SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.7% lower at the 89 519 level on Thursday.
The JSE reached a new record high last week, driven by a rally in the gold mining companies Harmony Gold, AngloGold Ashanti and DRDGold.
ADvTECH Limited delivered strong financial results for the year ended 31 December 2024, with revenue increasing by 8% to R8.52 billion. Operating profit before interest and non-trading items rose by 14% to R1.79 billion, while normalised earnings climbed by 17% to R1.1 billion. Normalised earnings per share (NEPS) and headline earnings per share (HEPS) both grew by 16% to 202.5 cents and 202.2 cents, respectively. The company declared a final dividend of 63 cents per share, bringing the total dividend for the year to 101 cents per share, a 16% increase from the previous year.
STADIO Holdings Limited reported strong financial results for the year ended 31 December 2024, with revenue increasing by 14% to R1.6 billion, driven by an 8% rise in student numbers. The company saw a 17% increase in EBITDA to R458 million, while profit after tax grew by 17% to R276 million. Core headline earnings rose by 28% to R267 million, with earnings per share (EPS) and headline earnings per share (HEPS) increasing by 26% and 28%, respectively. The company continued its expansion efforts, benefiting from an increased stake in Milpark Education and positioning itself for future growth with the development of a new Durbanville campus. Student enrolments showed strong momentum, with first-semester numbers growing by 10% and second-semester figures rising by 8%. STADIO declared a final dividend of 15.1 cents per share, a 51% increase from the previous year.
SA Economy:
The South African Reserve Bank (SARB) maintained the repo rate at 7.5%, opting for caution amid ongoing economic uncertainties. The SARB said that while inflation remains contained, it has edged higher, with goods inflation staying low but services inflation rising. The inflation outlook was influenced by VAT hikes and CPI reweighting, though lower fuel prices and electricity tariffs provided some relief. In February, inflation held steady at 3.2%, the highest in four months. The SARB projects headline inflation to average 3.6% in 2025 before rising to 4.5% in 2026. On the economic growth front, GDP expansion was weak at 0.6% in 2024, falling below expectations and slightly underperforming 2023. The 2025 growth forecast was revised downward to 1.7%, reflecting continued weakness in demand and supply-side challenges. The central bank remains cautious about policy adjustments, balancing inflation risks with the need to support economic recovery.
The value of building plans approved surged by 31.8% year-on-year to R6,171.1 million in January 2025, following a revised 13.8% increase in the previous month. Approvals for non-residential buildings jumped by 79.7%, while permits for additions and alterations rose by 35.5%. Residential building permits also saw an 18.2% increase, driven by a 47.6% rise in flats and townhouses and a 7.4% increase in dwelling houses. Among larger municipalities, building plan approvals grew notably in the Western Cape (78.8%), KwaZulu-Natal (90.4%), and Mpumalanga (189.3%).
Global Economy:
The Bank of England (BoE) voted 8-1 to keep the Bank Rate at 4.5% , as expected. One member suggested a 25bps reduction to 4.25%.The central bank signaled it would continue with a “gradual and careful” strategy, maintaining its stance until further evidence of economic progress emerges. The decision followed data showing unemployment remained at 4.4% and wage growth slowing.
The MPC noted significant progress on disinflation over the past two years, helped by past external shocks fading and monetary policy curbing inflation. However, global trade and geopolitical uncertainties have risen.
Global Company:
The FTSE 100 closed 0.64% lower at 8 646.
JD Sports fell more than 4% after Nike reported a 9% drop in Q3 sales on Thursday, while miners Antofagasta and Glencore lost more than 4% and 3%, respectively, as metal prices declined.
Asian markets are fluctuating between losses and gains, as caution prevailed ahead of US President Donald Trump’s next round of tariffs as the April 2 deadline approaches.
The Hang Seng Index is trading 0.2% lower at 23 637.
In China, the Shanghai Composite is down 0.42% at 3 348.
The Dow Jones Industrial Average closed 0.08% higher at 41 985, while the S&P 500 closed 0.08% higher at 5 667. For the week, the S&P 500 was slightly up, the Dow rose 0.7%, and the Nasdaq was flat.
FedEx fell 6.4% after the company cut its earnings outlook amid industrial weakness, while Nike dropped 5.5% on lower sales projections.
Commodities:
Gold is trading lower by 0.17% at $3 022/oz, while Platinum is lower by 0.28% to $982/oz.
Brent crude was 0.11% lower at $72.15 a barrel.
Currency:
The rand traded at R18.21 against the US Dollar, R23.55 against British Pound and R19.73 against the Euro.
The Euro is slightly firmer against the US Dollar to trade at $1.0831.
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| Market Indicators | |||||||
| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 3022.35 | -0.17% | USD/ZAR | 18.21 | Top40 | 82093.69 | 0.00% |
| Platinum | 982.05 | -0.28% | GBP/ZAR | 23.55 | Dow 30 | 41985.35 | 0.08% |
| Brent | 72.15 | -0.11% | EUR/ZAR | 19.73 | S&P 500 | 5667.56 | 0.08% |
| Copper | 5.13 | 0.78% | EUR/USD | 1.0831 | FTSE | 8646.79 | -0.64% |
| Palladium | 965.19 | 1.57% | USD/JPY | 149.71 | DAX | 22891.68 | -0.47% |
| Iron Ore | 101.70 | 2.21% | BITCOIN | 87096.25 | Shanghai | 3348.23 | -0.42% |
| Source: FACTSET | |||||||