Daily Report 17 March 2022

SA Company News:
The JSE All Share Index gained 4% to close at 73 484 mainly supported by a rebound in heavyweights tech Naspers and Prosus.
In a trading update from Datatec, the company said the group achieved a very strong operational performance during FY22 as it continued to benefit from technology demand for networking, security, and cloud infrastructure with an increased software and services mix. Datatec says it expects $4.65 billion in revenue for the 2022 financial year. Full-year results will be published on 24th May. Bytes Technology Group plc, one of the UK’s leading software, security, and cloud services specialists,
provided the following update on trading for its financial year ended 28 February 2022. The group delivered gross profit growth of approximately 20% and adjusted operating profit growth of approximately 23%. Bytes expects to release its preliminary results for the financial year on 24 May 2022. Libstar results showed that headline earnings per share grew by 18.8% to 80.4 cents. The group’s revenue increased by 7% however, its gross profit margin declined from 24% to 23%, which Libstar attributed to lower export margins and the rising costs of raw materials and packaging due to the local and international supply chain challenges.

SA Economy:
Retail trade sales increased by 7.7% in January 2022, compared to the same month in 2021. It was the fifth straight month of increases in retail activity. South Africa’s Civil Aviation Authority (CAA) lifted its suspension of Comair’s operations, opening the way for Kulula.com and British Airways Comair to operate again.

Global Economy:
Russia-Ukraine talks continued yesterday with Ukraine’s President Zelensky saying Russia’s demands were becoming more realistic.US retail sales edged up 0.3% month-on-month in February 2022, easing from an upwardly revised 4.9% jump in January and below market forecasts of a 0.4% gain. The US Federal Reserve delivered a widely expected 25 basis point rate hike and is set to increase borrowing costs six more times this year.

Global Company:
Tech giants led the rebound yesterday, with sharp gains from Tencent up 23.2%, Alibaba up 27.3%, and JD.com gaining 35.6%.
The Shanghai Composite jumped 2.6% to 3 253 as Beijing’s push to stabilize financial markets prompted investors to get back into Chinese equities. Shares of property developers also gained with China Evergrande Group up 22% and Kaisa Group Holdings Ltd. rising 25%.US stocks closed higher after Fed Chair Jerome Powell assured investors the Fed hikes won’t derail the economic recovery. The Dow Jones Industrial Average rose 1.6% and the S&P 500 closed 2.2% higher.

Commodities:
Gold is up 0.89% to $1 935/oz, while Platinum gained 1.99 % to $1 022/oz. Brent crude is lower by 2.3% at $99.90 a barrel.

Currencies:
The rand traded at R14.91 against the US Dollar, R19.63 against British Pound and R16.46 against the Euro. The Euro is stable 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 1935,38 0,89% USD/ZAR 14,91 Top40 66972,00 4,00%
Platinum 1022,35 1,99% GBP/ZAR 19,63 Dow 30 34063,10 1,52%
Brent 99,90 -2,30% EUR/ZAR 16,46 S&P 500 4357,95 2,19%
Copper 4,61 1,27% EUR/USD 1,10 FTSE 7291,68 1,59%
Palladium 2446,02 -1,80% USD/JPY 118,79 DAX 14440,74 3,62%
Iron Ore 141,50 3,53% BITCOIN 41083,90 Shanghai 3223,85 1,66%
Source:  Moneyweb & Investing.com