The JSE started the new week trading firmer and added 1.17% while global peers remained mixed with traders worried about slowing economic growth and elevated inflation. The local bourse may have also benefited from an announcement by ratings agency S&P Global, which changed SA’s outlook from ‘neutral’ to ‘positive’ late on Friday.
The All Share Index is at 68,367 points while the Top 40 added 1.29% to sit at 61,787points.
In company news, Barloworld (-6.81%) said it had written down R1 billion in the value of its Equipment Eurasia business following Russia’s invasion of Ukraine. Barloworld released its interim results for the six months ended March 2022 on Monday where it reported a 14% increase in revenue from continuing operations while “normalised” headline earnings had doubled for the period.
Hospital group Netcare (-3.0%) reported a 2% increase in revenue, up to R10.3 billion for the six months ended March 2022. Netcare said adjusted headline profit had increased 29% while an interim dividend per share of 20 cents was also reported.
In a trading update, Alexander Forbes said its profit from continuing operations is expected to increase between 5% and 10% for the six months ended March 2022 compared to the R659 million during the same period the previous year.
The company’s share price fell more than 3% after the trading update was released before closing 3.41% down for the day.
In the currency markets, the rand enjoyed some US dollar weakness today with the local unit trading all the way down to R15.65/$.
“We expect the currency to run into some headwinds as any move lower will be met by some resistance. Most of the other EM currencies traded in the same direction as the rand, which purely makes this a US dollar play, and no new momentum is coming for the Rand itself. We will await the US Fed minutes on Wednesday as the big momentum giver for the week,” comments forex trading house TreasuryONE.
On the commodity front, it was a relatively flat day while during the morning session all the commodities were in the green. Gold is trading at $1,852, platinum at $958, and palladium at $1,996 per ounce. Brent crude is keeping above the $110 level and currently trading at $112.24 a barrel.
