Daily Report 14 February 2022

SA Company News:

The JSE All Share Index closed 0.26% lower on Friday at 76 382 with losses coming from Gold Fields Limited, AngloGold Ashanti, Sasol, Richemont and Naspers. British American Tobacco reported a 7% jump in full year adjusted revenue along with a dividend increase and a share repurchase programme worth 2 billion pounds for 2022. Bidvest expects headline earnings per share to rise as much as 40% in the group’s half year to end-December 2021. Bidvest’s shares rose 11% to R220.00 per share. Royal Bafokeng Platinum has recommended that its shareholders accept the takeover offer from Impala Platinum that values it at R43bn. The deal will allow Implats to contend for the status as the world’s largest producer of platinum group metals.

SA Economy:

South Africa published proposed changes to the electricity regulation act that will facilitate the opening of the national power grid to private generators. The cabinet has signed off on an ANC proposal that jobs in some sectors of the economy be reserved for SA citizens, a move designed to tackle the country’s record unemployment, and which could feed into anti-immigrant sentiment.

​Global Economy:

The ongoing geopolitical tensions will likely keep investors on edge this week as Russia deployed some of its most powerful weapons and best-trained battalions around Ukraine and the prospect of imminent war looming in Europe. Moreover, sentiment was also dented amid a recent spike in Covid infections in Hong Kong. The U.S. retail sales report for January highlights this week’s release of economic data which also includes Japan’s fourth-quarter GDP.

Global Company:

Asian markets are trading weaker with the Shanghai Composite falling 0.6% to 3 440 with bank shares leading the index lower and the Hang Seng was down 1.5% to 24 530 with losses led by tech and property sectors. NetEase fell 5.5%, JD.com was 3.6% lower and Alibaba Group shed 3.1%. In Europe, the FTSE 100 closed 0.2% down at 7 661 on Friday on concerns over inflationary pressures and global monetary policy tightening.  The Dow tumbled 1.43% to 34 738 and the S&P 500 dropped 1.9% to 4 418 as growing tensions between Russia and Ukraine escalated.

Commodities:

Gold is up 1.8% to $1 858/oz, while Platinum gained 0.23% to $1 029/oz. Brent crude is 3.78% firmer at $95.05 a barrel as the US warned of an imminent Russian invasion of Ukraine.

Currencies:

The rand traded at R15.23 against the US Dollar, R20.66 against British Pound and R17.29 against the Euro. The Euro is flat against the US Dollar to trade at $1.134.