Daily Report 30 November

SA Company News:

The JSE All Share Index gained 2% to close at 70 009. Implats said it will offer RBPlat shareholders R150 a share, consisting of a cash amount of ZAR90 per offer share and 0.3 ordinary shares in Implats, valued at ZAR60. The offer price represents a 24% premium to its closing price on Friday. The deal is conditional upon more than 50% of RBPlat shareholders accepting the deal. Cement maker, PPC has set a target of attaining net zero emissions by 2050. The company aims to cut emissions 10% by 2025 and 27% by 2030. Standard Bank said its revenue has continued to recover over the past ten months with mortgages, vehicle and asset finance and business loans being well above prior periods. Personal unsecured lending and card spending recovered to 2019 levels. The bank will release its financial results for the 2021 financial year on 11 March 2022, it expects headline earnings per share to rise by at least 20% year on year.  In a trading update from FirstRand, the company advised shareholders that it expects headline earnings per share to increase by more than 30% for the six months ending 31 December 2021.

SA Economy:

President Cyril Ramaphosa kept its lockdown restrictions unchanged at level 1, with investors welcoming the news that domestic tourism remains unaffected for now. The government is proposing a much more vigorous vaccination campaign to increase uptake, while mandatory vaccines may also be an option if the situation worsens. Private sector credit grew by 1.29 percent year-on-year in October 2021, beating market expectations of a 1.7 percent rise and following a 1.60 percent gain a month earlier.

Global Economy:

Investors are awaiting more clarity on the likely transmissibility and severity of the Omicron variant and whether it will weigh on the efficacy of vaccines. Covid-19 vaccine makers have begun lab tests to see whether existing shots work against the strain, and some have even begun preparing new vaccines. Eurozone economic sentiment indicator dropped to a 6-month low of 117.5, weighed down by lower consumer confidence levels as new COVID-19 restrictions and lockdown measures were announced. Manufacturing PMI for China rose to 50.1 in November 2021 from 49.2 a month earlier, beating market estimates of 49.6.

Global Company News:

European stock markets traded higher, with travel stocks benefiting as investors reassess the potential economic damage the newly discovered omicron Covid variant might cause. The FTSE 100 rose 0.94% to 7109. Moderna stated that a reformulated shot aimed at protection against the Omicron variant could be ready by early 2022. Telecom Italia fell 2.4% after its CEO Luigi Gubitosi resigned. It was the telecom’s fourth CEO lost in six years, as the firm’s board and investors continue to clash over the $12 billion takeover offer from US buyout firm KKR. Jack Dorsey is stepping down as chief executive officer of Twitter, handing over control to Chief Technology Officer Parag Agrawal, who joined Twitter in 2011. 

Commodities:

Gold remained under pressure amid hopes that the impact of the Omicron variant on the global economy would be milder than initially thought. The price of brent crude stabilized yesterday at $72 per barrel.

Currencies:

The rand strengthened from Friday’s selloff to trade at R16.15 against the US Dollar, R21.52 against British Pound and R18.26 against the Euro. The Euro has recovered slightly to trade at $1.132.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1789,16 -0,45% USD/ZAR 16,15 Top40 63601,00 1,87%
Platinum 959,80 0,81% GBP/ZAR 21,52 Dow 30 35135,94 0,67%
Brent 73,25 -1,46% EUR/ZAR 18,26 S&P 500 4655,27 1,30%
Copper 4,30 1,34% EUR/USD 1,13 FTSE 7109,95 0,93%
Palladium 1789,25 2,00% USD/JPY 113,15 DAX 15280,86 0,16%
Iron Ore 99,50 3,02% BITCOIN 56405,00 Shanghai 3555,45 0,08%
Source:  Moneyweb & Investing.com