The Week Ahead

The Week Ahead

3-7 March

The Rand

The South African rand (ZAR) has been primarily influenced by global economic factors and local developments this last week. The USD/ZAR exchange rate has fluctuated between a high of 18.51 and a low of 18.30 over the past week. The strength of the U.S. dollar has been a significant factor affecting the rand, as a stronger dollar typically makes the rand weaker by increasing the cost of imports and reducing demand for South African exports.

The rand's performance has also recently been influenced by local economic factors, including the delayed national budget presentation. Initially, this delay caused some volatility, but the rand has since recovered as focus shifted to other global events like the G20 meeting in Johannesburg.

Commodities

Gold prices have been under pressure this week due to several significant factors. One key driver has been the strengthening of the U.S. dollar, which typically makes gold less attractive to investors. A stronger dollar increases the cost of gold for foreign buyers, reducing demand and leading to price declines. This dynamic plays a critical role in shaping gold's performance in international markets, especially during times of currency volatility.

Another factor impacting gold prices is the rise in U.S. Treasury yields. Higher yields make yield-generating assets, such as bonds, more appealing compared to non-yielding assets like gold. As investors shift their focus toward these alternatives, demand for gold diminishes, further pressuring prices downward. This inverse relationship between Treasury yields and gold prices has been a consistent trend in financial markets, reflecting the competition between safe-haven assets and income-generating investments.

Oil prices have also faced downward pressure this week due to global economic uncertainty and supply-demand dynamics. Concerns over a potential U.S. economic slowdown and tariff threats have dampened market sentiment, reducing expectations for fuel demand. Additionally, the possibility of increased oil supply from OPEC+ in April and hopes for eased sanctions on Russia have contributed to bearish market sentiment. Despite some supply risks, such as reduced Russian oil flows due to geopolitical tensions, these have been offset by factors like increased output from other producers, leaving oil markets volatile and under pressure.

Companies

MTN Group Limited: in its FY24 trading update, expects HEPS to be between 66.00c and 129.00c, lower as compared with 315.00c recorded in the prior year.

Harmony Gold Mining Company Limited: in its trading and operational update for the six months ended 31 December 2024, expects EPS to be between 1,182.00c and 1,355.00c, higher as compared with 956.00c recorded in the previous year.

Impala Platinum Limited: 1H25 results showed diluted EPS of 207.00c, which compares with 180.00c recorded in the previous yar.

The Spar Group Limited: in its trading update for the 18 weeks ended 31 January 2025, revealed that group turnover declined 1.6% as compared with the previous year.

KAP Limited: 1H25 results showed diluted EPS to have decreased 24.3% from the same period of the prior year to 15.90c.

Anheuser-Busch InBev S.A./N.V.: FY24 results, showed EPS of $2.92, compared with $2.65 recorded in the previous year.

Bid Corporation Limited: 1H25 results, showed diluted EPS decreased 2.0% from the same period of the prior year to 1,117.20c.

AECI Limited: FY24 results showed a diluted loss per share of 266.00c, which compares with EPS of 1,092.00c recorded in the previous year.

Hammerson Plc: in its FY24 results showed basic and diluted loss per share of106.00p, which compares with 10.30p recorded in the previous year

African Rainbow Minerals Limited: in its 1H25 trading update, expects EPS to be between 670.00c to 732.00c, higher as compared with 620.00c recorded in the previous year.

Grindrod Limited: in its FY24 business and trading update, expects EPS to be between 44.10c to 50.10c, lower as compared with 148.00c recorded in the previous year.

Curro Holdings Limited: in its FY24 trading update, expects EPS to be between 15.20c to 22.20c, higher as compared with 7.00c recorded in the previous year.
Sasol Limited: interim results for the six months ended 31 December 2024 showed diluted EPS fell 47.1% from the prior year to R7.18.

Altron Limited: in its trading update for the year ended 28 February 2025, expects HEPS from continuing operations will be at least 40.0% higher as compared with 103.00c reported for the prior year.

Cashbuild Limited: in its trading update for the 26 weeks ended 29 December 2024, expects to report EPS of between 529.80c and 556.90c, compared to 14.00c reported in the same period of the prior year.