DEFICIT SURPRISES

Events that moved the market Live with confidence

Q2 2021: Signs of recovery

7 Apr 2021 8 Apr 2021 13 Apr 2021 13 Apr 2021 to sell 2% of SA crypto exchange Capitec clients hit by Covid Bitcoin hits all-time high liquidated Prosus plans to sell a 2% Capitec sees net credit Bitcoin jumps to an all- holding in Tencent, worth about Crypto exchange iCE3 initiates impairments rise 75% to time high as the mood in $15 billion, to institutional liquidation after suspending R7.36 billion for the year to end cryptocurrencies turn bullish investors, lowering its Tencent trading soon after it discovered February. It also saw a 25% before Coinbase Global stake to 28.9%. This could account discrepancies. iCE3 falloff in total loans advanced goes public. potentially be the biggest was established in 2013 and is and disbursements. Net income block trade on record. one of the oldest exchanges in has dropped 9%. the country.

Source: Reuters Source: Moneyweb Source: Moneyweb Source: Bloomberg

21 Apr 2021 5 May 2021 12 May 2021 12 May 2021 Palladium at new peak SA budget deficit surprises Tesla makes U-turn on Bitcoin US inflation soars to 4.2%

The price of palladium, used SA records a shortfall of 11.2% Musk cites concerns about to curb emissions, surpasses of GDP, on its main budget for ‘rapidly increasing use of The annual inflation rate in the the previous record set in the year through March 2021, fossil fuels for Bitcoin mining’ US soars to 4.2% in April from February 2020. Prices have compared to the estimate for a and Tesla suspends vehicle 2.6% in March and well above climbed more than 17% this gap of 12.3% of GDP presented purchases using Bitcoin. Bitcoin market forecasts of 3.6%. year, building on five straight during the Budget speech. mining is consuming 66 times It is the highest reading annual gains. more electricity than in 2015. since September 2008.

Source: Bloomberg Source: Bloomberg Source: BBC Source: Trading Economics

14 May 2021 14 May 2021 17 May 2021 18 May 2021 Sasol sells Mozambique TFG flags 85% profit drop SA launches phase 2 Heineken eyes Distell gas stake vaccinations Hurt by Covid-19-led lockdowns After years of speculation of Sasol agrees to sell a 30% stake across its markets, TFG flags launches phase a possible deal between the in a natural gas pipeline running an up to 85% decline in two of its vaccine rollout with world’s second largest beer from Mozambique to South full-year profit. the aim of inoculating five group Heineken and South Africa. The deal is part of an million citizens aged over Africa’s Distell, the two groups accelerated asset-sale program 60 by the end of June. announce they’ve entered to reduce debt. into discussions.

Source: Bloomberg Source: Reuters Source: Reuters Source: Moneyweb Continued ...

Q2 2021: Signs of recovery

20 May 2021 25 May 2021 1 Jun 2021 4 Jun 2021 Repo rate stays at 3.5% Eskom sheds debt SA unemployment at 32.6% US jobs coming back

The South African Reserve Minister Gorhan announces South Africa’s unemployment The US unemployment rate Bank (SARB) announced the that Eskom has reduced its rate rises to a new record high fell to 5.8%, slightly better than repo rate will stay at 3.5%. debt by almost a fifth after of 32.6% in the first quarter of expected and below April’s The MPC’s vote was repaying matured loans and 2021. Most of the job losses 6.1%. Hospitality again led job unanimous. Nevertheless, benefiting from a strong were in construction. creation, with 292 000 the SARB warns of possible exchange rate. new positions. rate hikes later this year.

Source: National Treasury Source: Bloomberg Source: Statistics SA Source: CNBC

5 Jun 2021 8 Jun 2021 10 Jun 2021 22 Jun 2021 G7 agrees on minimum tax SA economy in recovery SA allows 100MW Retailer confidence of own power at 6-year high The G7 agrees on a two-pillar SA GDP grows by 1% (an global tax solution. Under annualised 4.6%) in the three In a surprise move, President Retailer confidence leaps to a Pillar 1 the most profitable months through March from Ramaphosa announces that six-year high of 54 points in the multinationals will pay tax the previous quarter. However, the government will increase second quarter. That’s up from in the countries where they GDP contracted 3.2% year-on- the generation threshold for 37 points in the first quarter. operate. Under Pillar 2, the year, which means output is still companies to produce their minimum tax rate will be at down from a year ago. own electricity without a least 15%. licence to 100MW.

Source: Moneyweb Source: Statistics SA Source: Moneyweb Source: BER Bureau for Economic Research

22 Jun 2021 23 Jun 2021 28 Jun 2021 Naspers trading profit up 45% Inflation jumps to 5.2% SA re-enters lockdown level 4

Naspers’ annual results show Consumer Price Index (CPI) SA re-enters lockdown level that company revenue grew accelerates to 5.2% in May 4 with amended restrictions, by 32% to $29.6 billion. Trading from 4.4% in April, The biggest effectively closing down profit increased 45% to driver of the increase in CPI is alcohol-related industries, $5.6 billion. the price of fuel, which is 37% hospitality and tourism. more expensive than it was a year ago.

Source: Naspers/Moneyweb Source: Statistics SA Source: eNCA

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