Daily Report 12 January 2022

SA Company News:

The JSE All Share Index gained 0.3% to end the day at 73 971. Alphamin Resources, a company that produces 4% of the world’s mined tin from its high-grade operation in the Democratic Republic of Congo with a secondary listing on the JSE’s AltX, declared a full-year dividend of 0.03 Canadian Dollars (37 South African cents) per share. Tin prices had increased tremendously, rising from about $15 000 a ton in April 2020 to an all-time high of more than $39 600 a ton currently. MTN SA has appointed Michele Gamberini as its new Chief Technology and Information Officer (CTIO) effective 1 February. He joins MTN from Telecom Italia. The CEO of Altron, Mteto Nyati, will be stepping down from his position at the end of June following the end of his five-year term. Glencore has completed the purchase of Cerrejón from BHP and Anglo American, giving it full ownership of the Colombian coal mine.

SA Economy:

Manufacturing production shrank by 0.7% year-on-year in November 2021, following a downwardly revised 8.5% decline in October. Koeberg power station, situated north of Cape Town, is approaching the end of its 40-year design life and operating license. Energy regulator Nersa has published an R3billion expansion application by Eskom to amend its generation license and extend its operational life for a further 20 years.  Eskom has already appointed a contractor and hopes to have construction completed in 30 months.

 

Global Economy:

U.K. retail sales rose 2.1% in December, bringing full-year growth to 9.9%. Fed Chair, Jerome Powell’s comments gave investors a clear indication of how the Fed plans to start normalizing monetary policy in the coming months and that the sense of urgency on tightening interest rates has not been heightened. Investors await US inflation data due later today to gain insight into the economy. China’s annual inflation rate fell to 1.5% in December 2021 from a 15-month high of 2.3% a month earlier.

 

Global Company:

Investors are gearing up for the start of earnings season this week. The reports will be particularly important for technology firms that will need to post strong growth to justify their valuations.Tesla shares rose after the U.S. electric vehicle maker sold 70 847 China-made vehicles in December. Shares of Intel rose 1.1% after the company named Micron Technology Chief Financial Officer, David Zinsner as its new CFO.UBS downgraded IBM to a sell, from a neutral rating. The share price fell 3%.

 

Commodities:

Gold is up 1% to $1 821/oz, while Platinum gained 3% to $969/oz. Brent crude holding above $83 per barrel.

 

Currencies:

The rand traded at R15.53 against the US Dollar, R21.18 against British Pound and R17.66 against the Euro. The Euro is flat against the US Dollar slightly to trade at $1.137.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1821,65 1,09% USD/ZAR 15,53 Top40 67302,00 0,28%
Platinum 969,10 3,36% GBP/ZAR 21,18 Dow 30 36252,02 0,51%
Brent 83,73 3,25% EUR/ZAR 17,66 S&P 500 4713,07 0,91%
Copper 4,47 1,79% EUR/USD 1,14 FTSE 7491,37 0,62%
Palladium 1925,00 0,81% USD/JPY 115,35 DAX 15941,37 1,09%
Iron Ore 120,50 0,00% BITCOIN 42630,30 Shanghai 3595,85 0,88%
Source:  Moneyweb & Investing.com