South African News and Market Update: Woolies food division growth slows, and more

 South African News and Market Update: Woolies food division growth slows, and more

South African News and Market Update.

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The benchmark All-Share index closed 0.07% higher at 76,233 points and the blue-chip Top 40 index closed 0.11% higher at 69,587 points. Higher precious metals prices boosted the Johannesburg Stock Exchange, but a decline in stocks linked to the local economy, such as banks, industrials and property counters, kept the run and indices in check. Harmony Gold was the best performing company among the top 40, having gained 9.10% during the day. It was closely followed by Gold Fields and Anglogold, which gained 8.28% and 8.09%, respectively.

The rand advanced on Thursday, extending its strong gains from the previous day as inflation figures bolstered the case for a central bank rate hike next week. At the close of trading, the rand was trading around R15.24 against the dollar, 0.61% firmer.

Gold prices were cautious this morning, on track for a second straight weekly advance as investors turned to safer assets in anticipation of signals of a rate hike by the Federal Reserve next week. Meanwhile, oil prices fell early today after rising to seven-year highs this week as a surge in U.S. crude and fuel inventories prompted investors to take profits from the rally.

Woolies food division growth slows

Although the food division of JSE-listed Woolworths has traditionally been the group’s most resilient and best performing division, growth has slowed significantly. This is according to Woolworths’ latest trading report for the 26 weeks to December 2021, released on Thursday morning. The retailer is best known for its grocery division in South Africa, which has been the company’s star performer. However, the latest revenue and sales figures for the first half of the year show that the group’s historically weak fashion, beauty and homewares (FBH) business has managed to grow faster than Woolies Food.

Stor-Age raises R575m to fund further UK acquisitions

On Thursday, self-storage real estate investment trust Stor-Age announced the acquisition of a portfolio of four additional properties in the UK, largely funded by its successful R575 million rights issue on the JSE. The rights issue, which was also announced and closed on Thursday, was significantly oversubscribed. Stor-Age had originally sought an accelerated capital increase of R550 million. According to the company, the new capital was raised at a price of R14.30 per share, representing a 0.92% discount to the 30-day volume-weighted average share price.

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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