SA Company News:
The JSE All Share index closed 0.6% higher at 64 543. Sanlam to acquire Absa’s investment management business thereby increasing Sanlam Investment Holdings (SIH) total assets under management to more than R1 trillion. The transaction will result in Absa holding 17.5% in Sanlam Investments pending regulatory approval. Kumba Iron Ore has appointed Mpumi Zikalala as its new CEO. Her appointment is effective January 2022. The Foschini Group (TFG) announced plans to open 200 new stores in 2021 and another 800 over the next 4 years. Spur Corporation reported an improvement in performance with a rise in gross profit from 74% to 77% while revenue fell 10.5%. MTN Group will list 20% of its Uganda unit to ensure a broad-based ownership. The Initial Public Offering (IPO) will most likely be the country’s major ever listing on Uganda’s stock exchange (USE). Datatec Limited advised shareholders that earnings per share is expected to be between 8.0 and 8.5 US cents. EOH forecasts its operating profit to have increased between R125 million and R175 million compared to a R1.3 billion operating loss in the previous year.
The PMI increased to 50.7 in September from 49.9 in August. The private sector returned to growth in September as lockdown measures were lowered to Level 2. The City of Johannesburg plans to take over the electricity distribution from Eskom due to unpaid electricity bills in the townships however it will have to pay Eskom R7.5bn to cover the debt owed.
President Joe Biden said he cannot guarantee the government will not breach its $28.4 trillion debt limit unless Republicans join Democrats in voting to raise it.U.S Institute for Supply Management services PMI report for September rose from 61.7 to 61.9 in August, 2 points better than expected. A reading above 50 indicates growth in the services sector.
Global Company News:
Markets in Asia traded lower on Wednesday after the IMF cut the global economic growth forecast to below 6% this year. British bakery chain Greggs rose 10.5% after raising its profit forecast on the back of strong sales. Netflix rose 4.6% on a report that the streaming platform still has the best video content. The Dow Jones Industrial Average gained 311 points or 0.92%, to 34 314 and the S&P 500 rose 1.05% to 4 345.
Gold prices eased to $1 754 per ounce while platinum had fallen 1.19% to $951.54. Brent crude was flat at $82.52 a barrel.
The rand was 0.87% weaker at R15.12/$. The euro fell 0.25% to $1.1592.
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