Daily Report 02 December

SA Company News:

The JSE continued its recovery from last Friday’s selloff as risk appetite returned to markets, the All-Share Index closed up 1% at a record level of 71 198. In a trading update from Bidcorp, the company said it was battling with a few issues, such as inflation, labour shortages and supply-chain disruptions, but the effect on profit margins has been neutral as it was able to pass on costs. Bidcorp’s shares closed up 2.45% to R312.40. Capitec Bank overtook Standard Bank for the first time to become SA’s second-biggest bank by market value. The bank has an active client base of about 16.18 million people, which according to CEO Gerrie Fourie is equivalent to 45% of the 35-million adults who bank in SA. Capitec shares gained 2.4% to close at R1867 per share. 

SA Economy:

The Absa Purchasing Managers’ Index rose to 57.2 in November of 2021 from 53.6 in the previous month, pointing to a faster expansion in manufacturing activity that was the strongest since June. The two components that were most severely affected by strike action in the steel sector and load-shedding in October were business activity and new orders. November car sales reached 41 588 which was marginally higher than the 41 035 in October and a 6.6% increase over November 2020. Passenger cars were driven by strong demand from the car rental industry which accounted for 15.6% of November car sales. South Africa is in talks with Pfizer Inc. and Merck & Co. to gain access to their Covid-19 treatment pills as the omicron variant spreads across the country and cases almost double. The National Institute for Communicable Diseases said the number of covid cases rose from 4373 on Tuesday to 8561 on Wednesday.

Global Economy:

The Eurozone Manufacturing PMI came in at 58.4 in November 2021, little-changed from a preliminary estimate of 58.6 and the previous month’s reading of 58.3The Organisation for Economic Cooperation and Development (OECD) said in its latest economic outlook that global growth is set to hit 5.6% this year before moderating to 4.5% in 2022 and 3.2% in 2023.The OECD also warned that the main risk is inflation that continues to surprise on the upside, forcing central banks to tighten monetary policy. The United States private sector hired 534 000 workers in November 2021, beating the market’s expectations of a 525 000 rise. The labour market continues to show signs of a solid recovery.

Global Company News:

Stock markets rallied yesterday, reversing much of the previous trading day’s losses, as investors used the dip in prices to bet the latest COVID-19 variant would not derail the economic recovery. The FTSE 100 rose 1.6% to close at 7 170 with Germany’s DAX 30 gaining 2.7% at 15 506. Tencent Holdings Ltd. will soon allow WeChat groups to display links to external shopping sites such as Alibaba’s Tmall and Taobao, taking another step toward dismantling longstanding barriers erected across China’s most popular social media service. Hong Kong stocks were higher this morning with the Hang Seng Index up 0.2% at 23700. Chinese property developers were leading the gains.

Commodities:

The Gold price was slightly lower in early Asian trade, it fell 0.24% to $1 777/oz, while platinum was down 0.4% to $928/oz. Brent crude was 1.93% lower at $68.89 a barrel.

Currencies:

The rand is trading at R16.05 against the US Dollar, R21.32 against British Pound and R18.18 against the Euro. The Euro is flat at $1.131.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1781,88 0,38% USD/ZAR 16,05 Top40 64789,00 1,12%
Platinum 927,90 -0,54% GBP/ZAR 21,32 Dow 30 34022,04 -1,36%
Brent 68,89 -1,93% EUR/ZAR 18,18 S&P 500 4513,04 -1,20%
Copper 4,27 -0,67% EUR/USD 1,13 FTSE 7168,68 1,52%
Palladium 1738,00 0,73% USD/JPY 113,07 DAX 15472,67 2,41%
Iron Ore 100,00 0,00% BITCOIN 56799,30 Shanghai 3580,94 0,28%
Source:  Moneyweb & Investing.com