative period. Salungano’s interim results will be released next week Wednesday, 7th of December 2022.
Hyprop Investments will list on the A2X alternative exchange, following companies like Stor-Age, Fairvest and Growthpoint. The company, which owns malls such as Rosebank Mall, Hyde Park Corner and Canal Walk, will be available to trade on the alternative exchange from the 7th of December.

SA Economy:
South Africa recorded a trade deficit of R4.31 billion ($254.40 million) in October, down from a revised surplus of 26.16 billion rand in September, while analysts were expecting a trade surplus of 16.85 billion rand, according to data received from the revenue service.

Global Economy:
The US Federal Reserve Chairman Jerome Powell confirmed that smaller interest rate increases are likely ahead and could start in December but cautioned that monetary policy is likely to stay restrictive for some time until real signs of progress emerge on inflation.
The S&P Global India Manufacturing PMI increased to a three-month high of 55.7 in November 2022 from 55.3 in the prior month, exceeding expectations of 55.0.
The Caixin China General Manufacturing PMI edged up to 49.4 in November 2022 from 49.2 in October, above market forecasts of 48.9.

Global Company:
The FTSE 100 closed 0.81% higher at 7 573. Antofagasta and Anglo American were among the biggest gainers on the index, up roughly 4% each.
Rio Tinto said that they expect iron-ore shipments from its Australian mines to be steady year over year in 2023, and for aluminum output to rise.
In Asia, China and Hong Kong shares tracked global markets higher on expectations that the U.S. Federal Reserve will slow the pace of rate hikes, and signs of some relaxation in China’s strict anti-COVID curbs.
The Hang Seng Index is higher by 1.39% to 18 852.
In China, the Shanghai Composite is up 0.71% to 3 173.
The Dow Jones Industrial Average rose by 2.18% to 34 589, while the S&P 500 climbed 3.09% to 4 080.
Nvidia shares rallied more than 8%, Microsoft jumped 6.2% and Apple climbed 4.9%.

Commodities:
Gold is down 0.47% to $1 746/oz, while Platinum is higher by 2.12% to $1 052/oz.
Brent crude was 0.46% higher at $85.43 a barrel.

Currencies:
The rand traded at R17.09 against the US Dollar, R20.67 against British Pound and R17.85 against the Euro.
The Euro is slightly firmer against the US Dollar to trade at $1.04