Daily Report 31 October 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.1% lower at the 66 385 level, mainly pushed lower by tech stocks, tracking weakness in Hong Kong tech companies. Naspers fell 6.28% to R1 760 and Prosus was lower by 5.03% to R744.40.

Glencore PLC said in a trading update that copper production fell 14%, while production of zinc fell 18%, lead fell 21%, gold fell 15% and silver fell 25% for the first nine months of the year. The company blamed a number of issues for its performance, including extreme weather in Australia, industrial action at nickel assets in Canada and Norway and supply-chain issues in Kazakhstan due to Russia’s war in Ukraine.

Renergen Limited reported interim financial results for the six months ended 31 August 2022. The company said that revenue remained the same as the prior corresponding period at R1.2 million. The operating loss before taxation increased by 9.9% to R30 million from an operating loss of R27.3 million in the prior corresponding period and headline loss per share decreased by 8.3% to a headline loss of 19.31 cents per share, from a headline loss of 21.05 cents per share in the prior corresponding period.

EOH said that the company will soon launch a rights offer worth up to R500m with the aim of cutting its debt almost in half. EOH has a debt pile of R1.2bn and has been battling to regain credibility after a corporate scandal stemming from questionable dealings with state clients.

Balwin Properties Ltd. reported results for the six months ended 31 August 2022. It said that headline earnings per share increased 47% to 36.63 cents per share. Profit for the period increased 48% to R173 million. Balwin declared a final dividend of 9.9 cents per share.

MTN Nigeria reported results for the nine months ended, stating that profit before tax grew 24.7% to N400.7 billion, mobile subscribers increased by 9.7% to 74.1 million and service revenue increased by 20.6% to N1,452.7 billion.

 

SA Economy:

The Catering and Allied Workers Union (SACCAWU) has promised to pursue an indefinite nationwide strike if retailer Makro fails to improve a current wage increase.

The private sector credit growth increased by 9.74% year-on-year in September 2022, topping market expectations of 8.15% and following a 7.86 percent growth a month earlier.

 

​Global Economy:

Germany’s economy grew by 0.3% on quarter in the three months to September 2022, following a 0.1% expansion in the previous period and beating market expectations of a 0.2% contraction.

Germany’s consumer price inflation rose to 10.4% year-on-year in October 2022, a new all-time high and above market expectations of 10.1%, lifted by euro weakness.

China’s manufacturing PMI declined to 49.2 in October from 50.1 in September indicating a general slowdown in the production and operating activities of Chinese enterprises due to COVID-19 infections and lockdowns in several cities.

 

Global Company:

The FTSE 100 closed 0.37% higher at 7 047. Glencore dropped more than 1% after warning of a drop in second-half earnings for its trading unit.

The Hang Seng Index is lower by 0.1 % to 14 842.

In China, the Shanghai Composite is down 1% to 2 887, remaining under pressure as the latest Chinese PMI data pointed to further economic weakness.

The Dow Jones Industrial Average rose by 2.59% to 32 861, while the S&P 500 climbed 2.46% to 3 901.

Elon Musk completed his takeover of Twitter and fired top executives.

Apple shares gained over 7% after the iPhone maker topped analysts’ estimates for revenue and profit. Apple announced earnings per share of $1.29 on revenue of $90.10.

 

Commodities:

Gold is down 0.94% to $1 644/oz, while Platinum is lower by 1.71% to $941/oz.

Brent crude was 1.11% lower at $92.96 a barrel.

 

Currencies:

The rand traded at R18.20 against the US Dollar, R21.12 against British Pound and R18.14 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $0.9960.