Daily Report 09 December

SA Company News:

The JSE All Share Index slipped from a record high to close 0.7% lower at 72 404  as markets await a new catalyst to provide direction. Dis-Chem will introduce a mandatory vaccination requirement for all staff members from 1 February 2022. Dis-Chem said for those who won’t vaccinate for specified reasons, a weekly negative Covid-19 test will have to be produced before entering the workplace. Sanlam is repricing its retail life insurance products and group risk schemes to try offset the effect of excess mortality claims that have hurt its operating profits, as it continues to battle the ongoing effects of Covid-19. Sanlam said Covid-19 mortality claims payments totaled R14bn in the 10-months to end-October. 

SA Economy:

South Africa’s SACCI business confidence index fell to 92.8 in November 2021 from 94.9 in October. High inflation and uncertainty over energy supply were major contributors to the decline in business confidence. A South African study suggested that booster doses produced by Pfizer and German partner, BioNTech, could help fend off infection from the Omicron variant. South Africa’s retail sales were up 1.8% year on year in October after rising by 2.1% in September according to Statistics South Africa. Eskom has applied for a 20.5% electricity tariff increase for the financial year that starts on 1 April 2022, Nersa has to make a decision on the application by 25 February 2022.

Global Economy:

Yesterday we saw the end of an era in Germany as Olaf Scholz is sworn in as the chancellor, replacing Angela Merkel.  British Prime Minister Boris Johnson announced tighter restrictions to stem the spread of the Omicron variant, urging people in England to work from home and mandating Covid-19 passes for entrance into nightclubs and large events. Investor focus will now be on the release of US inflation data due out tomorrow and the Federal Reserve meeting next week for indications on the timing of interest rate hikes in the US.

Global Company News:

Most European markets swung between small gains and losses as investors took a breather following gains of more than 2% in the previous session. Shares of Nestle and L’Oréal was in the spotlight after Nestle said it would cut its stake in the French cosmetics company, L’Oréal to about 20% by selling $10 billion worth of shares back to the French cosmetics maker. Troubles in China’s property sector resurfaced when trading in shares of Kaisa Holdings was suspended for the second time in two months after a report said that the company was unlikely to meet its offshore debt repayment and Evergrande Group’s shares sank 4.9% after the developer again missed its debt payment deadline. 

Commodities:

Gold is trading at $1785 an ounce, remaining under pressure as US bond yields crept higher.  Platinum gained 0.57% to $954/oz. Brent crude was 0.50% firmer at $76.95 a barrel as tensions between the US and Russia over Ukraine remained high.

Currencies:

The rand traded at R15.72 against the US Dollar, R20.76 against British Pound and R17.83 against the Euro. The Euro is flat at $1.135.

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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1783,20 -0,07% USD/ZAR 15,72 Top40 65993,00 -0,79%
Platinum 954,30 0,57% GBP/ZAR 20,76 Dow 30 35754,75 0,10%
Brent 75,93 0,82% EUR/ZAR 17,83 S&P 500 4701,21 0,31%
Copper 4,37 0,60% EUR/USD 1,13 FTSE 7337,35 -0,03%
Palladium 1856,00 0,22% USD/JPY 113,61 DAX 15687,09 -0,81%
Iron Ore 105,50 -0,47% BITCOIN 50624,00 Shanghai 3677,87 1,24%
Source:  Moneyweb & Investing.com