Daily Report 26 January 2022

SA Company News:

The JSE All Share Index rose 0.2% to 72 315. In a trading update from Cashbuild for the three months to end-December, the building material retailer reported an 11% fall in revenue. Sasol Ltd. reported a 31% rise in revenue for the first half of fiscal 2022 as it benefited from a favourable macroeconomic environment, with higher crude oil prices, refining margins and chemicals prices together with increased demand following the easing of Covid-19 lockdown restrictions. Food producer, AVI, reported an increase in revenue of 2.3% for a six-month trading period that ended 31 December 2021, while headline profit is expected to be up by between 5.5% and 7.5% for the same period.  The company’s share price rose almost a percent to R75.60 on the back of this news. In a trading update for the year to end-December, ArcelorMittal reported that it expects headline profit per share of between R6 and R6.30 – from a loss of R1.80 for the previous year. Its share price jumped 18% to R10.71, following the update.

SA Economy:

The composite leading business cycle indicator in South Africa increased 0.6% from a month earlier in November 2021, citing a favourable macroeconomic environment. The SA Reserve Bank’s first monetary policy committee (MPC) meeting of the year takes place tomorrow. With inflation, as measured by Stats SA’s consumer price index (CPI), at 5.9% year on year in December, economists now expect the interest rate to increase by 0.25%.  

Global Economy:

The IFO Business Climate indicator for Germany rose to 95.7 in January 2022, recovering from a ten-month low of 94.8 it reached in December and beating market expectations of 94.7. The Central Bank of Nigeria kept its monetary policy rate steady at a six-year low of 11.5% in January 2022, in line with market forecasts. Governor Godwin Emefiele signaled late last year that the existing monetary policy stance has supported the growth recovery and should be allowed to continue for a “little longer” to stabilise prices and achieve sustainable growth. The International Monetary Fund has downgraded its 2022 global growth forecast to 4.4%. The revised outlook is largely due to lower growth in the world’s two largest economies; the U.S. and China.

Global Company:

Credit Suisse said fourth-quarter pretax income should be around break-even, weighed by litigation provisions of roughly CHF500 million. Johnson & Johnson forecasted $3 billion-$3.5 billion earned in revenue for its COVID-19 vaccine this year, compared to $2.39 billion that it generated in 2021, even as the drugmaker faces manufacturing issues and uneven demand for the shot. Microsoft reported better-than-expected earnings and revenue for the fiscal second quarter. Earnings of $2.48 per share vs. $2.31 per share, as expected by analysts, and revenue of $51.73 billion, vs. $50.88 billion.

Commodities:

Gold is up 0.27% to $1 848/oz, while Platinum is down 0.12% to $1 027/oz. Brent crude was 1% firmer at $87.10 a barrel.

Currencies:

The rand traded at R15.26 against the US Dollar, R20.61 against British Pound and R17.24 against the Euro. The Euro is flat against the US Dollar at $1.129.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1848,14 0,27% USD/ZAR 15,26 Top40 65870,00 0,33%
Platinum 1027,70 -0,12% GBP/ZAR 20,61 Dow 30 34297,73 -0,19%
Brent 87,10 1,02% EUR/ZAR 17,24 S&P 500 4356,45 -1,23%
Copper 4,49 1,65% EUR/USD 1,13 FTSE 7371,46 1,00%
Palladium 2195,00 2,69% USD/JPY 113,93 DAX 15123,87 0,75%
Iron Ore 133,50 2,62% BITCOIN 37431,70 Shanghai 3455,55 0,12%
Source:  Moneyweb & Investing.com