Daily Report 23 April 2026

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.29% lower at the 118 068 level.

Sasol reported a solid operational performance for the nine months to 31 March 2026, supported by stronger operations in Southern Africa. Local production benefited from better coal quality, higher coal output, and improved gasifier availability, while Natref increased production due to strong fuel demand linked to energy‑security concerns. Despite some plant outages in the third quarter, Secunda production was 8% higher than a year earlier. In Mozambique, widespread flooding disrupted condensate logistics and forced lower gas production. At ORYX GTL, operations were shut down in early March because of gas supply disruptions, resulting in significantly lower output and an uncertain restart timeline. Sasol’s chemicals business remained resilient, with Chemicals Africa revenue rising quarter‑on‑quarter and broadly stable international performance, supported by better pricing in the US and higher sales volumes in Eurasia. Looking ahead, Sasol said its FY26 guidance is largely unchanged, though it now expects higher fuel sales volumes, lower gas production, and reduced capital spending following continued capital optimisation. Management also noted that working capital pressures have increased due to geopolitical disruption and warned that ongoing global volatility remains a key risk for the rest of the financial year.

Clicks Group reported a resilient interim performance for the six months to February 2026, with group turnover rising 7.4% to R24.9 billion and trading margin maintained at 9.1%, despite constrained consumer spending and temporary systems disruptions.  Earnings growth remained solid, as diluted headline earnings per share increased 8.1% and return on equity reached a strong 45.7%, supported by disciplined cost control and share buybacks.  The group continued to strengthen its market position, expanding its footprint to 1 003 stores and 795 pharmacies, while Clicks ClubCard membership grew to 12.9 million, accounting for 83.7% of sales.  Reflecting robust cash generation, Clicks declared an interim dividend up 8.4% to 258 cents per share and reiterated a cautious outlook, noting that rising fuel prices and geopolitical risks are expected to keep pressure on consumer demand in the second half.

In a trading update from Cashbuild, the company reported a solid 9% increase in group revenue for the third quarter of FY2026, with growth driven by both existing stores, which contributed 4%, and 16 new stores, which added a further 5%, resulting in 5% revenue growth year to date.  Comparable store revenue rose 6% for the quarter, supported by higher customer activity as till transactions increased 8%, while selling price inflation remained modest at 0.6% year on year.  Performance across operating segments was mixed, with Cashbuild South Africa delivering strong growth, while results in other regions were impacted by store closures and the disposal of the Malawi operation.  During the quarter, the group continued to optimise its footprint by opening one new store and closing six underperforming stores, leaving 317 stores trading at quarter-end.

SA Economy:

The annual inflation rate edged higher to 3.1% in March 2026, from 3.0% in the previous month, in line with market expectations. During March, the impact of the Middle East conflict had only begun to feed through to domestic prices. The main upward contributors to inflation were housing and utilities, which rose to 5.1% year-on-year (from 4.8% in February), food and non-alcoholic beverages at 3.6% (slightly down from 3.7%), and insurance and financial services, which increased to 4.6% (from 4.5%). Meanwhile, transport prices continued to decline but at a slower pace, contracting by 1.6% year-on-year compared with -2.1% previously. Core inflation, which excludes food, non-alcoholic beverages, fuel, and energy, rose to 3.2%, up from a seven-month low of 3.0% in the prior month. On a month-on-month basis, headline CPI increased by 0.6%, following a 0.4% rise in February.

Retail sales increased by 1.6% year-on-year in February 2026, slowing sharply from an upwardly revised 4.4% expansion in January and falling well short of market expectations for a 4.8% increase. This was the weakest growth in retail activity since September 2024, reflecting a broad-based deceleration across several categories. Growth in textiles, clothing, footwear, and leather goods moderated significantly to 3.9%, from 9.7% in the prior month, while sales of hardware, paint, and glass slowed to 0.1%, from 1.9%. In addition, weaker performance was recorded in food, beverages, and tobacco, with sales declining further in specialised stores (-5.0% versus -6.1%) and turning negative among general dealers (-0.9%, from 2.4% previously). On a seasonally adjusted month-on-month basis, retail trade contracted by 1.0%, following a 0.9% increase in January. Over the three months ended February 2026, retail sales rose by 2.8% compared with the same period a year earlier.

Global Economy:

US crude inventories rose 1.93 million barrels to 465.7 million in the week to April 17, against expectations for a 1.2 million draw, with Cushing stocks up 806 000. Refinery runs and utilization edged lower, while gasoline and distillate stocks posted larger‑than‑expected draws. Net crude imports increased by 1.21 million bpd.

Euro Area consumer confidence fell 4.3 points to -20.6 in April 2026, the lowest since December 2022, amid economic uncertainty and higher energy costs. In the wider EU, sentiment dropped 4.2 points to -19.4, with confidence in both regions still well below long-term averages.

Global Company:

The FTSE 100 closed 0.21% lower at 10 476, extending its losing streak to a third session as investors remained cautious amid uncertainty around US–Iran talks, rising inflation, and mixed company results. Reckitt Benckiser weighed heavily on the index, falling more than 4% after missing earnings expectations, while JD Sports dropped 2.8% following news that its chairman will step down. Rolls‑Royce and BAE Systems also declined, and major banks including HSBC, Barclays, and NatWest traded lower. These losses were partly offset by gains in energy and mining stocks. BP and Shell rose as oil prices stayed elevated, while Rio Tinto, Antofagasta, and Anglo American gained around 2%. Fresnillo also edged higher after maintaining its production guidance.

The Hang Seng Index is trading 1.02% lower at 25 898 as investors turned more cautious ahead of key economic data. Sentiment was mixed: while strong US earnings supported Wall Street, Asian markets remained restrained amid ongoing US–Iran geopolitical uncertainty and concerns about potential disruptions to energy flows through the Strait of Hormuz. Elevated oil prices continued to stoke inflation worries, keeping risk appetite in check. Locally, attention turned to Hong Kong’s March inflation data, due later in the day. Notable laggards included Tencent (-1.3%), AIA Group (-1.1%), Geely (-3.2%), Xiaomi (-1.5%), and Anta Sports (-1.1%).

In China, the Shanghai Composite is down 0.63% at 4 080.

The Dow Jones Industrial Average closed 0.69% higher at 49 490, while the S&P 500 closed 1.04% higher at 7 137. The rally was driven by strong corporate earnings and renewed risk appetite after the ceasefire extension, following two days of losses. Chipmakers extended their rally for a 16th straight session, the longest winning streak on record. Boeing climbed on solid first‑quarter deliveries. After the close, Tesla jumped after beating earnings expectations, with profits up 17% and revenues rising 16%. Intel gained 3% after Elon Musk said Tesla plans to use Intel’s 14A process, while IBM and CSX also moved higher in late trading.

Commodities:

Gold is trading lower by 1.3% at $4 704/oz, while Platinum is lower by 1.88% to $2 043.25/oz.

Brent crude was 5.32% lower at $102.95 a barrel.

Currency:

The rand traded at R16.54 against the US Dollar, as market participants digested the latest inflation data while continuing to monitor geopolitical developments that could influence the interest rate outlook, R22.31 against British Pound and R19.35 against the Euro.

The Euro is slightly weaker against the US Dollar to trade at $1.1702.

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