Daily Report 01 February 2022

SA Company News:

The JSE All Share Index rose 1.2% to close at 74 305 supported by mobile operator MTN Group and Naspers. The JSE gained 0.8% in the month of January. Sibanye-Stillwater has secured full ownership of the Kroondal mine after Anglo American Platinum (Amplats) opted to bow out of the low-cost, mechanised operation because of its short remaining lifespan. Sibanye will extend the life of the mine until 2029. Wescoal is seeking shareholder approval for a name change that will reflect the junior miner’s strategic direction away from coal. The company said the board had proposed to change the name from Wescoal to Salungo Group Limited. If approved, Wescoal will trade as Salungo from 6 April onwards. AngloGold Ashanti said it expects headline earnings for the year December 2021 to be between $572 million and $642 million, with headline earnings per share of between $1.37 and $1.53 cents, a decrease of 36% to 42% from the comparative period.

SA Economy:

South Africa’s private sector credit grew by 2.58% year-on-year in December 2021, after a 2.46% gain a month earlier and compared with market forecasts of 2.6%. South Africa’s trade surplus narrowed to R30.1 billion in December 2021, from R35.8 billion in the previous month. The Automobile Association has repeated its call for a full review of South Africa’s petrol price, following yet another significant hike for February. The price of petrol price will increase by 53 cents a litre and diesel by 80 cents a litre on Wednesday. Covid-19 restrictions will be eased further, including those without symptoms will no longer have to isolate, even if they test positive. 

Global Economy:

The US and UK are currently preparing sanctions to levy on Russia should it invade Ukraine. Such a move could have severe repercussions for Europe’s energy supplies if Russia decides to limit its natural gas output to the region. Russia denies any plan to invade. Investors remain uncertain as central banks start to raise interest rates, with the Bank of England expected to hike rates by another 0.25% on Thursday to curb inflation. The U.S. jobs report for January to be released on Friday will be a key focus for markets. The Fed is closely watching employment data as it considers higher inflation and monetary policy.

Global Company:

MTN Nigeria says its mobile subscriber base fell to 68.5 million in the year to end-December as it felt the pressure of state restrictions on new SIM activations. The FTSE 100 erased early gains to close unchanged at 7 464. US stocks closed sharply higher with the Dow Jones up 406 points to 35 131 and the S&P up 83 points to 4 515 driven mainly by tech shares. Markets in China and Hong Kong are closed today for the Lunar New Year holiday.

Commodities:

Gold is up 0.32% to $1 797/oz, while Platinum gained 0.94% to $1 021/oz. Brent crude was 0.35% firmer at $89.31 a barrel. 

Currencies:

The rand traded at R15.39 against the US Dollar, R20.71 against British Pound and R17.29 against the Euro. The Euro is flat against the US Dollar to trade at $1.123.

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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1797,39 0,32% USD/ZAR 15,39 Top40 67821,00 1,18%
Platinum 1021,30 0,94% GBP/ZAR 20,71 Dow 30 35148,14 1,18%
Brent 89,31 0,35% EUR/ZAR 17,29 S&P 500 4515,55 1,85%
Copper 4,33 0,63% EUR/USD 1,12 FTSE 7464,37 -0,02%
Palladium 2343,00 -1,20% USD/JPY 115,01 DAX 15471,20 0,98%
Iron Ore 143,50 0,00% BITCOIN 38277,20 Shanghai 3361,44 0,00%
Source:  Moneyweb & Investing.com