Daily Report 22 October 2021

SA Company News:

The JSE All Share index closed 1.25% lower at 66 057. Mining shares led the decline with Anglo American shares falling 4% after the company said its third-quarter production increased 2% and Kumba down 4.3% because of rail bottlenecks which may force the company to slow output as stockpiles rise. JP Morgan Asset Management will partner with Stanlib to distribute the US-based asset manager’s investment product offerings into the South African market. These new products are expected to be introduced in the first quarter of 2022. Sasol Ltd posted a 44% rise in first-quarter revenue in its main chemicals business on higher chemical and crude oil prices. Clicks headline earnings rose 1.3% to R1.9 billion and declared a final dividend of R3.47/share which means the total dividend for the year is R4.90/share. Pick n Pay said that it wants to add another 200 new stores to its Boxer discount supermarket chain.

SA Economy:

The Steel and Engineering Industries Federation of SA(SEIFSA) is prepared to accept an offer of 6% wage increase from employers. According to a report by the South African Property Owners Association (SAPOA) office vacancy rate has reached a new all-time high of 15.4%. President Cyril Ramaphosa has named three senior SA officials in the group of special envoys heading to a meeting with Eswatini monarch King Mswati III to diffuse escalating political violence in the neighbouring country. The delegation comprises of former justice minister Jeff Radebe, deputy minister of international relations and co-operation Candith Mashego-Dlamini and Maropene Ramokgopa, special adviser on international relations.

Global Economy:

British retail sales dropped by 0.2% September adding to signs of weakness in the recovery from COVID-19. President Joe Biden will consider deploying the National Guard to help with supply chain bottlenecks. German Composite PMI fell to 52 in October 2021, from 55.5 in the previous month and well below market forecasts of 54.0 on the back of supply chain issues.

Global Company News:

Sentiment was lifted on news that China Evergrande Group has made an overdue interest payment to its international bondholders. British supermarket Sainsbury’s said it had ended talks about selling its banking operation. US stocks fell slightly as investors worry over inflationary pressures arising from high commodity prices. The Dow Jones closed flat at 35 603. IBM shares dropped 9.6% as the company recorded worse-than-expected revenue due to chips shortages.

Commodities:

The price of Brent crude edged lower to $84.67. Gold futures were higher at $1791, helped by a slightly softer dollar. Nickel, which is used mainly to make stainless steel, surged past $21,000 a ton due to a global shortage.

Currencies:

The rand was 0.23% firmer at R14.63/$. The dollar was softer against the euro at $ 1.163.

Brent Oil Futures
.
Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1788.15 (+0.02) USD/ZAR 14.64 Top40 59535.08 (-1.36)
Platinum 1054.90 (-0.38) GBP/ZAR 20.19 Dow 30 35603.08 (-0.02)
Brent 83.93 (-1.70) EUR/ZAR 17.02 S&P 500 4549.78 (+0.30)
Copper 4.56 (-2.63) EUR/USD 1.1625 FTSE 7190.30 (-0.46)
Palladium 2036.75 (-1.78) USD/JPY 113.96 DAX 15472.56 (-0.33)
Iron Ore 115.00 (-2.07) BITCOIN 63115.40 Shanghai 3584.09 (-0.02)
Source:  Investing.com