Daily Report 20 October 2021

SA Company News:

The JSE All Share index closed unchanged at 66 776 as investors shrugged off global concerns of rising inflation and slowing growth. Tiger Brands to have a secondary listing on A2X and will start trading on the exchange from 26 October 2021. Pick n Pay will release its half-year results later today and it expects to report sales growth of 4% to R46bn for the period. Capitec to offer study loans from 7 % to University of Stellenbosch Business School students, payable over 84 months.

SA Economy:

Revenue in the tourism sector is still 60% lower than normal even though tourism and business travel continue to recover. As part of Cape Town’s climate change strategy, the city introduced a new floating solar pilot scheme at the wastewater treatment plant in Kraaifontein to generate energy and reduce water evaporation. Canegrowers in KwaZulu-Natal will receive R85 million in relief funding from the Department of Trade and Industry following the unrest and looting seen in July.

Global Economy:

British inflation slowed unexpectedly last month. Consumer price index rose 3.1% in annual terms in September dropping back from 3.2% in August. New home prices in China rose by 3.8% year-on-year in September 2021, after a 4.2% gain a month earlier. This was the weakest rise in new home prices since December last year. China’s central bank kept its benchmark loan prime rate unchanged at 3.85%. China to boost coal supply in order to reduce coal prices.

Global Company News:

The Hang Seng was up 1.25% while the Shanghai Composite was flat. Investors continue to wait for China Evergrande Group’s overdue interest payments on dollar bonds. Johnson & Johnson earned $2.60 per share, beating market expectations of $2.35 per share. Procter & Gamble fell 1.81% after saying it will raise prices due to supply chain issues Danone, the world’s largest yogurt maker sales rose to EUR6.2 billion in the third quarter, with strong growth across all regions. Tencent had gained 2% which should be positive for Naspers.

Commodities:

Gold was 0.45% higher at $1776/oz, while platinum was down 0.1% to $1 039. Brent crude was 1.4% lower at $84.95 a barrel.

Cryptocurrencies.

Bitcoin extended gains to trade at $63 700. 

Currencies:

The rand is at a one month high of R14.51/$. The euro traded at $1.1646

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1777.95 (+0.02) USD/ZAR 14.52 Top40 60190.06 (-0.05)
Platinum 1046.70 (-0.76) GBP/ZAR 20.04 Dow 30 35457.31 (+0.56)
Brent 84.54 (-0.18) EUR/ZAR 16.91 S&P 500 4519.63 (+0.73)
Copper 4.65 (-2.80) EUR/USD 1.1644 FTSE 7217.53 (+0.19)
Palladium 2094.00 (+2.10) USD/JPY 114.52 DAX 15515.83 (+0.27)
Iron Ore 115.00 (+0.00) BITCOIN 63964.70 Shanghai 3586.86 (-0.19)
Source:  Investing.com