Daily Report 20 September 2021

SA Company News:

The JSE All Share index swung between small gains and losses on Friday, as investors continued to digest concerns over slowing global growth. The index closed 0.7% lower. Restaurant group Spur sales grew 1% in the year to end-June. Imperial Logistics shareholders have approved a buyout offer of R12bn from Dubai Ports World.

SA Economy:

This week investors’ focus is shifting to local consumer price index data and South Africa’s Central Bank interest rates decision. The UK government decided to keep SA on the red list making visiting SA too expensive for most Britons.

Global Economy:

The Eurozone annual inflation rate came in at 3.2% in August 2021 well above the European Central Bank’s target of 2.0%. Fed is expected to provide more details on the tapering timeline at the FOMC meeting this week. The Baltic Dry Index climbs 1.4% to 4,275 on Friday, its highest level since November of 2009 underpinned by ongoing shipping constraints. Prime Minister Narendra Modi said on Saturday that India is looking to protect the population by accelerating vaccinations and welcoming back tourists.

Global Company News:

The FTSE 100 rose slightly to 7,050 on Friday, as investors’ focus shifts to a Bank of England meeting this week. US stocks finished lower on Friday, with the Dow Jones losing 166 points to 34585. The S&P 500 dropped 41 points to 4433.  The Hang Seng fell on Monday almost 4% dragged down by the continued dumping of shares in Chinese property company Evergrande which fell 15%.

Commodities:

Brent crude futures fell to $75 a barrel on Friday. The Gold price fell 0.34% to a one-month low at $1,745 on Monday. Iron ore futures have dropped to $104 per metric ton as a sharp decline in China’s property sector hurts demand.  Platinum was down 2.8% at $914.54. Palladium slipped 3.5% to $1,945.17.

Currencies:

The rand slid to its lowest against the dollar in about four weeks to R14.82. EUR/USD 1.1723.