Daily Report 21 February 2022

SA Company News:

The JSE All Share Index was up 0.28% to 76 368. Massmart expects to report a net loss of between R2.14bn and R2.4bn for its year to 26 December, hit by the effects of July’s civil unrest as well as the timing of insurance payouts. MTN Group says in an update that headline earnings per share will be between 15% and 25% lower for the financial year ending December 2021, citing impairment and non-cash losses in some of its operations. The mobile operator is in the process of leaving Middle East to focus on Africa, where it sees growth potential despite social and economic challenges. The share price was up 0.6% to R184.40. Discovery said its headline earnings will be between 70% and 80% higher. Its local medical scheme Discovery Health saw strong new business inflows, an increase of 29% in annualised premium income from new clients. Sasol Ltd reported a net profit of R14.98 billion rand in the first six months of the fiscal year, up from R14.49 billion a year earlier. Sasol didn’t declare a dividend, citing the high level of macroeconomic uncertainty.

SA Economy:

The Automobile Association of SA appealed to Finance Minister, Enoch Godongwana not to increase general fuel and Road Accident Fund (RAF) levies in the 2022 Budget that he is set to deliver on Wednesday. SA shipped its first batch of lemon produce to China on Thursday after the long-awaited revised lemon protocol came into effect, opening a critical new market that is expected to generate R325m in new export revenue. The revised protocol eased the cold treatment requirements for lemons to a minimum of 3°C, measured based on the internal temperature of the fruit, for no less than 18 days.

Global Economy:

Investors are hoping that the conflict in Ukraine could be resolved diplomatically after the US Secretary of State agreed to a meeting with Russia’s foreign minister this week. U.S. President, Joe Biden and Russian President, Vladimir Putin have agreed in principle to hold a summit on the Ukraine crisis. The People’s Bank of China kept the one-year loan prime rate (LPR) unchanged at 3.7% and the the five-year rate was kept at 4.6%.

Global Company:

European shares were slightly higher on Friday, with major bourses adding around 0.2% each. US markets ended mostly lower on Friday, the Dow dropped 1.9%, while the S&P 500 lost 1.58%. The US market will be closed on Monday in observance of the Presidents’ Day holiday. Asian markets are trading lower this morning, tracking losses on Wall Street. The Hang Seng Index declined 0.6% to 24184, weighed down by tech and property sectors.

Commodities:

Gold is down 0.06% to $1 897/oz, while Platinum is lower by 2.16 % to $1 069/oz. Brent crude was 0.97% firmer at $93.82 a barrel.

Currencies:

The rand traded at R15.13 against the US Dollar, R20.56 against British Pound and R17.14 against the Euro. The Euro is firmer against the US Dollar  to trade at $1.137.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1897,30 -0,06% USD/ZAR 15,13 Top40 69650,00 0,35%
Platinum 1069,85 -2,16% GBP/ZAR 20,56 Dow 30 34079,18 -0,68%
Brent 93,82 0,97% EUR/ZAR 17,14 S&P 500 4348,87 -0,72%
Copper 4,53 -0,19% EUR/USD 1,14 FTSE 7513,62 -0,32%
Palladium 2345,77 -1,05% USD/JPY 114,96 DAX 15042,51 -1,50%
Iron Ore 131,00 -0,38% BITCOIN 39252,20 Shanghai 3483,10 0,08%
Source:  Moneyweb & Investing.com