Daily Report 24 November

SA Company News:

The JSE All Share Index closed lower at 70 688. Investment holding group Brait shares slid 10% to R4.10 on news of a R3bn rights offer. The capital raised would go towards refinancing the company’s debt. MTN Group announced that the Securities and Exchange Commission (SEC) has approved an offer for sale of up to 575 million ordinary shares in MTN Nigeria, by way of a bookbuild to qualified investors (Institutional Offer) and a fixed price to retail investors (Retail Offer). The Institutional Offer opens on 23 November 2021 and closes on 26 November 2021. Shares in Bell Equipment dropped 2.62% to R12.64 a share after the company confirmed that the proposed buyout of the minority shareholders by the company’s founding family trust will not be going ahead. Coronation Fund Managers increased its revenue for the year to end-September by 17.1% to R4.263 billion, with headline earnings per share up 22.4% to 487.9 cents per share, from 398.5 cents. PPC results for the six months ended 30 September 2021 stated group revenue rose by 20% to R5.1 billion, driven mainly by a 12% increase in their cement sales volumes. Basic headline earnings per share rose by 83% to 55 cents. The share closed at R5.12.

SA Economy:

Health minister, Joe Phaahla, said that the country is seeing a rise in Covid-19 infections, but health officials will not move to introduce stricter lockdown restrictions for now. Producer inflation for October will be published tomorrow. Economists are expecting another surge in producer inflation and warned that it could keep climbing driven by higher fuel/energy costs and the global shortage of raw materials.

Global Economy:

The Central Bank of Nigeria kept its monetary policy rate unchanged at 11.5% during its November meeting yesterday, in line with market forecasts. Nigeria’s annual inflation eased to a ten-month low of 15.99% in October. Japan’s Prime Minister Fumio Kishida said earlier that his government would release some oil reserves, after a U.S. request, in a way that does not breach a Japanese law, which only allows stock sales if there is a risk of supply disruption. This comes after U.S. petrol prices soar and OPEC+ not willing to pump more oil.

Global Company News:

European equity markets fell to 3-week lows yesterday, as rising coronavirus infections continue to hit sentiment. U.K.’s FTSE 100 dropped 0.6% to 7 267 and the DAX in Germany closed 1.3% lower at 15 937. Zoom shares fell 17% to $203.30 after the company warned of a revenue slowdown, as work-form-home conditions slows sales. The S&P 500 rose 0.17% to 4690 as gains by cyclical stocks helped overcome losses in technology shares. The Dow Jones Industrial Average added 194 points to close at 35 813. Chinese stocks were mixed as investors continue to digest news of U.S. Fed Chairman Jerome Powell’s renomination.

Commodities:

Gold lost 0.15% to $1,855.367/oz, while platinum gained 0.52% to $1,055.23/oz. Platinum was down 0.8% at $1 003 and Palladium was down 0.4% to $1 946.  The U.S. confirmed it will release 50 million barrels of oil from strategic reserves to cool the market. The likes of India, Japan and South Korea are also expected to join in the release of additional reserves. Brent crude was 1.25% firmer at $81.98 a barrel.

Currencies:

The rand traded at R15.58 against the US Dollar, R21.03 against British Pound and R17.69 against the Euro The Euro has recovered slightly to trade at $1.124.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1789,32 -1,03% USD/ZAR 15,86 Top40 64566,00 0,28%
Platinum 969,35 -4,98% GBP/ZAR 21,21 Dow 30 35813,80 0,54%
Brent 82,63 3,82% EUR/ZAR 17,83 S&P 500 4690,70 0,17%
Copper 4,43 1,35% EUR/USD 1,12 FTSE 7266,69 0,15%
Palladium 1865,00 -4,83% USD/JPY 114,97 DAX 15937,00 -1,12%
Iron Ore 92,50 2,16% BITCOIN 57681,60 Shanghai 3593,91 0,14%
Source:  Moneyweb & Investing.com