Daily Report 07 March 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.5% higher at the 78 698 level.

RCL Foods reported financial results for the six months ended December 2022. The company said that its headline earnings per share (HEPS) for the period fell to 56.4 cents, while earnings before interest, tax, depreciation and amortization (EBITDA) declined 8.9% to R1.2 billion. Revenue rose 17.6% to R20.2 billion, due to higher pricing across all business units, combined with higher volumes in the sugar and chicken businesses. RCL Foods scraped its dividend as rising costs continued to hurt profit.

In a trading update from Stadio, the company said that headline earnings per share, which includes management adjustment for non-recurring items, are expected to rise by between 11% and 23%, also reporting an 8% rise in student numbers in its second half to 41 296. Stadio’s shares were down 5.8% to R4.71 per share.

Hulamin said that net profit for the full-year 2022 declined to R299.7 million, compared with R591.3 million a year ago. Headline earnings per share was up 28% to 105 cents per share and EPS stood at R0.91 from R1.80. No dividend was declared in respect of the current period.

Metrofile reported financial results for the six months ended 31 December 2022. The company said that revenue increased by 19% to R564 million. EPS was unchanged at 14.5 cents, while headline EPS edged down at 14.4 cents. Metrofile declared a dividend of 9 cents per share.

Nedbank reported a 20% rise in full year profit. The company said that it had benefited from higher interest rates. Revenue grew 11% to R63.58 billion. Nedbank’s headline earnings per share was at R28.86, up from R24.10 posted in the prior year. Nedbank declared a dividend of 866 cents for the year and announced a R5 billion ($274.28 million) share-repurchase program to be carried out over next 12 months.

 

SA Economy:

The Trade & Industrial Policy Strategies (TIPS), an independent economic research institution, released its annual real economy bulletin provincial review yesterday. The data showed that manufacturing was dominant in the three largest provinces Gauteng, KwaZulu-Natal and the Western Cape. Together, these provinces account for 76% of national manufacturing.

President Cyril Ramaphosa formally appointed Kgosientso Ramokgoba, the former Head of Investment and Infrastructure in the Presidency, to be the new Minister of Electricity in the Presidency.

 

Global Economy:

Imports to China fell 10.2% from a year earlier to $389.42 billion in January-February 2023. Exports from China fell 6.8% from a year earlier to $506.3 billion in January-February. China’s trade surplus increased to $116.88 billion in January-February 2023 combined from $109.7 billion in the same period of a year earlier, beating market forecasts of $81.8 billion.

The S&P Global Eurozone Construction PMI rose to 47.6 in February 2023 from 46.1 in the previous month.

Retail sales in the United Kingdom jumped 4.9% on a like-for-like basis in February 2023 from a year ago, exceeding market expectations for a 4.8% gain.

 

Global Company:

The FTSE 100 closed 0.22% lower at 7 929, hovering around the flatline, as mining shares dragged down the index after the downbeat economic news from China. Glencore and Anglo American closed down over 4% each.

The Hang Seng Index is higher by 0.69% to 20 745. The energy sector rose 4.5%, supported by strong gains from CNOOC up 5.7%, China Petroleum & Chemical gaining 5.1% and Petro China up 4.2%.

In China, the Shanghai Composite is trading flat at 3 318.

The Dow Jones Industrial Average closed marginally higher at 33 431, while the S&P 500 was up slightly   to 4 048.

Apple shares closed 1.85% higher after Goldman Sachs initiated coverage on the iPhone maker with a buy rating.

Tesla announced that they have cut the prices of its two costliest vehicles, the Models X and S by $10 000 in an attempt to boost demand. Tesla shares closed 2% lower at $193.81.

 

Commodities:

Gold is flat at $1 847/oz, while Platinum is lower by 0.11% to $976/oz.

Brent crude was 0.41% higher at $86.18 a barrel.

 

Currencies:

The rand traded at R18.24 against the US Dollar, R21.96 against British Pound and R19.50 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0687.