Daily Report 23 November 2022

SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.38% higher at the 72 519 level. Resources and financials were advancing around 1%.
Omnia Holdings Limited released financial results for the six months ended 30 September 2022. The company said that operating profit for agriculture segment rose 33% to R658 million. Headline earnings per share from continuing operations increased to, excluding Zimbabwe operations, R4.01 versus R3.04 year ago and earnings per share increased to 410 cents (HY2022: 300 cents). Omnia delivered exceptional financial results for HY2023, with growth in revenue, margin improvement and prudent cash management.
Old Mutual said that they have applied for a banking licence, as the banking licence would serve as platform to drive greater interactions with its client base and cross sell its products across the group. It would also enable the insurer to accept retail deposits, thereby providing a cheaper source of funding.
Tradehold Limited reported interim financial statements for the six months to 31 august 2022. Headline earnings per share was 6.7 pence, compared to earnings of 2.6 pence per share for the corresponding interim period, and tangible net asset value per share (as defined by management) was 92 pence/R18.25, compared to 101.3 pence/R20.96 on 28 February 2022. On 23 May 2022, Tradehold announced the disposal of all its property assets and operations in the United Kingdom as part of its restructuring of the business. As part of the restructuring, Tradehold will be converted to an industrial/logistics-focussed real estate investment trust (REIT) under the name Collins and remain listed on the Johannesburg Stock Exchange.
In a trading update for the four months to October, Bidcorp said that its sales were 29% higher than the same month in the previous year. The company also said Australia and New Zealand delivered excellent results, while other businesses also grew, except for its Angliss Greater China business, which has seen no improvement in its operating environment since January 2022 due to ongoing Covid-19 lockdowns.
Massmart group is officially delisted from the Johannesburg Stock Exchange as of yesterday, Massmart’s delisting follows a R 6.4 billion offer from Walmart.
In a trading update from the Huge Group, the company said that headline earnings per share (HEPS) for the current period will be between 39.0 and 45.5 cents, which will be between 12.62 and 31.39% higher than the HEPS for the comparative reporting period (HY2022: 34.63 cents) and basic earnings per share (EPS) for the current period will be between 35.0 and 50.0 cents, which will be between 87.19 and 81.71% lower than EPS for the comparative period (HY2022: 273.31cents).
Prosus released an interim results announcement for the six months ended 30 September 2022. The company reported that group revenue from continuing operations grew 1% (9%) to US$16.5bn, core headline earnings were US$897m, a decrease of 60% or US$1.3bn and headline earnings decreased by US$2.3bn to a loss of US$6m. Prosus said they are cutting costs but will remain well positioned to navigate difficult macro environment due to their liquid balance sheet.

SA Economy:
Karpowership has relaunched a series of public meetings this week as it plans to link its vessels at three South African harbours to ease the country’s crippling power cuts, arguing that it could provide 1 220 MW of power to the national grid. However, in June 2021, the Department of Forestry, Fisheries and the Environment (DFFE) criticised its public consultation process and failure to submit an underwater noise modelling study.
Eskom said that they have approached National Treasury to ask for R15 billion for diesel so that it can keep the lights on in the country.

Global Economy:
According to the OECD’s latest Economic Outlook, global economic growth will slow to 2.2% in 2023 from 3.1% this year, before accelerating to 2.7% in 2024. Europe is facing significant challenges, including the persistent high inflation levels, rising borrowing costs, energy supply shortages, and the ongoing war in Ukraine. Elsewhere, the OECD said that the US economy should grow 0.5% next year, compared to 1.8% in 2022 and China’s GDP should advance 4.6% (vs September forecast of 4.7%) after growing 3.3% this year amid shutdowns related to the pandemic and property market weakness.
The Central Bank of Nigeria increased its interest rate by 100 bps to 16.5%. Nigeria’s headline inflation rate accelerated to over a 17-year high of 21.1% in October, amid increases in the cost of imported products due to currency depreciation and rising energy costs.

Global Company:
Global markets have been boosted as investors foresee an end in sight for US interest rate rises.
The FTSE 100 closed 1.03% higher at 7 452, mining and energy shares climbed 1.6% and 3.1%, respectively, as commodity prices rebounded. BP and Shell were among the biggest gainers on the index, gaining nearly 6% and 5%, respectively.
The Hang Seng Index is higher by 0.83% to 17 568.
In China, the Shanghai Composite is up 0.23% to 3 096.
Baidu Inc. reported a loss of $21 million in its third quarter. The web search company posted revenue of $4.57 billion in the period. Revenue rose 1.9%, driven by a 25% expansion in the company’s non-online marketing segment.
The Dow Jones Industrial Average rose by 1.31% to 32 827, while the S&P 500 climbed 0.96% to 3 806.
Zoom Video shares fell 4% after the company said its online business continued to decline in the last quarter, with shares now down about 90% from their pandemic high in October 2020.

Commodities:
Gold is down 0.51% to $1 735/oz, while Platinum is lower by 0.38% to $988/oz.
Brent crude was 0.33% higher at $88.09 a barrel.

Currencies:
The rand traded at R17.25 against the US Dollar, R20.52 against British Pound and R17.82 against the Euro.
The Euro is slightly firmer against the US Dollar to trade at $1.0326.