Daily Report 05 November

SA Company News:

The JSE All Share Index reversed early gains to close 0.6% lower at 68 156. MTN plans to sell shares in MTN Nigeria Communications Ltd worth around R3.7 billion via a book building process to settle debt to reduce its shareholding in MTN Nigeria. MTN shares rose as much as 7%. CEO of Afrimat said construction materials, industrial minerals and bulk commodities, experienced strong growth in the six months to August 2021. Afrimat reported a 60.5% rise in first-half headline profit. Trading update from AVI group stated revenue for the first quarter ended September 2021 was 1.60% lower than the same period in the prior year, mainly due to the normalisation of sales volumes in Entyce and Snackworks. Truworths has warned that its retail sales fell by 1.2% to R3.9 billion in the past quarter, hit by stock shortages due to the global supply chain crisis.

SA Economy

Results from municipal elections published by the electoral commission reflected that the ANC has taken 46% of the total votes. South Africa’s Purchasing Manager’s Index (PMI) fell to 48.6 in October from 50.7 a month before, main reason for the drop was the strike by the National Union of Metalworkers and shortage of raw materials.

Global Economy:

The Bank of England kept interest rates unchanged at a record low of 0.1%. The US trade deficit widened to a record high of $80.9 billion in September 2021, slightly higher than market forecasts of $80.5 billion. US jobs report will remain the key focus today with estimates pointing to 450 000 additional jobs for October. At the COP26 climate summit Indonesia, Poland and Vietnam pledged to phase out use of coal-fired power plants but fail to win support from China and India.

Global Company News:

Shares in Chinese developer Kaisa Group Holdings Ltd was suspended, a day after the company said a subsidiary had missed a payment on a wealth management product. Airbnb reported revenue grew 67% to $2.2 billion in the third quarter beating analyst estimates and also as the delta variant of Covid-19 prompted new travel concerns. 

Commodities:

Gold price is holding firm at $1796/oz. OPEC producers kept to their gradual monthly increase of 400 000 barrels per day in oil output rejecting U.S. pressure to boost production. Brent crude is back above $81 per barrel. Platinum was down 0.16% to $1 035/oz, but palladium rose 0.23% to $2 023 /oz. Iron ore futures fell to $92 per ton on continuing Chinese steel curbs.

Currencies:

The rand strengthened to R15.25/$. The euro continues to gain against the dollar, trading at $1.155.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1796,55 (+1.33) USD/ZAR 15,23 Top40 61409,93 (-0.76)
Platinum 1035,30 (-0.16) GBP/ZAR 20,55 Dow 30 36124,23 (-0.09)
Brent 80,76 (-1.06) EUR/ZAR 17,60 S&P 500 4680,06 (+0.42)
Copper 4,32 (-0.93) EUR/USD 1,1556 FTSE 7279,91 (+0.43)
Palladium 2023,50 (+0.27) USD/JPY 113,67 DAX 16029,65 (+0.43)
Iron Ore 92,00 (-1.63) BITCOIN 62174,80 Shanghai 3507,07 (-0.43)
Source:  Investing.com