Daily Report 1 March 2022

SA Company News:

The JSE All Share Index gained 2.5% to close at 76 091 driven mainly by gains in the commodity sector. Sea Harvest posted a 5% increase in revenue to R4.6 billion, while its headline earnings increased 4% to R439 million mainly due to improved fishing conditions, increased vessel availability and factory efficiencies. Sea Harvest’s share price jumped 5% to R16.20. Implats has extended a mandatory offer to all RBPlat shareholders of R90 cash per share plus 0.3 ordinary shares in Impala. The offer closes on 17 June. Implats holds 35.66% of the RBPlat shares in issue, while Northam Platinum has acquired 34.95% of RBPlat’s share capital with an option to increase this to 38% over time. RCL Foods reported a 22% increase in headline earnings per share to 72.7c and its revenue grew 9% to R17 billion. The company declared an interim dividend of 15c per share. Mondi and Barloworld, which have significant investments in Russia, have fallen by 8% and 15% respectively on the back of sanctions imposed on Russia by the west.

SA Economy:

As the west isolates Russia, this could spell a potential economic downturn for South Africa as it is one of our major trading partners. Russia exported goods valued at approximately R458 million to South Africa and imported products valued at R1.3bn from South Africa in September 2021. Russia’s most important imports from South Africa included citrus fruit, cars, manganese ore, platinum, and apples and pears.  The trade surplus in South Africa dropped to R3.55bn in January, following a trade surplus of R29.02bn in the previous month. The private sector credit in South Africa rose 3.12% in January on an annual basis, compared to a rise of 2.58% in the prior month. Markets were anticipating the private sector credit to rise 2.80%.​

Global Economy:

The UK, US and the EU, as well as Canada and Japan agreed to ban Russian financial institutions from the global payments system SWIFT.The EU and the UK also banned Russian airplanes from entering their airspace. Ukraine and Russia fail to agree on cease-fire. Negotiators, who met in Belarus, returned for consultations and agreed to meet again in the coming days.

Global Company:

Societe Generale shares fell 10% as the French bank owns Russia’s Rosbank, while carmaker Renault which controls Russian carmaker Avtovaz, fell 7%. The Shanghai Composite was up 0.28% and Japan’s Nikkei was up 1.2%, while the Hang Seng was flat. The Dow Jones slipped 166 points to 33 892 and the S&P 500 closed 0.24% lower at 4 373, with bank shares falling the most.

Commodities:

Gold is down 0.22% to $1 905/oz, while Platinum is 01.53% lower at $1 049/oz. Brent crude was 3% lower at $99.22 a barrel.

Currencies:

The rand traded at R15.39 against the US Dollar, R20.65 against British Pound and R17.24 against the Euro. The Euro resumed its decline, dropping 0.11% to $1.120.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1905,66 -0,22% USD/ZAR 15,39 Top40 69624,00 2,74%
Platinum 1049,00 -1,53% GBP/ZAR 20,65 Dow 30 33892,60 -0,49%
Brent 99,22 -3,28% EUR/ZAR 17,24 S&P 500 4373,79 -0,25%
Copper 4,51 0,17% EUR/USD 1,12 FTSE 7458,25 -0,42%
Palladium 2490,02 -0,48% USD/JPY 115,10 DAX 14461,02 -0,73%
Iron Ore 136,50 0,73% BITCOIN 43439,30 Shanghai 3487,43 0,95%
Source:  Moneyweb & Investing.com