Daily Report 18 November

SA Company News:

The JSE All Share Index extended its rally, reaching a new record level of 71 342. Woolworths’ share price fell 7% to R53.52, after the company reported for the 20 weeks ended 14 November, its sales fell by 4.5% compared to the same period last year. The group says lockdowns in Australia affected trade, while load-shedding and civil unrest affected their SA operations The Spar Group, which has stores in southern Africa, Switzerland, Poland and Ireland reported a 5% growth in headline profit. Spar declared a final dividend of R5.36 per share, bringing the total to R8.16, which was down 5.7% year on year. The share price fell 6.4% to R183.82. MTN South Africa has reached an agreement to sell its cellphone towers to IHS Towers for R6.4 billion. MTN will use the R6.4 billion earned from the deal to buy the anticipated auction of spectrum next year. Sugar producer Tongaat has proposed a rights issue of up to R4 billion, as it aims to reduce its R6.5 billion debt pile. The group has excess debt of R3.7 billion that can’t be repaid through operational cashflows.

SA Economy:

The annual inflation rate stood at 5% in October of 2021, unchanged from the previous month and in line with expectations, remaining above the 4.5% midpoint of the South African Reserve Bank’s monetary policy target range of 3-6% for six consecutive months. Retail sales rose by 2.1 percent from a year earlier in September 2021. The latest repo rate decision to be announced by Reserve Bank governor Lesetja Kganyago just after 3pm today.

Global Economy:

Britain’s consumer price index jumped from 3.1% to 4.2% year-on-year in October suggesting that the Bank of England would raise rates next month. The annual inflation rate in the Euro Area increased to 4.1% in October 2021 from 3.4% in September. A surge in demand for consumer goods during the pandemic has created major supply bottlenecks around the world, which has impacted the supply of container ships and boxes to transport cargo. Shipping and port officials expect global supply chain disruptions to extend into 2022.

Global Company News:

Amazon.com Inc said it would stop accepting Visa Inc credit cards issued in the United Kingdom from next year due to the high fees charged by the payment processor for transactions. Amazon customers can still use Visa debit cards, Mastercard and Amex credit cards. The Dow Jones closed 0.6% lower at 36 931, as Visa shares fell almost 5% Cisco Systems released earnings per share of $0.82 compared to market expectations of $0.80. Nvidia reported revenue of $7.1 billion despite a continuing chip shortage that has dented the ability of some companies to keep pace with demand. China Evergrande Group plans to sell its entire stake in a Hong Kong-listed film and television programs production company for $273.5 million to generate cash. 

Commodities:

Gold gained 0.42% to $1 865/oz and Platinum 0.86% to $1 073/oz. Brent crude was 0.44% weaker at $80.10 a barrel on reports the US was asking other major oil consumers like China, India, Japan and South Korea to consider a coordinated release of oil reserves to bring prices down.

Currencies:

The rand traded at R15.50 against the US Dollar, R20.92 against  British Pound and R17.50 against the Euro. The Euro has recovered slightly to trade at $1.131.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1866,91 0,69 USD/ZAR 15,50 Top40 64337,17 0,27
Platinum 1064,80 -0,30 GBP/ZAR 20,92 Dow 30 35931,05 -0,59
Brent 80,20 -1,75 EUR/ZAR 17,50 S&P 500 4688,67 -0,24
Copper 4,25 -2,28 EUR/USD 1,13 FTSE 7291,20 -0,48
Palladium 2192,00 1,37 USD/JPY 114,21 DAX 16251,13 0,01
Iron Ore 85,00 -3,41 BITCOIN 59900,45 Shanghai 3525,33 -0,33
Source:  Investing.com