Daily Report 15 February 2022

SA Company News:

The JSE All Share Index close 0.8% lower at 75 765, joining a global sell-off after the US warned that military conflict between Russia and Ukraine may be imminent. Dis-Chem says retail revenue increased 15.5% to R11.4bn over the 21 weeks to 26 January as the return of shoppers to busier centres helped boost revenue in the last few months of 2021. The company’s shares traded 1.8% lower at R37.07. A trading update from Shoprite said that it expects its earnings per share, from continuing operations for the 26 weeks to 27 December, to increase by between 27.8% and 33.8%. The Group will release its interim results for the six months ended 2nd January 2022 on Tuesday, 8th March 2022. In a trading update for the year to end-December, Nedbank expects its headline earnings per share to increase by between 108% and 118%. Its results are expected on the 9th of March.

SA Economy:

President Cyril Ramaphosa’s cabinet has extended South Africa’s national state of disaster until March 15th but said that work is now being done to bring it to a close next month.  The government is considering taking over part or all of Eskom’s R392 billion debt as it seeks to restructure the cash-strapped power utility’s loan obligations, according to the International Monetary Fund.

Global Economy:

The Finance Ministers of the G7 group of large economies warned Russia of “massive” economic consequences if it chose to invade Ukraine, which could disrupt the global recovery from the pandemic. Investor’s attention will be on Wednesday’s release of the Fed’s minutes from the January meeting, as investors look for any indications on whether the central bank is likely to hike rates by half a percentage point at its upcoming March meeting. Japan’s economy expanded 5.4% on an annualized basis in the last quarter of 2021, compared with market consensus of a 5.8% increase.

Global Company:

The FTSE 100 fell 1.8% to 7 522 points, with financial and travel stocks were the worst performers. Shares in Asia were trading mixed as investors in that region continue to monitor tensions between Russia and Ukraine. The Shanghai composite gained 0.24% after the Chinese central bank pumped more liquidity to shore up economic growth and the Hang Seng traded 1.18% lower. In the US, the Dow Jones Industrial Average fell 171.89 points to 34 566 while the S&P 500 slipped 0.38% to 4 401.

Commodities:

Gold is at an 8th month high of $1 871/oz as we see a flight to safety in gold, while Platinum is down 0.11% to $1 028/oz. Brent crude was 0.76% firmer at $95.78 a barrel.

Currencies:

The rand traded at R15.13 against the US Dollar, R20.48 against British Pound and R17.12 against the Euro. The Euro is firmer against the US Dollar to trade at $1.131.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1871,07 0,67% USD/ZAR 15,13 Top40 69131,00 -0,80%
Platinum 1028,55 -0,11% GBP/ZAR 20,48 Dow 30 34566,17 -0,50%
Brent 95,78 0,76% EUR/ZAR 17,12 S&P 500 4401,67 -0,39%
Copper 4,50 0,19% EUR/USD 1,13 FTSE 7531,59 -1,72%
Palladium 2364,50 2,18% USD/JPY 115,29 DAX 15113,97 -2,06%
Iron Ore 145,50 0,00% BITCOIN 43600,20 Shanghai 3443,37 0,66%
Source:  Moneyweb & Investing.com