Daily Report 29 November 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.3% higher at the 73 368 level, resource shares were leading the losses, while retailers and industrials edged higher.

Reunert’s share price was up 5.6% to R47.32 per share as it reported double-digit growth in revenue and profit in its results for the year to end-September. The group’s revenue increased 16% to R11 billion from R9 billion in the previous period, while operating profit soared 17% to R1.2 billion from R1 billion. Reunert reported a 9% jump in headline earnings to 519 cents, from 478 cents in the previous period.

The company declared a final dividend of 224 cents per share. The dividend has been declared from retained earnings.

Invicta Holdings Limited reported interim results for the six months ended 30 September 2022, where the company said that group revenue rose 7% to R3.8 billion to end-September and that headline earnings rose 35% to R278 million in the six months to end-September, but Invicta has opted not to pay a dividend. Invicta said it bought back about 4.7% of ordinary shares and 5% of its preference shares, to the value of about R167 million.

Rand Merchant Investment Holdings limited will change its name from “Rand Merchant Investment Holdings Limited” to “OUTsurance Group Limited” under the abbreviated name “OUTsure”, with a new JSE share code “OUT”, from the commencement of trading on Wednesday, 7 December 2022.

MTN Group Ltd. said that the Ghana National Communications Authority has issued a directive on unregistered SIM cards, barring customers that haven’t completed the registration process. Customers who have completed stage one of subscriber registration, but not stage two would be fully barred, effective from the 1^st of December.

 

SA Economy:

Consumers may be in for another electricity price shock if national energy regulator Nersa approves the recommendation of its electricity subcommittee. The regulator members will decide later today whether Eskom is entitled to recover 32% more revenue from electricity users next year and, if not, how big an increase it will allow.

The labour unions gave the national government seven days to meet their wage demands or face a national shutdown on Friday.

 

​Global Economy:

Chinese protestors clashed with the police in several major cities, on growing public discontent over the government’s strict anti-COVID measures. The unrest could now potentially further hamper Chinese economic growth, which is already reeling from the country’s strict anti-COVID measures this year.

Hong Kong’s trade deficit narrowed to $20.9 billion in October 2022, from $30.5 billion in the same period a year earlier. Exports from Hong Kong fell by 10.4% to $374.7 billion in October 2022, while imports to Hong Kong dropped by 11.9% to $395.5 billion.

The ECB President Christine Lagarde warned that the Euro Zone’s inflation had not peaked yet, and risks are turning out even higher than currently expected.

Global markets remain uncertain over where U.S. interest rates will peak, given that inflation is still well above the Fed’s target.

Investors now look ahead to the November non-farm payroll report on Friday.

 

Global Company:

The FTSE 100 closed 0.17% lower at 7 474.The FTSE tracked losses in Asian shares due to the protests in China against the country’s coronavirus-related restrictions.

Support for Chinese property developers boosted Chinese and Asian stocks.

The Hang Seng Index is higher by 4.06% to 17 991.

In China, the Shanghai Composite is up 2.07% to 3 142, China’s securities regulator lifted a ban on equity refinancing for listed property firms.

The Dow Jones Industrial Average fell by 1.45% to 33 849, while the S&P 500 was lower by 1.54% to 3 963.

Apple shares fell 2.6% after a media report said that the company would face an approximately 6 million iPhone Pro production shortfall due to the unrest at Foxconn’s Zhengzhou plant.

 

Commodities:

Gold is up 0.22% to $1 753/oz, while Platinum is higher by 3.47% to $1 012/oz.

Brent crude was 5.41% higher at $85.93 a barrel.

 

Currencies:

The rand traded at R17.17 against the US Dollar, R20.52 against British Pound and R17.75 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0382.