Daily Report 17 November 2022

SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.5% lower at the 72 607 level, as losses in resource shares and retailers outweighed strong gains in tech companies, with Naspers gaining as much as 6% on the day.
Mediclinic International PLC reported a 4.4% rise in pre-tax profit for the first half of 2023 on revenue that was boosted by more inpatient and day case admissions, but offset by lower average revenue per case compared with the pandemic-affected comparable period. The company said that group revenue increased by 10% and headline earnings per share of 11.3 pence. No interim dividend was proposed in light of the current offer for Mediclinic.
In a trading update from Tiger Brands LTD, the company said that headline earnings per share is expected to rise in a range of between 48% and 53% to end September driven by recoveries in the snacks & treats division, Wheat Millbake and exports. In September, the firm had guided earnings growth of between 35% and 45%.
The Spar Group reported that its operating profit for the year ended 30 September 2022 edged up 1.1% to R3.43bn and profit after taxation by 0.5% to R2.2bn as its business in Poland reported a loss before tax of R455.4m. The board of the company declared a final dividend of 225c per share for the year end-September.
Life Healthcare Group Limited reported results for the twelve months ended 30 September 2022. The company said that group revenue from continuing operations increased by 4.9% to R28.2 billion (FY2021: R26.9 billion) consisting of a 5.0% increase in southern African revenue to R20.0 billion. Earnings per share from continuing operations decreased by 7.7% to 105.8 cents and headline earnings per share from continuing and discontinued operations decreased by 4.5% to 106.1 cents. Life Healthcare
declared cash dividend of 25.0 cents per ordinary share.

SA Economy:
Retail sales went down by 0.6% from a year earlier in September 2022, after an upwardly revised 2.1% rise in the previous month and defying market forecasts of a 1% increase.
Transnet said that they are still working on a plan to clear a jam of trucks carrying coal and other commodities at its Richards Bay port after last week’s derailment on a rail artery. A train carrying coal for export derailed on the 8th of November on Transnet’s North Corridor, causing the partial closure of the train line that is also used to transport chrome and other commodities.

Global Economy:
U.K. inflation came in at 11.1%, analyst suggests that the latest data will prompt the Bank of England to keep hiking interest rates.
New home prices in China’s 70 major cities dropped by 1.6% year-on-year in October 2022.
The annual inflation rate in Croatia rose to 13.2 % in October 2022, a new record high, up from 12.8% in the previous month.
Retail sales in the U.S. rose 1.3% month-over-month in October 2022, the strongest increase in eight months, after a flat reading in September and beating market forecasts of a 1% gain.
Investors were worried about a potential escalation of conflict in Europe after a Russian-made missile hit Polish territory and killed two civilians.
China’s daily COVID count grew at its fastest pace in seven months this week, prompting more restrictions by the government.

Global Company:
The FTSE 100 closed 0.25% lower at 7 351.
The Hang Seng Index is lower by 2.14% to 17 872, with sharp losses coming from technology shares.
Tencent Holdings Ltd.’s revenue fell for the second straight quarter. Tencent posted revenue of 140.09 billion yuan ($19.89 billion) for the third quarter, down 1.6% from a year earlier. The revenue decline was due to continued weakness in its main gaming business and falling advertising revenue. Net profit rose 1.1% to CNY39.94 billion.
Meituan shares fell more than 6% after Tencent said it would offload 958.1 million shares in the form of a special dividend to shareholders.
In China, the Shanghai Composite is down 0.68% to 3 098, as the People’s Bank of China warned that inflation may accelerate due to an expected increase in demand.
The Dow Jones Industrial Average fell by 0.12% to 33 553, while the S&P 500 was down 0.83% to 3 958.
Target shares fell 15% after the company reported a 50% drop in its profit for the third quarter and lowered forecasts for holiday season. The disappointing results from Target pushed other retailers such as Macy’s, Kohl’s, Nordstrom, and Gap lower.

Commodities:
Gold is down 0.62% to $1 762/oz, while Platinum is lower by 1.41% to $1 010/oz.
Brent crude was 1.64% lower at $91.83 a barrel.

Currencies:
The rand traded at R17.30 against the US Dollar, R20.59 against British Pound and R17.95 against the Euro.
The Euro is slightly firmer against the US Dollar to trade at $1.0385.