South African News and Market Update: Discovery Bank targets one million accounts by June

 South African News and Market Update: Discovery Bank targets one million accounts by June

South African News and Market Update.

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The local stock market fell, led by a decline in South Africa Inc. shares, commonly referred to as banking, retail and property stocks, which are dependent on the local economy. However, part of the decline was offset by a rise in the share prices of some commodity and resource companies, particularly gold miners. The benchmark All-Share index closed down 1.92% at 73,296 points and the blue-chip Top 40 index closed down 1.78% at 67,144 points. The biggest losers among blue-chip companies were the country’s five largest banks, whose banking index fell by more than 4%.

The rand recouped much of the previous day’s losses in afternoon trading Monday, as strong commodity prices supported the currency amid concerns about the impact of the Ukraine-Russia conflict on inflation and the global economy. At the close of trading, the rand was trading around R15.37 against the dollar, 0.14% firmer. On the data front, this week’s focus is on fourth-quarter 2021 gross domestic product data, which will be released later today, and January mining and manufacturing data on Thursday.

Gold prices slipped from the key $2,000 per ounce level this morning as the U.S. dollar held near a multi-month high, while palladium retreated from record highs after investors took a breather as talks between Russia and Ukraine made little progress. Meanwhile, oil prices hovered near 14-year highs today as the United States considered going it alone to ban Russian oil imports instead of joining forces with allies in Europe, easing fears of a major crude supply disruption.

MASSMART HOLDINGS LIMITED – Results

Daily Market 360 Massmart’s total sales of R84.9 billion in the 52 weeks to 26 December 2021 represent a decrease of 1.9% compared to the same period in 2020, while like-for-like sales increased by 1.7% in the same period. Gross margin decreased by 191 basis points to 18.5%. Excluding inventory write-downs due to the unrest, gross margin decreased 45 basis points to 19.9%.

Expenses decreased by 1.2% as a result of our sustained cost reduction initiatives. Other income increased 280.9% to R1.1 billion and primarily related to insurance proceeds from property damage and business interruption related to the civil unrest. This resulted in a trading profit of R195.4 million, a decrease of 83.3% from the previous year.

Discovery Bank targets one million accounts by June

One of South Africa’s newest banks is aiming to increase the number of its accounts to 1 million by June. Digital lender Discovery Bank saw a 31% increase in customer accounts to 850,000 in the first half of the year to December and is now aiming to add another 18% in six months. “That would really be a significant milestone for the company and I think reflects the fact that we are really gaining scale,” Chief Executive Officer Hylton Kallner said in an interview. The bank was founded in November 2018 by Johannesburg-based insurer Discovery Ltd. with the aim of using internet-based technology to compete with more established rivals.

Mandy Nunes

https://gvmarkets.com/

Mandy Nunes is the Chief Marketing Officer for GV Markets. With 15 years of experience in the Financial Services Industry within the South African market, she has held various responsibilities within the business development, marketing, operations and regulatory space – leading to a very fitting position within the Trading and Investment environment. Mandy has notably been the editor of 'The Ordinary Millionaire', along with having written numerous pieces within the industry at large. Holding both legal and wealth management qualifications, her goal is to bring about massive success for, and within, GV Markets. GV Markets is a South African forex and CFD broker that offers comprehensive trading solutions to both retail and professional traders. GV Markets prides itself in being a well-regulated and reputable STP brokerage that works according to a No-Dealing Desk trading model, offering traders access to some of the best liquidity providers in the country.

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