Daily Report 12 October 2021

SA Company News:

The JSE All Share index closed higher at 65 855 mainly pushed up by mining stocks. MTN Uganda listing is scheduled to take place on 6 December 2021. Investors in that country must apply for a minimum of 500 shares at a price of 200 Ugandan shillings or $0.0558. Local cement producer Pretoria Portland Cement (PPC) gained 9% on the prohibition of imported cement from November. The South African National Roads Agency (SANRAL) reported total liabilities of R140 billion compared to R130 billion in the previous year. Telkom will no longer offer Netflix on its set-top box from October.

SA Economy:

The Business confidence index fell to 91 in September of 2021 from 91.9 in the previous month, mainly due to a decline in retail sales and manufacturing output. The government announced a ban on the use of imported cement on all government-funded projects. Power utility Eskom to continue with loadshedding until Thursday. The Reserve Bank warned of upside risks to its inflation outlook which indicates that the bank may increase interest rates in November. 

Global Economy:

High inflation and low growth are spreading across global markets as the price of brent crude rallied to the highest level since October 2018. The energy crisis continues with India and China battling with coal shortages. China car sales fell 19.6% year-on-year to 2.07 million units in September as a global shortage of semiconductors continues. The number of unemployed people in the UK was down by 126 000 people, bringing the unemployment rate to 4.5%.

Global Company News:

The Shanghai Composite and the Hang Seng were both down 1%. Chinese property developer Evergrande missed another interest payment that was due yesterday. The total interest due from China Evergrande is approximately $148 million. Merck Inc has applied for U.S. FDA authorization for its promising pill to treat mild-to-moderate patients of COVID-19. U.S. banks starts the reporting season on Wednesday, with investors awaiting a slight uptick in profit growth in the third quarter.

Commodities:

Oil prices rose 2% to $84.60. Gold is up 0.4% to $1760/oz while platinum had gained 0.3% to $1009. 

Cryptocurrencies:

Bitcoin added 2.8% to $56 206 as the countdown to a decision on a Bitcoin exchange-traded fund (ETF) continues. The US Securities and Exchange Commission will decide in November whether to approve a bitcoin futures exchange-traded fund. 

Currencies:

The rand is weaker at R15.06/$. The euro is trading flat at $1.155.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1760.75 (+0.23) USD/ZAR 15.07 Top40 59662.98 (+1.38)
Platinum 1015.30 (-1.36) GBP/ZAR 20.51 Dow 30 34496.06 (-0.73)
Brent 83.92 (+0.24) EUR/ZAR 17.42 S&P 500 4361.19 (-0.69)
Copper 4.30 (+0.23) EUR/USD 1.1561 FTSE 7146.85 (+0.72)
Palladium 2114.50 (-0.73) USD/JPY 113.27 DAX 15199.14 (-0.05)
Iron Ore 129.00 (+10.08) BITCOIN 56596.80 Shanghai 3525.49 (-2.37)
Source:  Investing.com