Daily Report 23 March 2022

SA Company News:

The JSE All Share Index rose 1.2% to finish at 75 751. Attacq Limited reported a 34% increase in distributable income per share of 28.2 cents for the six months ended 31 December 2021. However, property expenses increased by 14.8% to R433.5 million, mainly driven by bad debt write-offs, provision for bad debts, and municipal charges. The board of directors has elected not to declare an interim dividend for the six months ended 31 December 2021. Attacq’s share price rose 1.35% to 744c. Thungela reported a strong set of results for the full year 2021 thanks to strong coal prices and declares a maiden dividend. The company reported a profit of R6.9 billion for the year ended in December 2021, compared with a loss of R362 million in 2020. The Board declared a cash dividend of R18.00 per share payable in May 2022. Merafe Resources reported an R1.67bn profit for the year to end-December, from a loss of R1bn previously. The Group revenue rose 69% to R8.06bn. Merafe said that the strong growth in stainless steel production, as well as developments in China, have been key to the buoyancy in the ferrochrome market in 2021. The company declared a dividend of 22c.

 

SA Economy:

Amid the Russia-Ukraine crisis, Agriculture, Land Reform and Rural Development Minister, Thoko Didiza said that after her meeting with food processors and leaders in the food and grain industry, there is sufficient food supplies for the country, and therefore there is no need to panic. President Cyril Ramaphosa has announced further easing to the level 1 lockdown restrictions, with masks no longer required outdoors and that venues could take up bigger numbers, provided patrons were vaccinated or if they could produce negative PCR tests.

 

Global Economy:

Now that the Fed has embarked on a hawkish stance, the market expects a 67.6% chance of a 50-basis point (bps) rate hike in the Fed’s policy meeting in May, 0.25% more than previously communicated. British inflation rose to a new high of 6.2% last month compared to forecasts of 5.9%. Russia and Ukraine failed to make progress on a ceasefire, with US President Joe Biden to announce further sanctions on Russia.

 

Global Company:

US stocks extended their gains, with the Dow up more than 250 points to 34 807 and the S&P 500 rising 1% to 4 511. Nike shares climbed 3% after the company reported profit and revenue that beat analysts’ expectations. The Hang Seng Index climbed 1.58% to a three-week high of 22 234. Technology stocks led the gains, with Tencent’s releasing its earnings after the close of trading today. European shares to open higher this morning with the UK’s Finance Minister, Rishi Sunak set to announce the highly anticipated budget speech later today.

 

Commodities:

Gold is down 0.95% to $1 918/oz, while Platinum is lower by 2.69% to $1 020/oz.Brent crude fell 2.21% to $116 a barrel.

 

Currencies:

The Rand strengthened to a five-month high, as expectations that the central bank will raise interest rates at its meeting tomorrow. The rand traded at R14.82 against the US Dollar, R19.67 against British Pound, and R16.35 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 1918,05 -0,95% USD/ZAR 14,82 Top40 69236,00 1,39%
Platinum 1020,70 -2,69% GBP/ZAR 19,67 Dow 30 34807,46 0,73%
Brent 116,09 -2,21% EUR/ZAR 16,35 S&P 500 4511,61 1,12%
Copper 4,69 0,19% EUR/USD 1,10 FTSE 7476,72 0,46%
Palladium 2547,77 -1,03% USD/JPY 121,07 DAX 14473,20 1,01%
Iron Ore 142,00 -2,11% BITCOIN 42153,00 Shanghai 3271,03 0,43%
Source:  Moneyweb & Investing.com