South African News and Market Update: OLD MUTUAL LIMITED – Review of annual results

 South African News and Market Update: OLD MUTUAL LIMITED – Review of annual results

South African News and Market Update.

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The benchmark All-Share Index closed down 1.84% at 70,628 points, continuing its slide since its record high of 77,536 points on March 2. The top 40 blue-chip index closed down 1.84% at 64,292 points. Shares of Chinese tech giant Tencent, in which South African tech investor Naspers has a large stake, fell for a third day in Hong Kong. Naspers fell 3.7%, while Prosus, the Amsterdam- and JSE-listed company through which Naspers holds as much as 28.8% of Tencent, slipped 6.4%. Naspers and Prosus together account for over 7% of the benchmark index.

The rand edged higher on Tuesday as market attention turned to this week’s Federal Reserve meeting, where a rate hike is expected. At the close of trading, the rand was trading around R15.09 against the dollar, 0.13% firmer. The U.S. Federal Reserve is set to raise interest rates for the first time since the pandemic at its meeting, which concludes later today, and traders are expecting clues about the pace of future rate hikes.

Gold prices were unchanged this morning, holding near a two-week low hit in the previous session as investors refrained from making big bets ahead of the Federal Reserve’s widely expected rate hike decision to curb rising inflation. Meanwhile, oil prices rebounded this morning after earlier falling more than $1 per barrel. Russia’s incursion into Ukraine continues to dominate volatile trading, with ceasefire talks the latest trigger for the market.

OLD MUTUAL LIMITED – Review of annual results

Gross inflows increased 4% to R194.8 billion due to strong inflows into Old Mutual Investments and Wealth Management. Life APE sales increased 16% to R11.4 billion due to a strong recovery in sales as a result of improved productivity levels. Despite the improved inflows, net customer cash flow decreased to R0.1 billion from R9.6 billion in 2020, mainly due to COVID -19 mortality claims in the life business and lower inflows year-on-year in Rest of Africa. In South Africa, our personal lines segments paid mortality claims of approximately R13 billion, continuing our commitment to support our customers in times of need. The value of new business (VNB) increased to R1.3 billion from R621 million in 2020 due to strong sales.


NEPS for the year ending 31 December 2021 is expected to be between 32% and 37% higher than the comparative period (‘the comparative period’), or between 119.1 and 123.6 cents per share, compared to 90.2 cents per share (restated from 89.8 cents per share) in the comparative period. Earnings per share are expected to be between 30% and 35% higher than the comparative period or between 119.1 and 123.7 cents per share compared to 91.6 cents per share (restated from 91.2 cents per share) in the comparative period.

Mandy Nunes

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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