Daily Report 29 October

SA Company News:

The JSE All Share Index rose 0.4% to 67 770. Anglo American Platinum (Amplats) is in talks to sell its Bokoni platinum mine to African Rainbow Minerals. Amplats shares were up 2.4% while ARM shares gained 1%. Datatec reported its revenue was up 15% to $2.26bn (R34.14bn) for the six months ended 31 August 2021. Following the sale of Westcon, the company is to return US$70 million to ordinary shareholders in the form of a special cash dividend with a scrip distribution alternative. AB InBev surged 8% after reporting third quarter revenue grew by 7.9% to $14.27 billion, driven by beer sales in Brazil. Talks between Heineken and Distell is still ongoing as the Public Investment Corp (PIC) is asking for a higher price. MTN NIGERIA released unaudited results for the nine months ended 30 SEPTEMBER 2021. Mobile subscribers declined by 7.5 million to 67.5 million, impacted by the regulatory restrictions on new SIM sales and activations. Active data users increased by 2.5 million to 33.2 million and revenue was up by 23.7% to N1,204.4 billion.

SA Economy:

Producer prices jumped by 7.8% from a year earlier, up from a 7.2% increase in August. As the country tries to cope with loadshedding, Mineral resources & energy minister Gwede Mantashe said that the country will get 25 new renewable energy projects. It will take approximately 3 years to deliver power to the national grid.

Global Economy:

US economy slows sharply. Gross domestic product increased at a 2.0% annualized rate in the third quarter of 2021, well below market forecasts of 2.7%. China’s manufacturing purchasing managers index was little changed at 49.7 this month from 49.6 in September as electricity shortages and soaring commodity prices hit manufacturers.

Global Company News:

Chinese Property Developer Kaisa Group shares fell by as much as 19.9% after Fitch Ratings and S&P Global Ratings downgraded the Chinese property developer on refinancing risk. China Evergrande avoided default for a second time by making an overdue interest payment on dollar bonds. Fitch Ratings has affirmed China-based Tencent Holdings rating at ‘A+’. The affirmation comes as Tencent will maintain a healthy relationship with the Chinese government and regulatory authorities.  Apple shares dropped 3% in extended on a revenue miss, which the company attributed to supply-chain constraints, while Amazon stock fell 4% after it posted earnings per share at $6.12, compared to market expectations of $8.91. Facebook changed its company name to Meta.

Commodities:

Iran is seeking to remove U.S. sanctions prohibiting the sales of its oil to the world. Brent crude fell 0.8% to $83.91 a barrel. Spot gold rose 0.12% to $1,802.23 an ounce.

Currencies:

The rand was weaker at R15.16/$ as traders turned cautious ahead of local government elections. The euro gained after European Central Bank President Christine Lagarde said higher inflation might be around for longer than expected. 

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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1796,75 (-0.35) USD/ZAR 15,16 Top40 61093,41 (+0.36)
Platinum 1018,55 (+0.13) GBP/ZAR 20,91 Dow 30 35730,48 (+0.67)
Brent 83,77 (+1.13) EUR/ZAR 17,69 S&P 500 4596,42 (+0.97)
Copper 4,42 (-0.68) EUR/USD 1,1670 FTSE 7249,47 (-0.05)
Palladium 1992,75 (+0.77) USD/JPY 113,56 DAX 15696,33 (-0.06)
Iron Ore 110,00 (-6.36) BITCOIN 61094,70 Shanghai 3544,94 (+0.54)
Source:  Investing.com