Daily Report 09 February 2022

SA Company News:

The JSE All Share Index closed 0.6% up at 76 091. The long-awaited auction of spectrum has been set for 8 March. Telkom and five other companies, Cell C, MTN, Vodacom, Rain and Liquid Telecoms have all applied to take part in the auction. Sappi reported first quarter results for the period ended December 2021, where the company said that sales were up 46% and earnings per share for the quarter was 20 US cents compared to a 0.03 US cents loss.

SA Economy:

Fedhasa has urged President Cyril Ramaphosa to end the national state of disaster ahead of his state of the nation address tomorrow. In terms of the national state of disaster, the government instituted measures to curb the spread of Covid-19, such as restrictions on indoor and outdoor gatherings, the sale of alcohol and international travel. The hospitality sector has largely borne the brunt of these lockdown regulations in terms of business closures and job losses. The South African Chamber of Commerce and Industry’s business confidence index increased by 2.1 index points to 94.1 between December 2021 and January 2022. 

Global Economy:

Developments over the Russia-Ukraine situation is still closely monitored, with French president, Emmanuel Macron saying he believed steps can be taken to de-escalate the crisis and called on all sides to stay calm. The next 48 hours will be quite interesting, with the release of the Fed minutes and U.S. inflation data. The Bank of Japan has warned that China’s “zero-COVID” restrictions could weigh on world growth by prolonging supply chain disruptions and global inflationary pressures.

Global Company:

European stock markets traded higher, helped by strong results from BP. The company posted a net profit of $7.6 billion (about R273 billion), compared with a loss after tax of $20.3 billion in 2020. US markets ended mostly higher yesterday where the Dow Jones Industrial Average gained 1% to 35 462 and the S&P 500 gained 0.84% to 4 521 as investors rotated into materials, technology, and financial shares. The S&P 500 is still down 5.5% year to date after the sell-off in January. Pfizer shares fell 2.8% after the company’s fourth-quarter revenue came in lower than analysts expected. Asian markets are trading higher this morning, tracking the overnight rally on Wall Street.

Commodities:

Spot gold reached a 2-week high on inflation worries and continuing tension between the Ukraine and Russia. Gold is up 0.3% to $1 825/oz, while Platinum gained 1.2% to $1033/oz. The price of oil fell 1.8% to $91 a barrel as the US and Iran continued nuclear discussions. 

Currencies:

The rand traded at R15.36 against the US Dollar, R20.81 against British Pound and R17.54 against the Euro. The Euro has weakened against the US Dollar to $1.141 after European Central Bank President, Christine Lagarde said there are no signals that the Eurozone inflation will be significantly above the ECB target over the medium term.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1825,83 0,30% USD/ZAR 15,36 Top40 69527,00 0,47%
Platinum 1033,90 1,28% GBP/ZAR 20,81 Dow 30 35544,89 1,28%
Brent 91,31 -1,80% EUR/ZAR 17,54 S&P 500 4531,32 1,05%
Copper 4,45 -0,26% EUR/USD 1,14 FTSE 7567,07 -0,08%
Palladium 2238,50 -0,20% USD/JPY 115,50 DAX 15242,38 0,23%
Iron Ore 146,00 1,71% BITCOIN 43685,70 Shanghai 3479,98 0,96%
Source:  Moneyweb & Investing.com