Daily Report 07 February 2022

SA Company News:

The JSE All Share Index closed 0.3% higher on Friday at 75 206, supported by commodity shares and tech stocks. Telkom said that active mobile customers grew 10% year on year to 16.4 million to end-December, but it was insufficient to offset the continued decline of its traditional fixed-line business. The group’s third quarter revenue fell 2.3% to R10.78bn. Hudaco, which imports and distributes automotive, industrial and electrical businesses, has reported a 56% increase in its headline earnings per share for the year to end-November, compared to the previous year. Its final dividend increased by 27% to 520 cents per share. Sibanye-Stillwater completed the acquisition of the Sandouville nickel processing facility in France.

SA Economy:

Eskom said it suspended scheduled power cuts following an improvement in generation capacity and a significant recovery in the emergency generation reserves. Investors will closely monitor the State of The Nation address by President Cyril Ramaphosa on the 10th of February. The President may announce in his state of the nation address that jobs in some sectors of the economy will soon be reserved for SA citizens only, in a bid to reverse high unemployment and increasing inequality. The auction of the 5G spectrum is set to go ahead. Icasa will announce the qualified bidders on 21st February and the auction will take place in March.

Global Economy:

The US unemployment rate edged up to 4.0% in January 2022, slightly above market expectations of 3.9%. The US economy unexpectedly added 467 000 payrolls in January, much better than market forecasts of 150 000. Chinese composite PMI fell to a five-month low of 50.1 in January 2022 from 53.0 in the prior month. Investors are also keeping an eye on the uncertainty on the Ukrainian border, with White House warning that Russian President, Vladimir Putin could order an attack within days or weeks, as diplomatic efforts to find a way out of the situation continues.

Global Company:

Stellar results from online retail giant Amazon lifted investors’ mood on Friday and helped to ease some concerns regarding the health of the tech sector.  The FTSE 100 fell 0.3% to 7509 points, despite a gain in energy shares such as Shell and BP as the price of oil jumped above $92. The Shanghai Composite jumped 1.6% to 3 415, as mainland stocks resumed trading following the week-long Lunar New Year holiday.

Commodities:

Gold is up 0.05% to $1 807/oz, while Platinum fell 0.98 % to $1 026/oz. Brent crude was 3.7% firmer at $92.78 a barrel.

Currencies:

The rand is trading at R15.50 against US Dollar, its lowest since 28th January, R20.98 against British Pound and R17.70 against the Euro. The Euro is stronger against the US Dollar to trade at $1.142.

Brent Oil Futures
.
Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1807,89 0,05% USD/ZAR 15,50 Top40 68679,00 0,32%
Platinum 1026,40 -0,98% GBP/ZAR 20,98 Dow 30 35089,74 -0,06%
Brent 92,78 3,76% EUR/ZAR 17,70 S&P 500 4500,54 0,51%
Copper 4,45 -0,62% EUR/USD 1,14 FTSE 7516,40 -0,17%
Palladium 2278,50 -3,95% USD/JPY 115,32 DAX 15099,56 -1,78%
Iron Ore 143,50 0,00% BITCOIN 42700,40 Shanghai 3422,31 1,78%
Source:  Moneyweb & Investing.com