Daily Report 24 November 2022

SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.9% higher at the 72 891 level.
Naspers Ltd. reported that an operating loss for the first half of 2023 has narrowed, driven by higher e-commerce revenue and costs control. Revenue from continuing operations rose to $3.73 billion from $3.26 billion, driven mainly by a 32% increase in e-commerce revenues. Core headline earnings per ordinary share decreased from 416 (US cents) to 210 (US cents). The company said they continued to deliver strong growth while navigating a challenging and fast-changing environment. Growth expectations and valuations came under pressure as consumers adapted to new realities of higher inflation and interest rates, plus the effect of these on their daily lives and spending power.
Telkom reported its interim results for the six months ended 30 September 2022. Its profit fell 52.9% year on year to R641m and headline earnings per share (HEPS) fell 51.9% to 137.2c. Revenue fell by 0.7% to R21.15bn, because of a drop in fixed, mobile and IT service revenue amid strained economic conditions.
Telkom said it remains committed to reinstating dividend policy at end of its 2023 financial year.
Tsogo Sun Gaming Ltd reported interim financial results for the six months ended 30 September 2022.
The company said that headline earnings per share (HEPS) was up 88% to 58.0 cents and earnings per share was up 106% to 64.1 cents. Tsogo Sun declared an interim gross cash dividend of 30.0 cents per share in respect of the six months ended 30 September 2022 from distributable reserves.
Mr Price Group Limited reported interim group results for the 26 weeks ended 1 October 2022. Mr Price
increased basic earnings per share by 13.7% to 500.1 cents and headline earnings per share (HEPS) increased by 10.6% to 496.0 cents and diluted headline earnings per share increased by 10.8% to 486.1 cents. Group revenue was up 6.5% to R13.3bn. A cash dividend of 312.5 cents per share was declared.
Lewis Group Limited reported interim results for the six months ended 30 September 2022. The company said merchandise sales increased by 4.3% to R2.1 billion and revenue increased by 4.0% to R3.5 billion.
Earnings per share decreased by 0.1% to 341 cents and headline earnings per share increased by 19.2% to 393 cents. Lewis highlighted that cash sales in particular have been impacted by the inflationary pressures facing consumers. A cash dividend of 195 cents per share was declared.

SA Economy:
The annual inflation rate rose to 7.6% in October 2022 from 7.5% in the prior month, above market expectations of 7.4% and the upper limit of the South African Reserve Bank’s target range of 3%-6%.
Statistics South Africa said that inflation remained high, mainly driven by rising transport and food prices.
Economists and analysts expect the South African Reserve Bank to hike interest rates by 75 basis points today.
The Bureau for Economic Research showed that the business confidence index dropped by one point to 38 in the fourth quarter when compared with the prior three months of the year.

Global Economy:
The Chinese government said they will ask people traveling into the city to avoid public places such as restaurants, malls and markets starting from today to prevent a nationwide Covid surge from hitting the city.
UK business activity contracted for a fourth straight month in November, indicating that a recession seems inevitable.
The minutes from the Fed’s November meeting showed that the Fed is less hawkish than investors feared and is seeing progress in its fight against high inflation and is looking to slow the pace of rate hikes through to the end of this year and into 2023.

Global Company:
The FTSE 100 closed 0.48% lower at 7 299.
Credit Suisse Group shares fell 2.5% after they warned it would lose around $1.6 billion in the fourth quarter, after customers pulled their investments and deposits over concerns about the bank’s financial well-being. Clients in its wealth-management arm, its main business serving the world’s rich, removed $66.7 billion from the bank.
The Hang Seng Index is higher by 0.59% to 17 622.
In China, the Shanghai Composite is down 0.15% to 3 092, with shares remaining under pressure as major Chinese cities imposed some movement restrictions to curb Covid outbreaks.
The Dow Jones Industrial Average rose by 0.28% to 34 194, while the S&P 500 climbed 0.59% to 4 027.
Apple stock fell 0.2% after violent protests broke out at an assembly plant in China which has been under Covid-19 lockdowns in recent weeks.
HP shares rose 3.1% after the computer maker said that it will cut up to 6 000 jobs by the end of 2025, or about 12% of its global workforce.
Tesla shares rose 7.82% after Citigroup upgraded shares to neutral from sell.
US markets will be closed today for the Thanksgiving holiday and will close early on Friday as well.

Commodities:
Gold is up 0.98% to $1 752/oz, while Platinum is higher by 0.76% to $996/oz.
Brent crude was 3.95% lower at $84.74 a barrel.

Currencies:
The rand traded at R16.93 against the US Dollar, R20.48 against British Pound and R17.67 against the Euro.
The Euro is firmer against the US Dollar to trade at $1.0436.