Daily Report 24 January 2022

SA Company News:

The JSE All Share Index closed 1.83% lower at 74 835, dragged down by miners and tech stocks. The Foschini Group, who owns retailers like Markham, Jet, @home, American Swiss, Sterns and Totalsports, reported turnover growth of 17.3% over the quarter to end-December, compared to the same period in 2020. The company’s share price jumped 6% to R137.85 on Friday on the back of this news. Telkom has withdrawn its court action that would have halted the upcoming radio frequency spectrum auction, expected in March. Truworths Group sales rose 2.2% to R9.9bn in the half year to December 2021. Truworths Africa’s sales rose 1.4% to R7.4bn, with trading in SA disrupted by civil unrest from mid-July to end-August. The company expects headline earnings per share (Heps) of 455c.

SA Economy:

The World Bank has approved a loan of $750 million to South Africa linked to COVID-19, aiming to help protect the poor and support economic recovery from the pandemic. The low-interest loan will contribute towards addressing the financing gap stemming from additional spending in response to the Covid-19 crisis. The SA Reserve Bank’s first monetary policy committee (MPC) meeting of the year takes place on 27 January, with consumers and businesses expects another interest rate hike of 0.25% as inflation has exceeded economists’ forecasts. Eskom’s Chief Financial Officer, Calib Cassim, has warned that the National Energy Regulator of South Africa (Nersa) will need to increase electricity tariffs by 20.5%, because any shortfalls in revenue generation will still have to be covered by the government, as a major shareholder.

Global Economy:

Japan Services PMI plunged to 46.6 in January 2022 from 52.5 in the previous month. The US Federal Reserve will meet on Tuesday and Wednesday, where policy makers are expected to lay the groundwork for raising interest rates, likely in March. US-Russia tension over Ukraine continues as Russia is continuing a military buildup near the Ukrainian border but denies that it’s planning a further invasion of the nation. The US ordered the family members at its embassy in Kyiv to leave Ukraine.

Global Company:

The FTSE 100 dropped 1.3% to close at 7 494 on Friday. US stocks also closed sharply lower after disappointing earnings results from companies such as Netflix and Peloton. The Dow Jones lost 1.31% and the S&P 500 dropped 1.9%. Shares of China Evergrande Group jumped more than 13%, after the property developer said it would appoint an official from a unit of state asset manager, China Cinda Asset Management, to its board. Shell said that it has officially changed its name from Royal Dutch Shell Plc to Shell Plc as part of its plan to scrap its dual share structure and move its head office from the Netherlands to Britain.

Commodities:

Gold is up 0.16% to $1 837/oz, while Platinum lost 0.17 % to $1032/oz. Brent crude was 0.86% firmer at $88.53 a barrel.

Cryptocurrencies.

Bitcoin fell to below $35 000, losing nearly half of its value since hitting a record high of $69,000 in November 2021.

Currencies:

The rand traded at R15.10 against the US Dollar, R20.45 against British Pound and R17.11 against the Euro. The Euro has weakened against the US Dollar slightly to trade at $1.132.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1838,28 -0,07% USD/ZAR 15,12 Top40 67482,00 -3,12%
Platinum 1037,00 -0,62% GBP/ZAR 20,48 Dow 30 34265,37 -1,31%
Brent 87,59 0,21% EUR/ZAR 17,12 S&P 500 4397,93 -1,93%
Copper 4,46 -1,30% EUR/USD 1,13 FTSE 7491,40 -1,25%
Palladium 2111,12 2,18% USD/JPY 113,68 DAX 15575,36 -2,16%
Iron Ore 133,00 3,01% BITCOIN 35086,70 Shanghai 3524,10 0,14%
Source:  Moneyweb & Investing.com