Daily Report 15 March 2022

SA Company News:

The JSE All Share Index fell over 1% to 72 856, dragged down by tech Naspers and its subsidiary Prosus, which owns a 29% stake in Tencent, following reports that the Chinese technology giant may face a potential fine for violations of some central bank regulations by its WeChat Pay mobile network. Naspers lost more than R100 billion in value yesterday on that report. In a trading update for the year to end-December, aluminium products manufacturer, Hulamin expects headline earnings of R574 million, from a restated loss of R219 million in the previous year, thanks to an increase in aluminium stock and other rolled sheet and plate products. However, the company warned that the recent spike in aluminium prices, which neared a record high, following the invasion of Ukraine, may hit its production volumes “should further increases occur”. Stadio reported that its revenue increased by 18% to R1.098 billion, while headline earnings increased from R117 million to R149 million, up 27% for the year to end-December 2021. Student numbers increased from 35 031 to 38 262. 

SA Economy:

The government is expected to announce today whether the national state of disaster will come to an end or continue. An expert from the Department of Global Health said that the country would need some preventive measures to curb the spread of Covid-19 for the foreseeable future. SA life insurers will be hiking premiums on policies for the unvaccinated people as they warn that death rates among those who have not received shots could remain elevated even as the pandemic eases.

Global Economy:

According to reports, India is considering taking up a Russian offer to buy its crude oil and other commodities at discounted prices with payment via a rupee-rouble transaction, two Indian officials said, amid tough Western sanctions on Russia over its invasion of Ukraine. India, which imports 80% of its oil needs, usually buys about 2% to 3% of its supplies from Russia. But with oil prices up 40% so far this year, the government is looking at increasing this if it can help reduce its rising energy bill. The officials, who both declined to be identified, did not say how much oil was on offer or what the discount was. Reports showed Russia has asked China for military and economic assistance for the war with Ukraine although Chinese officials denied it. The COVID-19 pandemic is threatening to disrupt global supply-chains as China has put major cities in the mainland under lockdown for seven days over a new outbreak of infections. China placed more than 51 million residents in Dongguan, Shangai and Shenzen under lockdown after a flare-up of more than 3 000 new daily Covid-19 cases driven by the Omicron variant.

Global Company:

Alibaba ADRs fell 4.5% and JD.com ADRs fell 5.3%, with these e-commerce companies hit by concerns that they could be delisted from the New York Stock Exchange for not meeting auditing requirements. The Dow erased a 450-point gain to close at 32 945, while the S&P 500 fell 0.7%. Apple, Intel and Nvidia all closed lower on fears of supply chain disruptions coming out of China. As a result, Hong Kong’s Hang Seng Index is down 3% in early trade today, with European stocks likely to open lower as well.

Commodities:

Gold weakened as traders braced for an upcoming rate hike from the Federal Reserve. Gold is down 2.34% to $1 928/oz, while Platinum fell 4.47% to $1 026/oz. Fears of a demand slowdown from China and ongoing ceasefire talks between Russia and Ukraine caused the price of Brent crude to slide. Brent crude fell 7.54% to $102.40 a barrel.

Currencies:

The rand traded at R15.13 against the US Dollar, R19.71 against British Pound and R16.59 against the Euro. The Euro is flat against the US Dollar to trade at $1.10.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1928,96 -2,34% USD/ZAR 15,13 Top40 65501,00 -2,79%
Platinum 1026,00 -4,47% GBP/ZAR 19,71 Dow 30 32945,24 0,00%
Brent 102,40 -7,54% EUR/ZAR 16,59 S&P 500 4173,11 -0,75%
Copper 4,50 -1,78% EUR/USD 1,10 FTSE 7193,47 0,53%
Palladium 2422,50 -11,15% USD/JPY 118,33 DAX 13929,11 2,16%
Iron Ore 139,50 -9,32% BITCOIN 38808,90 Shanghai 3105,66 -4,43%
Source:  Moneyweb & Investing.com