The Week Ahead

The Week Ahead

6-10 May

The Rand

The rand has strengthened against a weakening dollar, due to softer than expected US economic data. The US Federal Reserve held interest rates steady as expected, although dovish commentary from Jerome Powell saw the greenback depreciating against a broad basket of currencies. Worse than consensus US Non-Farm Jobs as well as Unemployment Rate data furthered the dollars decline.

The absence of load-shedding has also boosted domestic manufacturing, helping the rand strengthen against major currencies.

Despite softer-than-expected local data this last week, the USD/ZAR closed around its lowest level this year so far.

Commodities

A softer dollar has supported precious metal prices at the start of the new month.

Industrial metals copper and iron ore have seen a minor retacement in May after significant gains in the preceding month. The near term decline suggests some profit taking amidst low volume trade, as Chinese markets remain closed on the back of Labour Day holidays. Trade will resume on Monday the 6th of May.

Crude prices have also slipped at the start of the new month, as oil markets also trade thinly ahead of OPEC+ production announcements, and while ceasefire talks in the Middle East ease supply concerns.

Companies

Sasol Ltd: announced that Chief Financial Officer (CFO) and Executive Director, Mr Hanré Rossouw will step down on 31 October 2024.

Life Healthcare Group Holdings Ltd: in its operational update for the six-month period ended 31 March 2024, guided that group revenue increased between 7.0% to 8.0%, driven by robust activity growth in southern Africa and higher sales in Neuraceq doses.

DataTec Ltd (SA): in its FY24 trading update, guided EPS to have improved to a range of between 19.00 and 21.00 US cents, from 7.90 US cents in the prior year.

Gold Fields Ltd: announced the appointment of Mr. Alex Dall as Interim Chief Financial Officer (CFO), with effect from 1 May 2024, following the early retirement of CFO and Executive Director, Mr. Paul Andy Schmidt.

Harmony Gold Mining Co Ltd: in its operational update for the nine months ended 31 March 2024, guided that total gold production increased 10.0% and gold revenue increased 26.0%, while group all-in sustaining costs (AISC) declined 2.0% to R877,965kg.

Impala Platinum Holdings Ltd: in its production update for the period ended 31 March 2024, guided that Group 6E production increased by 13.0% to 827,000 ounces.

Afrimat Limited: has completed the acquisition of certain assets and a right to mine select deposits at the Glenover mine, as well as the option to acquire 100% of the shares in Glenover Phosphate Proprietary Limited from the current shareholders.

Astral Foods Ltd: in its trading update for the six months ended 31 March 2024, expects HEPS to be between 874.00c and 891.00c, which compares with 163.00c in the previous year.

Raubex Group Ltd: in its further trading update for the year ending 29 February 2024, expects HEPS to be between 451.70c and 491.00c, as compared with 392.80c reported in the prior year.