Daily Report 27 January 2022

SA Company News:

The JSE All Share Index rose over 1.5% to 73 568, led by commodities, miners and a recovery in tech stocks. Some of the top gainers includes Sasol up 7%, Anglo American Platinum up 5.7%, Kumba rose 5% and MTN gained 5.8%. However, shares in Telkom fell 5.7% as the company awaits clarity on the scope of the investigation into allegations of corruption in Nigeria and Mauritius dating back to 2006. CEO of PPC, Roland van Wijnen, sold more than R25m of his shares in the company last week, that has sparked a four-day selling frenzy in the shares. He has however defended his move by saying he wanted to gain some liquidity while the foreign exchange market was favourable and that it is not a sign of a brewing storm at the company.

SA Economy:

The South African Reserve Bank is expected to hike interest rates today, with economists anticipating a 25-basis point rise in the repo rate to 4.0%. Higher inflation supports a move to increase interest rates. A presidential advisory panel has warned against a new basic income grant to replace the temporary R350 Covid relief grant for South Africans, telling President Cyril Ramaphosa that the grant would be incredibly risky and detrimental to the country’s economy.

Global Economy:

Geopolitical tensions were likely to remain in focus after U.S. President, Joe Biden said he would consider personal sanctions on President Vladimir Putin if Russia invaded Ukraine, as Western leaders stepped up military preparations and made plans to shield Europe from a potential energy supply shock. Fed Chairman Jerome Powell suggested that the central bank has plenty of room to raise interest rates before it would harm the economy. The Federal Open Market Committee said a quarter-percentage point increase to its benchmark short-term borrowing rate is likely in March.

Global Company:

Tesla Inc added 2% after reporting earnings, while AT&T Inc rose 2.2% after it beat market estimates for quarterly revenue on strong wireless and streaming demand. Samsung Electronics fell 2.46% after the company reported a 53% jump in operating profit in the fourth quarter of 2021. Hong Kong-listed shares of major Chinese tech names were also down sharply, Alibaba shares fell 6.76%, JD was down 4.92%, Baidu was down 3.84% and Tencent lost 3.21%. China Evergrande tumbled as much as 9.6% after investors were left dissatisfied with the company’s restructuring plans.

Commodities:

Gold is down 1.58 % to $1 819/oz, while Platinum gained 0.52 % to $1033/oz. Brent crude was 1.64% firmer at $88.55 a barrel.

Currencies:

The rand traded at R15.35 against the US Dollar, R20.67 against British Pound and R17.26 against the Euro. The Euro has weakened 0.26 against the US Dollar to trade at $1.120.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1819,42 -1,58% USD/ZAR 15,35 Top40 67364,00 2,22%
Platinum 1033,10 0,52% GBP/ZAR 20,67 Dow 30 34168,09 -0,38%
Brent 88,55 1,64% EUR/ZAR 17,26 S&P 500 4349,93 -0,15%
Copper 4,41 -1,72% EUR/USD 1,12 FTSE 7469,78 1,32%
Palladium 2326,50 5,65% USD/JPY 114,68 DAX 15459,39 2,17%
Iron Ore 133,50 0,00% BITCOIN 36087,00 Shanghai 3402,71 -1,55%
Source:  Moneyweb & Investing.com