Daily Report 17 January 2022

SA Company News:

The JSE All Share Index closed 1% weaker on Friday led by a sell-off in technology stocks. Fed officials signaled their intention to combat inflation aggressively with the prospect of a first-rate hike in March. Technology stocks – seen as most sensitive to higher rates – tumbled on the back of this news. Naspers had fallen 1.72% to R2 598 and Prosus 1.21% to R1 363. The rally in the oil price this morning will bode well for stocks such as Sasol and MTN. Oil futures rose and were set for a fourth week of gains, boosted by supply constraints and a weaker dollar, though an imminent release of crude reserves from China looms. Implats makes a mandatory offer to acquire shares in RBPlat that it does not already hold. Last day to trade in RBPlat Shares in order to participate in the Offer will be Monday, 13 June 2022.

 

SA Economy:

South Africa’s state of disaster was extended by another month and is now set to expire on February 15th, 2022. Health Minister, Phaahla, said that all provinces have now reached the peak of the fourth wave, while Gauteng has officially exited its fourth wave. Provincial governments are heading the way of legal action against Eskom’s plans to hike electricity prices by 20.5% this year.

 

Global Economy:

The British economy grew much stronger than expected. The gross domestic product in the United Kingdom grew by 0.9% from a month earlier in November 2021, accelerating from an upwardly revised 0.2% expansion in October and beating market expectations of 0.4%. Investors continued to monitor the geopolitical situation surrounding Ukraine, as the US is said to be putting pressure on European allies to agree on potential sanctions against Russia. The People’s Bank of China has cut rates on the one-year medium-term lending facility by 10 basis points to 2.85%, in a bid to provide more support for the slowing economy. China’s GDP grew 4.0% in the fourth quarter compared with a year earlier, better than forecasts for 3.8% growth.

 

Global Company:

Social media giant Facebook, now known as Meta Platforms, is being sued in the U.K. for at least 2.3 billion pounds ($3.15 billion) over claims that more than 44 million users had their data exploited. US markets will be closed for a public holiday today, so trading volumes will be lighter. The fourth-quarter earnings season continues this week, with companies such as Bank of America, Goldman Sachs, Morgan Stanley, P&G and Netflix reporting their results. Credit Suisse Chairman, António Horta-Osório is leaving the bank following an investigation into his personal use of corporate aircraft and travel, which violated Covid-19 quarantine rules.

 

Commodities:

Gold is down 0.26% to $1 817/oz, while Platinum is flat at $967/oz. Brent crude is 2.63% firmer at $86.36 a barrel.

 

Currencies:

The rand traded at R15.40 against the US Dollar, R21.06 against British Pound, and R17.58 against the Euro. The Euro is flat against the US Dollar at $1.141.

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1817,70 -0,26% USD/ZAR 15,40 Top40 68448,00 -1,08%
Platinum 967,40 -0,05% GBP/ZAR 21,06 Dow 30 35911,81 -0,56%
Brent 86,36 2,63% EUR/ZAR 17,58 S&P 500 4662,85 0,08%
Copper 4,43 -2,01% EUR/USD 1,14 FTSE 7542,95 -0,28%
Palladium 1879,78 -0,52% USD/JPY 114,49 DAX 15883,24 -0,93%
Iron Ore 127,00 0,00% BITCOIN 42801,80 Shanghai 3543,03 0,63%
Source:  Moneyweb & Investing.com