Daily Report 16 February 2022

SA Company News:

The JSE All Share Index was up 0.2% to 75 853 on news that that some Russian troops in areas near Ukraine have started returning to their bases. Asset manager, Ninety One will vote to oppose the Heineken buyout of Distell, saying the price is too low and unfair to pension fund holders, who are forced to sell out rather than remain in an unlisted company. Heineken made an R180 a share offer for Distell. Glencore reported earnings before interest, taxation, depreciation and amortisation of $21.3bn in the group’s year to end-December, up 84%. Glencore’s shares were up 1.96% to R87.48 on the back of this news. Spar’s shares rose 2.6% to R175 per share after the company issued a trading update which stated the group’s turnover increased by 5.8% to R45.5 billion ($3 billion).

SA Economy:

The government expects the economy to grow at an average of just under 2% in the medium term. A strong package of reforms and fixes to public finances could boost GDP growth to 3.6% by 2025, the IMF said last week. PwC said that no significant tax changes are expected in next week’s Budget, as the revenue overrun is forecasted to be more than R200 billion higher than the original Budget estimate and that South Africa would continue benefiting from a high corporate income tax this year, buoyed by a long rally of elevated commodity prices.

Global Economy:

Nigeria’s annual inflation rate was at 15.6% in January 2022, little changed from 15.63% in the previous month. India has been running a significant trade deficit for more than 15 years. The trade deficit came in at $17.42 billion in January compared with a $14.49 billion deficit in the same month a year earlier. The annual inflation rate in India rose to a 7-month high of 6.01% in January, with food prices rising the most since October 2020.  China’s annual inflation rate fell to 0.9% in January 2022 from 1.5% a month earlier and compared with market forecasts of 1%. The UK job market remained strong, with staff on businesses’ payrolls up by 108 000 in January from the prior month, despite Omicron.

Global Company:

The U.S. stock indices rose after Russia said it had pulled back some troops from the Ukrainian border. The Dow Jones Industrial Average gained 1.2% to 34 988 and the S&P 500 climbed 1.6% to 4 471. The UK market closed 1% firmer at 7 609 as the latest data showed the job market remained strong. Asian markets are trading higher this morning, tracking overnight gains on Wall Street. The Shanghai Composite climbed 0.7% to 3 470 after the central bank continues to inject more liquidity into the financial system.

Commodities:

Gold is down 0.95% to $1 853/oz, while Platinum fell 0.39% to $1 024/oz. Brent crude was down 2.42% at $93.52 a barrel.

Currencies:

The rand traded at R15.12 against the US Dollar, R20.48 against British Pound and R17.17 against the Euro. The Euro slightly firmer against the US Dollar to trade at $1.136.

 

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1853,49 -0,95% USD/ZAR 15,12 Top40 69169,00 0,05%
Platinum 1024,60 -0,39% GBP/ZAR 20,48 Dow 30 34988,84 1,21%
Brent 93,52 -2,42% EUR/ZAR 17,17 S&P 500 4471,07 1,55%
Copper 4,54 0,82% EUR/USD 1,14 FTSE 7608,92 1,02%
Palladium 2251,00 -5,04% USD/JPY 115,64 DAX 15412,71 1,94%
Iron Ore 132,50 -9,81% BITCOIN 44124,30 Shanghai 3459,10 0,45%
Source:  Moneyweb & Investing.com