Daily Report 21 November 2022

SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.6% higher at the 72 577 level.
In a trading update from Southern Sun Limited for the six months ended 30 September 2022, the company said that revenue is expected to be between R1 505 million and R1 683 million higher, compared to the prior comparative period of R954 million. Earnings per share (EPS) is expected be between 32.5 cents and 34.7 cents higher when compared to the prior comparative period loss per share of 11.0 cents and headline earnings per share (HEPS) is expected to be between 33.2 cents and 35.2 cents higher, compared to the prior comparative period headline loss per share of 10.9 cents. Southern Sun is scheduled to release its unaudited financial results for the six months ended 30 September 2022 on or about 24 November 2022.
Novus Holdings Limited reported interim results for the six months ended 30 September 2022. The company said that revenue is down 3% to R1 478 million (2021: R1 523 million) and that operating profit is down to R23,3 million (2021: R90,3 million). Headline earnings per share decreased to 2,89 cents per share (2021: 28,49 cents per share) and earnings per share decreased to 2,60 cents per share (2021: 8,52 cents per share).
Netcare Limited released its results for the year ended 30 September 2022. The company reported revenue of 21.63 billion rand versus 21.20 billion rand, headline earnings per share increased by 20.3% for the previous corresponding to 74.0 cents and declared a final dividend 30.0 cents per share. Netcare said total patient days are expected to grow by between 6.5% and 7.5% in 2023.
Astral Foods Ltd reported results for the year ended 30 September 2022, where the company said that headline earnings per share is up 125%, revenue is up 22% and declared a final dividend of 590 cents per ordinary share (gross).
Barloworld limited annual results for the 12 months ended 30 September 2022, stated that headline earnings per share from continuing operations was up 16.0% to 1 096.3 cents from 944.9 cents in FY21. Group revenue increased 9.5% to R49.2 billion from R44.9 billion and it declared an ordinary dividend of 295 cents per share and a special dividend of 550 cents per share.

SA Economy:
The key focusses this week will be on the headline inflation rate for October to be released on Wednesday, as well as the interest rate decision by the South African Reserve Bank, which will be announced on Thursday. Annabel Bishop, Investec chief economist, said that given the weak economic outlook for South Africa in the third quarter, weighted against still-high inflation, she expects the central bank to raise rates by 100 basis points at the meeting.
Ratings agency S&P Global has retained its positive outlook on SA’s credit rating, citing the country’s strong financial markets and an improved fiscal and debt position and said that if SA could keep improving its economic growth and its public finances, the positive outlook might lead to an upgrade of the rating itself.
The department of trade, industry & competition has proposed that exports of ferrous and nonferrous waste and scrap metal be banned for an initial period of six months.

Global Economy:
Retail sales in the UK increased 0.6% month-over-month in October 2022, after falling from an upwardly revised 1.5% in September when an additional bank holiday for the Queen’s funeral was observed by many businesses including retailers.
The GfK consumer confidence for the U.K. climbed to -44 in November from -47 in October and was considerably better than the expected -52.
The People’s Bank of China (PBOC) kept its key lending interest rates unchanged. The one-year loan prime rate (LPR), which is used for corporate and household loans, was kept at 3.65%; while the five-year rate, a reference for mortgages, was maintained at 4.3%.
China reported its first Covid-related death in almost six months over the weekend, while localized lockdowns were implemented in some areas.

Global Company:
The FTSE 100 closed 0.53% higher at 7 385.
The Hang Seng Index is lower by 1.88% to 17 654.
JD.com shares rose 1.4% after the Chinese e-commerce company reported strong quarterly results as Covid-related lockdowns in China prompted more consumers to shop online. JD.com Inc posted an 11.4% rise in third-quarter revenue.
In China, the Shanghai Composite is down 0.4% to 3 085.
Investors in the US is expected to remain cautious as the market will be closed on Thursday for Thanksgiving holiday.
The Dow Jones Industrial Average rose by 0.59% to 33 745, while the S&P 500 climbed 0.47% to 3 965.
Gap shares rose 8.9% after the retail chain beat quarterly sales and profit expectations, helped by steady demand for its formal clothing and dresses.

Commodities:
Gold is up 0.08% to $1 672/oz, while Platinum is higher by 1.08% to $985.60/oz.
Brent crude was 0.29% lower at $97.45 a barrel.

Currencies:
The rand traded at R17.33 against the US Dollar, R20.51 against British Pound and R17.81 against the Euro.
The Euro is slightly firmer against the US Dollar to trade at $1.0283.