Taking Stock - Prosus announced an update

In todays taking stock, we look at how the Prosus announced an update to its share repurchase programme.

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MARKET COMMENTARY

SOUTH AFRICAN MARKET COMMENTARY

Stocks on the JSE reversed some gains in the first fall since the beginning of the year, as rising coronavirus cases and the continued lockdown hurt sentiment. South Africa has recorded more than 1.2 million COVID-19 cases and more than 33,000 deaths, the most on the African continent, but is yet to start its vaccination drive. The cabinet recently decided to maintain "level 3" lockdown restrictions, with relatively minor tweaks. The benchmark JSE All-Share index dropped 0.35% (now at 63,535 index points) while the blue-chip JSE Top 40 companies index ended down 0.38%.

 

 

EUROPEAN MARKET COMMENTARY

European stocks closed mixed on Tuesday as investors remain focused on the latest coronavirus developments and the state of US politics. The pan-European Stoxx 600 closed just a touch above the flatline Tuesday, with autos stocks adding 1.7% while utilities shares dropped 1.5%. In terms of individual share price movement yesterday, Swiss online pharmacy Zur Rose Group surged 14.9% after Bank of America initiated the stock at a “buy” recommendation.

 

 

US MARKET COMMENTARY

US stocks rose slightly yesterday as interest rates continued their ascent amid increasing prospects for more coronavirus stimulus from lawmakers under the incoming Biden administration. Bank stocks contributed to Tuesday’s slight gains. Goldman Sachs and JPMorgan Chase were up 2.5% and 1.7%, respectively. Rates have been on the rise since Democrats secured majorities in both the House and Senate, opening up the door for additional fiscal stimulus. Last week, President-elect Joe Biden promised an economic stimulus rollout, which he said will be “in the trillions of dollars.”

 

 

ASIAN MARKET COMMENTARY

Stocks in Asia were mixed this morning as investors watch for developments on the coronavirus front. The Japanese government is set to expand the state of emergency to more areas, according to local media reports. Meanwhile, local Chinese authorities in regions near Beijing are stepping up restrictions on social activity following a rise in new coronavirus cases. Hong Kong-listed shares of Lenovo jumped more than 11% after the firm announced a proposed issuance and admission of Chinese depositary receipts on the Shanghai Stock Exchange’s Science and Technology Innovation Board.

 

 

CURRENCY MARKET COMMENTARY

The rand recovered on Tuesday, bouncing off a two-month low hit in the last session, as a recent rally in the dollar cooled. At the close, the rand traded at R15.20 versus the dollar, 0.18% firmer than its previous close. The currency has tumbled more than 5% since the beginning of 2021. Emerging market assets have been under pressure in the last week from continued dollar strength and US higher yields, which are seen as a negative. Sentiment also soured badly over a new peak in daily coronavirus infections and doubts over South Africa's vaccine supplies.

 

 

COMMODITIES MARKET COMMENTARY

Gold prices edged up this morning as a recent rally in the US dollar and Treasury yields hit a pause, while rising coronavirus cases worldwide also boosted appeal for the safe-haven metal. Global coronavirus infections rose to more than 91 million, with several Asian and European countries enforcing stricter restrictions to curb the spread of the virus. Oil prices rose today, with US crude gaining for a seventh day, after an industry report showed a further drop in inventories and investors shrugged off worsening developments in the pandemic.                    

LOCAL COMPANIES

Prosus (PRX) -1.4%

The group announced an update to its share repurchase programme of Prosus ordinary shares and its share purchase programme of Naspers N ordinary shares announced on 23 November 2020. As part of the Share Repurchase, Prosus repurchased 1 186 760 Prosus ordinary shares N at an average price of €87.5005 per share for a total consideration of €103 842 035.32 (US$127 415 286.07). Considering the regulatory requirement to provide weekly updates on Prosus ordinary shares N repurchased, the company decided to also provide voluntary updates on the Naspers N ordinary shares purchased. For the period between 4 January 2021 and 8 January 2021, Prosus purchased 493 339 Naspers N ordinary shares at an average price of ZAR3 066.2816 per share for a total consideration of ZAR1 512 716 276.55 (US$99 475 461.54).

 

Stenprop (STP) +1.7%

Stenprop shareholders are referred to the circular and the announcement issued on Thursday, 17 December 2020 in respect of an election to receive the interim dividend of 3.375 pence per share for the six months ended 30 September 2020, either as a cash dividend or as a scrip dividend. South African shareholders are advised that the exchange rate for the dividend will be R20.8750 to a pound, as obtained by the Company on Monday, 11 January 2021, resulting in a gross local dividend amount of R70.4531 cents per share. Accordingly, shareholders who do not elect to receive new ordinary shares pursuant to the scrip dividend will be paid a cash dividend.

               

INTERNATIONAL COMPANIES

Boeing (BA) +0.8%

Boeing ended its worst year in more than 40 years with its best month of 2020. The company reported that it delivered 39 jets to customers in December -- and deliveries are important because that's when Boeing gets most of the money owed for a plane. But that doesn't change the full year or near-term outlook for Boeing, which is struggling to recover from the dual crises of the 737 Max grounding and the pandemic-fuelled plunge in air travel. The company has been slashing production rates and cutting staff in response to the financial crisis hitting its airline customers. That comparatively stellar December delivery figure brought Boeing's total 2020 deliveries to only 157, the lowest figure for the aircraft maker and its predecessor companies since 1977. By contrast, Boeing delivered a record 806 commercial jets as recently as 2018, helping to lift annual revenue above the $100 billion mark for the first time that year. Now analysts forecast Boeing will report revenue of only $58 billion in 2020, and $78 billion in 2021. Notably, Boeing was able to deliver 27 737 Max jets in December, the first deliveries of the troubled aircraft since its grounding of the plane in March 2019 following two fatal crashes.

 

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Media, Sasfin Wealth

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