Daily Report 14 March 2022

SA Company News:

The JSE All Share Index closed 0.3% down on Friday at 73 686. Absa reported headline earnings per share at 2 147.1 cents for the year to 31 December, compared to 730.9 cents a year earlier. A final ordinary dividend of 475 cents per ordinary share was declared and payment will be made on Monday, 25 April 2022. British American Tobacco PLC announced that they will no longer have a presence in Russia. Ukraine and Russia accounted for 3% of group revenue. In a trading update from Remgro, the company expects an increase in headline earnings per share to be between 580.0 cents and 605.0 cents compared to the HEPS of 247.4 cents reported for the six months ended 31 December 2020. This is a n expected increase of between 134.4% and 144.5%. The company said the increase in headline earnings for the current period is mainly due to the recovery of the earnings of most of Remgro’s underlying investee companies.

SA Economy:

The Civil Aviation Authority suspended Comair’s operating licence indefinitely at the weekend due to non-compliance with safety regulations. This decision resulted in hundreds of passengers being left stranded at airports across South Africa over the weekend. Eskom has suspended loadshedding. Eskom said its teams have returned four generation units to service since Friday and its emergency generation reserves have also sufficiently recovered.

Global Economy:

China has placed all 17 million residents in Shenzhen under lockdown as it battles a flare-up of Covid-19 cases across the country. This has raised global supply chain concerns as the city houses China’s technology and logistics industries.  Investors this week will keep an eye on new forecasts for rates, inflation and the economy given the uncertainty from the Russia-Ukraine war as the US Federal Reserve and the Bank of England are set to meet this week, where the US Federal Reserve is expected to increase interest rates by 0.25%. The Central Bank of Russia extended the suspension of stock trading at the Moscow Exchange until 18 March. Russia has promised to prop up the equity market with up to $10 billion when it re-opens.

Global Company:

The Hang Seng stocks is down 5%, led by technology firms JD.com and Tencent both falling 10%, on concerns over China’s crackdown on the sector as well as the country’s tech hub, Shenzhen that was put into lockdown. Volkswagen and BMW are looking to find alternative sources of vital parts made in Ukraine. Both carmakers had to cut output and temporarily closed some assembly lines, while Mercedes-Benz has warned its production will be affected soon. The US stock indices closed lower on Friday, the Dow closed 230 points down at 32 943, while the S&P 500 fell 55 points to 4204. The Dow and S&P 500 are now down 11% and 13%, respectively, from their record highs.

Commodities:

Gold is down 0.62% to $1 974/oz, while Platinum gained 0.5 % to $1 071/oz. Brent crude was 0.25% firmer at $110 a barrel.

Currencies:

The rand traded at R15.08 against the US Dollar, R19.61 against British Pound and R16.44 against the Euro. The Euro has weakened against the US Dollar slightly to trade at $1.09.

Brent Oil Futures
.
Gold Futures
Top 40 Futures

 

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1974,15 -0,62% USD/ZAR 15,08 Top40 67331,00 -0,36%
Platinum 1071,85 0,50% GBP/ZAR 19,61 Dow 30 32944,19 -0,70%
Brent 110,12 0,25% EUR/ZAR 16,44 S&P 500 4204,31 -1,31%
Copper 4,58 -1,22% EUR/USD 1,09 FTSE 7155,64 0,79%
Palladium 2692,50 -9,24% USD/JPY 117,79 DAX 13628,11 1,36%
Iron Ore 152,50 0,00% BITCOIN 38640,10 Shanghai 3243,27 -1,80%
Source:  Moneyweb & Investing.com