Daily Report 22 April 2026

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.33% lower at the 118 412 level.

Capitec Bank Holdings Limited reported a strong financial performance for the year ended 28 February 2026, with operating profit before tax increasing by 25% to R22.2 billion and headline earnings per share rising by 23%, reflecting continued growth in earnings and profitability. Earnings per share increased by 22% and the total dividend per ordinary share rose by 23% to 7 980 cents, in line with Capitec’s policy of distributing 55% of headline earnings. Capitec also reported a solid strengthening of its balance sheet, with net asset value increasing by 17% to R59.5 billion, supporting ongoing growth while maintaining financial resilience. A final gross dividend of 5 360 cents per share was declared.

SA Economy:

Business confidence weakened sharply in March, with the South African Chamber of Industry and Commerce Index (SACCI) recording its largest month‑on‑month decline since the US imposed universal tariffs a year earlier, as heightened geopolitical tensions and market volatility unsettled sentiment. The index fell 3.3% to a five‑month low of 131.3 points, driven largely by a more volatile and weaker rand, falling JSE share prices, falling precious metal prices, and reduced import volumes, all of which reflected panic in financial markets following the escalation of the Iran war. The deterioration in confidence was closely linked to renewed inflation fears, particularly as oil prices remained above $90 a barrel, well above pre‑war levels, raising concerns about fuel supply and costs. SACCI noted that this environment has increased short‑term financial uncertainty, even as real economic activity continues to show only muted momentum. Despite the sharp monthly setback, the broader trend in business confidence remains positive, with the index still significantly higher than a year ago and the first‑quarter average comfortably above the same period in 2025.

Global Economy:

Germany’s ZEW Indicator of Economic Sentiment plunged by 16.7 points to -17.2 in April 2026, marking its lowest level since December 2022 and falling far short of market expectations of -5. This is the lowest level since December 2022, reflecting growing pessimism as the escalating Middle East conflict weighs on the economic outlook. ZEW’s president warned that the impact of the Iran war goes beyond higher prices, with fears of long‑term energy shortages hurting investment and limiting the effectiveness of government stimulus. Most sectors deteriorated further: sentiment weakened notably in chemicals and pharmaceuticals, steel and metal production, and construction, while the automotive sector remained deeply negative but relatively stable.

The ZEW Indicator of Economic Sentiment for the Euro Area dropped sharply by 11.9 points to -20.4 in April 2026, its lowest level since December 2022 and well below expectations of -3.6.

US retail sales posted their strongest monthly increase in more than three years in March 2026, rising 1.7%, surpassing market expectations of 1.4%, as a sharp spike in fuel prices linked to the escalating Iran conflict drove a surge in gasoline station sales and lifted overall consumer spending momentum.

The annual inflation rate in the UK rose to 3.3% in March 2026, up from 3% in each of the previous two months and in line with expectations. This was the highest reading in three months. The increase was driven in part by transport costs, which rose by 4.7%, the fastest pace since December 2022. Motor fuels, in particular, climbed by 4.9%, making the largest upward contribution, largely due to the impact of the war with Iran. The annual core inflation rate eased to 3.1% in March 2026, slightly less than both market expectations and February’s 3.2% reading.

Global Company:

The FTSE 100 closed 1.06% lower at 10 498. Defence stocks led the decline, with BAE Systems, Rolls‑Royce, and Babcock all sharply lower. Pharmaceuticals also weakened, as AstraZeneca and GSK fell, while other heavyweights including Unilever and British American Tobacco added pressure. Associated British Foods dropped after confirming plans to separate Primark. BP rose more than 1%, and utilities outperformed, with SSE and Centrica posting solid gains. Experian also advanced after naming Adam Crozier as chair designate.

The Hang Seng Index is trading 1.34% lower at 26 137, while other Asian markets were mixed, as investors remained cautious amid ongoing uncertainty around Middle East tensions. This was despite US President Donald Trump extending the ceasefire with Iran, as doubts persisted about whether the truce would hold and lead to a lasting resolution. Major tech names declined, with Alibaba down 3.4% and Tencent slipping 2.7%, weighing on the broader market.

In China, the Shanghai Composite is up 0.28% at 4 096.

The Dow Jones Industrial Average closed 0.6% lower at 49 149, while the S&P 500 closed 0.64% lower at 7 064. Apple was the biggest drag on the S&P 500, falling 2.5%, while Tractor Supply plunged 11.7%, the steepest decline of the session. In contrast, UnitedHealth Group surged 7% after beating first‑quarter expectations, issuing strong 2026 guidance, and announcing a $2 billion share buyback for the second quarter. After the close, Capital One, Interactive Brokers, and Intuitive Surgical all posted gains in after‑hours trading.

Commodities:

Gold is trading lower by 0.56% at $4 765/oz, while Platinum is lower by 0.19% to $2 081.65/oz.

Brent crude was 3.17% higher at $97.47 a barrel.

Currency:

The rand traded at R16.44 against the US Dollar, R22.23 against British Pound and R19.32 against the Euro.

The Euro is slightly weaker against the US Dollar to trade at $1.1751.

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