Daily Report 14 December

SA Company News:

The JSE All Share Index closed 0.4% down at 71 430. Sasol has cut its production guidance for Secunda by about 8% for the second time in two months due to issues with coal availability and quality as well as a series of internal and external issues, including rain and mining incidents. Shoprite Holdings, said that its upmarket grocery chain, Checkers, has entered into a joint venture agreement with its delivery partner, RTT Group, as part of a push to grow its e-commerce business. 

SA Economy:

A South African panel appointed by the Department of Social Development, recommended the country gradually implement a basic income grant for adults from the ages of 18-59 as a permanent part of the social protection framework as the monthly welfare payment of R350, which was reintroduced after civil unrest in July, is set to end in March 2022. The Federated Hospitality Association of Southern Africa (Fedhasa) has warned that further lockdown restrictions over the December festive season could cause an industry-wide collapse and significant job losses. SA could be removed from UK travel ‘red list’ as soon as this week, ending mandatory hotel quarantine for travelers.

Global Economy:

Prime Minister Boris Johnson warned that the UK is facing a “tidal wave” of omicron infections. He set an end-of-year deadline for the country’s booster vaccination program. As the omicron variant continues to spread, Britain and Norway tightened lockdown restrictions as the first publicly confirmed death, due to the Omicron strain, was reported in Britain.  Industrial production in Japan rose by 1.8% month-over-month in October 2021, compared to market expectations of a 1.1% gain and after a 5.4% decline a month earlier.

Global Company News:

American markets pulled back on Monday. The S&P 500 fell 0.9% to 4 668 and the Dow Jones Industrial Average fell 320 points to 35 650 as investors remained cautious about how the Omicron variant will affect the economy.  Rio Tinto Group will cancel $2.3bn in debt owed by the Mongolian government, as the miner seeks to push forward with the expansion of the Oyu Tolgoi copper project. Oyu Tolgoi is one of the largest known copper and gold deposits in the world.  MTN Nigeria and Mafab Communications will each pay $273.6 million for Nigeria’s first 5G high-speed spectrum licenses that they were awarded, following an auction held by the telecom’s regulator yesterday.

Commodities:

The price of Gold was little changed at $1 786/oz, while Platinum lost 1.46% to $924/oz. Brent crude oil came under pressure amid demand concerns, trading at $74 per barrel.

Currencies:

The rand traded at R16.03 against the US Dollar, R21.19 against British Pound and R18.10 against the Euro. The Euro is slightly lower today, to trade at $1.127.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1786,32 0,19% USD/ZAR 16,03 Top40 65177,00 -0,33%
Platinum 923,90 -1,46% GBP/ZAR 21,19 Dow 30 35650,95 -0,90%
Brent 74,25 -1,47% EUR/ZAR 18,10 S&P 500 4669,15 -0,92%
Copper 4,29 -0,72% EUR/USD 1,13 FTSE 7231,44 -0,83%
Palladium 1683,00 -4,32% USD/JPY 113,57 DAX 15621,72 -0,01%
Iron Ore 108,50 5,53% BITCOIN 46834,10 Shanghai 3657,59 -0,65%
Source:  Moneyweb & Investing.com