Daily Report 25 November 2022

SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.32% higher at the 73 127 level.
Kaap Agri Ltd released its financial statements for the year ended 30 September 2022. The company performed strongly during the year, increasing revenue by 48.4% to R15.70 billion, up from R10.58 billion in previous financial year. Headline earnings per share increased by 22.3% to 556.30 cents per share. Kaap Agri also said the agriculture outlook is stable, producer cashflow pressure continues due to high input costs and logistical and export payment challenges and outlook for fruit and vegetable production in upcoming agricultural season looks encouraging. A dividend of 122.00 cents per share has been approved and declared.
Clicks Group said that they are going to acquire Sorbet Holdings, the owners of the Sorbet beauty salons, for a cash consideration of R105 million. The transaction will result in the Clicks Group holding 100% of the issued share capital of all Sorbet group entities.
Southern Sun limited reported interim results for the six months ended 30 September 2022. Southern Sun said the trading levels during the first six months of the 2023 financial year have been encouraging with occupancy increasing to 46.0% from 21.9% in the prior comparative period and the group returning to profitability with adjusted headline earnings of R17 million and free cash flow of R191 million from continuing operations.

SA Economy:
The South African Reserve Bank raised its benchmark repo rate by 75 bps to 7% at its meeting yesterday, as widely expected. This means that the prime lending rate in the country will increase from 9.75% to 10.50%.
The headline CPI forecast was revised up to 6.7% in 2022 (vs 6.5% in September) and to 5.4% in 2023 (vs 5.3%), but lowered to 4.5% in 2024 (vs 4.6%).
The annual producer inflation fell to 16% in October 2022, from 16.3% in September, matching market forecasts.
The state-owned oil company PetroSA has made 50 million litres of diesel available to Eskom, enough to last the power utility for about two weeks.

Global Economy:
The German Ifo Business Climate indicator rose by 1.8 points from the previous month to 86.3 in November 2022, the highest in three months and above market consensus of 85.0.
The economy of Nigeria advanced by 2.25% from a year ago in the third quarter of 2022, decelerating from the second quarter’s 3.54% expansion and missing market estimates of a 2.95% rise.

Global Company:
The FTSE 100 closed flat at 7 466.
The Hang Seng Index is lower by 0.71% to 17 532. Year to date, the Hang Seng index is down almost 24.77%, with shares struggling for direction after surging Covid cases in China fueled fears of lockdown-like restrictions. Chinese stocks also failed to gain momentum even after the government announced more monetary stimulus to support the economy.
In China, the Shanghai Composite is up 0.44% to 3 102.
The US markets were closed yesterday for the Thanksgiving holiday.

Gold is up 0.21% to $1 756/oz, while Platinum is lower by 0.79% to $988/oz.
Brent crude was 0.92% higher at $85.53 a barrel.

The rand traded at R17.00 against the US Dollar, R20.55 against British Pound and R17.71 against the Euro.
The Euro is trading flat against the US Dollar to trade at $1.0410.


Brent Oil Futures
Gold Futures
Top 40 Futures


Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1756.39 0.21% USD/ZAR 17.00 Top40 66765.00 0.37%
Platinum 988.30 -0.79% GBP/ZAR 20.55 Dow 30 34194.06 0.00%
Brent 85.53 0.92% EUR/ZAR 17.71 S&P 500 4027.26 0.00%
Copper 3.64 -0.38% EUR/USD 1.0410 FTSE 7466.60 0.02%
Palladium 1883.03 -0.60% USD/JPY 138.68 DAX 14539.56 0.77%
Iron Ore 99.00 1.01% BITCOIN 16405.90 Shanghai 3103.68 0.40%
Source:  Moneyweb & Investing.com