Election Results Impact on Markets
- Slow ballot counting with three ballots, 18.7% counted.
- CSIR prediction at 5%: ANC 42%, DA 22%, EFF 9%, MK 14%, Patrick Alliance 2%.
- Market concerns about ANC forming a coalition.
- Rand fluctuations: From 18.34 on Tuesday to 18.61 currently.
Rand | 1pm 30 May 2024
Pepkor Results:
- 9.5% revenue growth.
- 24.5% growth in fintech, now 12% of the business.
- Pepkor sells 7 out of 10 smartphones in South Africa.
Woolies (Woolworths) Update:
- Earnings down 20% for the year ending June.
- Challenges in the clothing segment, further deterioration in footfall and discretionary spend.
- Food segment performing better, but overall market reaction negative.
Zeda Results:
- Revenue growth of 19%, HEPs up 12.5%, return on equity at 28.5%.
- Surprise 50 cents dividend despite previous year-end dividend expectations.
BHP Billiton and Anglo American Merger
- BHP walked away from the Anglo-American takeover proposal.
- Speculation about potential offers from Rio Tinto or Glencore.
- Anglo-American’s disinvestment plans for De Beers and Anglo Platinum.
Market Insights
- Discussion on Metrofile’s challenges with dividend yield falling and pressure on share price.
- SAB Cap Investments’ exit from Metrofile.
- South African Reserve Bank MPC rate announcement: No rate changes expected.
- Upcoming central bank meetings: ECB, FOMC, Bank of England, Swiss National Bank.
- Potential for future rate cuts in South Africa if inflation targets are met.
Commodity webcast with Johann Erasmus available on Just One Lap.
- Insights into gold, PGMs, and copper.
- Mention of the cheaper gold ETF from 1nvest compared to Absa GLD.
Changes in 10X ETFs: Local Dividend Aristocrat and Smart Beta merging into a Top 50 ETF.
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JSE – The JSE is a registered trademark of the JSE Limited.
JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.
