Daily Report 20 January 2022

SA Company News:

The JSE All Share Index was up 1.6% and closed at an all-time high of 75 936 lifted mainly by commodity stocks with Kumba rallying 9%, Implats and Sibanye rising 6%. Compagnie Financiere Richemont SA shares rallied 5% after the company reported that revenue climbed 32% excluding currency shifts, reaching 5.66 billion euros (R99 billion) in the three months to December 2021. Jewelry was the best-performing unit which houses brands such as Cartier, Mont Blanc and Van Cleef & Arpels. Pan African Resources, which produces gold from its Barberton, Elikhulu and Evander operations, said production jumped 9.9% to reach over 108 000 ounces for the half-year ended in December. The company is now increasing its full-year production guidance to approximately 200 000 ounces. Capitec’s share price fell by 4% to R2 019 after the company issued a statement explaining the impact of its plans to issue R1 billion in new shares to employees. This will boost the ownership element of Capitec’s broad-based black economic empowerment scorecard by 1.5 points.

SA Economy:

The annual inflation rate in South Africa accelerated to 5.9% in December 2021, compared with 5.5% in November and was above market expectations of 5.7%. The Reserve Bank now needs to strike a balance of keeping inflation within its 3% – 6% target range without jeopardising the fragile economic recovery.  South Africa’s retail trade rose by 3.3% from a year earlier in November 2021, up from an upwardly revised 1.9% rise in the previous month and well above market estimates of a 1.9% gain.

Global Economy:

The People’s Bank of China cut the one-year loan prime rate to 3.70%, 10 basis points lower than last month’s 3.80% level. The five-year loan prime rate was also lowered to 4.60%, from 4.65%. British Prime Minister, Boris Johnson announced that most Covid restrictions would be lifted from next week. Producer inflation in Germany reached to a new all-time high of 24.2% in December 2021, soaring energy costs continue to make the biggest upward contribution.

Global Company:

U.S. stocks gave up early gains and closed lower. The Dow Jones fell 0.96% and the S&P 500 lost 0.97%. The Nasdaq Composite dropped 1.15%, putting it more than 10% below its Nov. 19 close. Morgan Stanley rose 0.5% after earnings per share came in at $2.08, compared to market expectations of $1.94. Bank Of America gained 1.8% after reporting a jump in fourth-quarter profit, benefiting from loan growth and a boom in global dealmaking activity. Procter & Gamble released earnings per share of $1.66, compared to market expectations of $1.66.


Gold is up 1.45% to $1 840/oz, while Platinum gained 4.4% to $1 025/oz. Brent crude was 0.9%, firmer at $88.52 a barrel after a key pipeline running from Iraq to Turkey was hit by an explosion.


The rand traded at R15.34 against the US Dollar, R20.88 against British Pound and R17.40 against the Euro. The Euro is firmer against the US Dollar to trade at $1.14.

Brent Oil Futures
Gold Futures
Top 40 Futures


Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1840,54 1,45% USD/ZAR 15,34 Top40 69513,00 1,77%
Platinum 1025,20 4,42% GBP/ZAR 20,88 Dow 30 35028,65 -0,97%
Brent 87,71 -0,97% EUR/ZAR 17,40 S&P 500 4532,76 -0,98%
Copper 4,51 1,98% EUR/USD 1,14 FTSE 7589,66 0,34%
Palladium 2001,50 4,85% USD/JPY 114,49 DAX 15809,72 0,24%
Iron Ore 129,00 3,10% BITCOIN 42015,00 Shanghai 3555,71 -0,05%
Source:  Moneyweb & Investing.com