Daily Report 27 October 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.9% higher at the 67 103 level.

In a trading update from the Foschini Group for the six months ended 30 September 2022, the company said that earnings per share will increase by between 35% and 55% and headline earnings per share will be between 8% and 28% higher. Turnover growth will be 31% when compared to Q2 FY2022 of 22.5% despite continued pressure on consumers. The Group’s financial results for the six months ended 30 September 2022 will be

released on SENS on or about the 11^th of November 2022.

Bytes Technology Group Plc reported results for the six months ended 31 August 2022, by saying it obtained strong first half and extending its track record of double-digit growth. Revenue increased 27.9% to £93.5 million (H1 FY22: £73.1 million), earnings per share increased 17.4% to 9.06 pence (H1 FY22: 7.72 pence) and

declared an interim dividend of 2.4 pence per share which will be paid on Friday, 2^nd December 2022.

In a trading update from MiX Telematics, the company said that they expect a basic loss per share (EPS) and basic headline loss per share (HEPS) for the six months ended September 30, 2022, of 0.4 cents per share and 0.5 cents per share respectively compared to EPS and HEPS of 13 cents per share for the six months ended September 30, 2021. The decrease in EPS and HEPS performance is primarily due to non-cash deferred tax charges of R60 million arising from foreign exchange movements on intercompany loan funding between MiX Telematics Ltd. and MiX Telematics Investments Proprietary Limited.

Kumba production and sales report for the third quarter ended 30 September 2022 stating that Sishen continues to deliver a solid performance and that Kolomela saw a 40% increase in waste mining and a 22% increase in production. Kumba said that they maintain full year 2022 production guidance, although at the lower end of 38-40 Mt, despite the impact of industrial action at Transnet.

Anglo American Platinum Limited production report for the third quarter ending 30 September 2022, showing that total PGMs production (expressed as 5E+Au metal-in-concentrate) decreased by 6% to 1 046 100 ounces.

Refined PGMs production (owned production, excluding tolling) decreased by 30% to 994,800 ounces due to the Polokwane smelter rebuild, its first full rebuild in twelve years.

Anglo American said that its third-quarter output rose 16% from the second quarter, driven by a ramp-up of the group’s steelmaking coal longwall operations and strong performance at its De Beers unit. In the three months ended 30 September, production of rough diamonds rose by 4% to 9.6 million carats from a year earlier, supported by higher grades in Botswana.

 

SA Economy:

The National Treasury reported an improved fiscal and debt outlook at its mid-term budget for 2022, helped by buoyant mining receipts. The finance minister, Enoch Godongwana said government plan to use this revenue to increase spending in health, education and local government free basic services, infrastructure, and security and safety. A portion will also be used to bail out three state-owned firms critical for the economy.

 

​Global Economy:

The European Central Bank is expected to increase rates by 75bps later today, raising borrowing costs to their highest since 2009 in a bid to curb inflation that rose to a record of 9.9% in September.

Britain’s new Prime Minister, Rishi Sunak delayed the announcement of a plan to repair the country’s public finances until the 17^th of November. The plan is expected to show how the government will plug a budget shortfall of as much as 40 billion pounds ($45.88 billion).

Poor U.S. economic data reinforced speculation that the Federal Reserve will slow its interest rate hikes, with U.S. home prices falling the most in August as surging mortgage rates exhausted demand.

 

Global Company:

The FTSE 100 closed 0.61% higher at 7 056, as gains in the energy and healthcare sectors offset losses in consumer staples.

Barclays PLC said that its third-quarter pre-tax profit and total income rose ahead of market views, and that it achieved income growth in all three of its businesses.

Credit Suisse reported a third quarter net loss of 4.034 billion Swiss Francs, much larger than expectations for a loss of 567.93 million Swiss Francs.

The Hang Seng Index is higher by 0.96 % to 15 464.

In China, the Shanghai Composite is down 0.43% to 2 986.

The Dow Jones Industrial Average closed flat at 31 839, while the S&P 500 was lower by 0.74% to 3 830.

Facebook parent, Meta Platforms lost 18% after reporting Q3 EPS of $1.64, down from $3.22 a year earlier, while revenue fell 4% to $27.71 billion, Snap fell 3.3% and Amazon declined 3.5%.

 

Commodities:

Gold is up 0.1% to $1 663/oz, while Platinum is higher by 3.01% to $955/oz.

Brent crude was 3.48% firmer at $94.10 a barrel.

 

Currencies:

The rand traded at R17.91 against the US Dollar, R20.81 against British Pound and R18.04 against the Euro.

The Euro strengthened past parity with the dollar and is currently trading at $1.0070.