Daily Report 13 January 2022

SA Company News:

The JSE All Share Index advanced 2.5% to hit a new record high of 75 884. Naspers jumped more than 9% to R2 680 a share, while Sasol was up 6% to R285 a share and Anglo American was up 4% to R711 a share. There were also huge gains in the platinum sector with Impala Platinum and Anglo American Platinum both up 3%.  Today the JSE will most like take a breather after yesterday’s big move.

SA Economy:

Calls have been made for President Cyril Ramaphosa to allow the national state of disaster to lapse on January 15th, the day it needs to be renewed if it is to remain in place, as many argue it is no longer considered necessary. With companies and residents facing a potential 20% to 40% hike in electricity prices, industrial gas users also face a massive pricing problem, with the Industrial Gas Users Association of Southern Africa representing these users, claiming that gas prices could shoot up by 220% because of a ‘flawed’ pricing methodology used by energy regulator Nersa.

Global Economy:

India’s inflation rate rose to 5.59% in December 2021 up from 4.91% in the previous month, but below market expectations of 5.80%. US consumer inflation rose at an annual rate of 7% in December, the highest in nearly four decades, from 6.8% in November. It is now widely expected that the U.S. central bank will hike interest rates at least four times this year, starting as soon as March.

Global Company:

Shares in Asia are mixed today, as global investors assessed that the strong U.S. inflation data was not worrying enough to change the Federal Reserve’s already hawkish rates outlook. The S&P 500 gained 0.3%, while the Dow Jones Industrial Average added 0.1%.  Traders now turn their attention to the earnings season with Wells Fargo, Citigroup, JPMorgan all due to report tomorrow.

Commodities:

Gold is steady at $1 825/oz, while Platinum is 1.47% lower at $972.70/oz. Brent crude is 0.63% lower at $84.36 a barrel. The price of copper climbed to $4.5 per pound, touching the highest level since end-October, lifted by a weaker dollar and expectations of stronger demand from China.  Spot price of Iron ore, which contains 63.5% of Iron, rose $130 a ton on hopes for an easing of steel production controls in China.

Crypto Currencies:

Bitcoin is up 2.65% to $43815.21, up for 2 consecutive days. Ethereum is up 4.28% to $3370.80 and is up 9.5% over the past 2 days.

Currencies:

The rand traded at R15.35 against the US Dollar, R21.05 against British Pound and R17.55 against the Euro. The Euro is stable against the US Dollar to trade at $1.146.

Brent Oil Futures
.
Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1825,92 0,23% USD/ZAR 15,35 Top40 68804,00 2,18%
Platinum 972,70 0,37% GBP/ZAR 21,05 Dow 30 36290,32 0,11%
Brent 84,23 0,59% EUR/ZAR 17,55 S&P 500 4726,35 0,28%
Copper 4,54 1,53% EUR/USD 1,15 FTSE 7551,72 0,80%
Palladium 1897,03 -1,47% USD/JPY 114,47 DAX 16010,32 0,43%
Iron Ore 126,50 4,74% BITCOIN 43617,90 Shanghai 3555,26 -1,14%
Source:  Moneyweb & Investing.com