Daily Report 03 November

SA Company News:

The JSE All Share index closed 0.47% higher at 67 782. Financial shares led the gains, driven by Old Mutual (up 5.6%), Rand Merchant Investments (up 4.5%) and FirstRand (up 2.43%). Mr Price Group advised shareholders in a trading update that headline earnings per share (HEPS) is likely to be between 30% and 40% higher than the same period last year. The interim results is due on Thursday, 25 November 2021. Dis-Chem Pharmacies Limited has achieved positive results, despite a tough economic environment. The Group increased headline earnings per share by 35.3%. A gross interim cash dividend of 19.48540 cents per share has been declared.

SA Economy:

South Africa continues to count the votes after Monday’s municipal elections with initial results showing the African National Congress (ANC) support dropping below 50%. The ongoing power cuts in South Africa is a major concern for the economy as this can lead to job losses. The Absa Purchasing Managers’ Index (PMI) fell to 53.6 points in October from 54.7 points in September.

​Global Economy:

The German manufacturing PMI for October fell to 57.8, a slight drop from the 58.2 level in September. The US Federal Reserve is expected to announce plans today to begin tapering its stimulus program. At COP26, Indian Prime Minister Narendra Modi gave a longer deadline for reducing his country’s emissions, saying India would take as long as 2070 to reduce its net greenhouse gases to zero. China’s services PMI increased to 53.8 in October 2021 from 53.4 in the prior month, pointing to a second straight month of expansion in the service sector.

Global Company News:

European stocks traded mixed as traders took a breather while waiting for the latest Federal Reserve monetary policy decision due out later today. Amazon is relaxing its mask-wearing rules for U.S. employees, letting those who are fully vaccinated against Covid-19 work in its warehouses without covering their face. The U.S. market rally continued with the Dow closing above 36 000 for the first time. Facebook to shut down facial recognition in photos and videos over concerns about the technology. Asian stock markets fell as investors remain cautious, weighed down by the latest Covid outbreak in China. Tencent Holdings announced that it developed three semiconductor chips to be used in computing, video processing and for high-performance networks.

Commodities:

Gold was flat at $1792/oz, while platinum lost 2.2% to $1 043. Brent crude was 0.43% weaker at $84.16 a barrel.

Currencies:

The rand was little changed at R15.40/$. US dollar is expected to stay in a tight range ahead of a Fed policy announcement later today. The euro traded at $1.1606