Daily Report 3 March 2022

SA Company News:

The JSE All Share Index rose 0.55% to touch a fresh record high of 77 536, outperforming its global peers, supported by commodity shares amid worries of potential supply disruptions. Sasol was one of the top performers on the local market, rising 7.53% to R396.93. AECI posted an 8% increase in revenue to R26 billion for the year ended 31 December 2021. Headline earnings grew by 27% to R11.16 per share. A final cash dividend of 505 cents per share was declared. Murray & Roberts’ share price rose 6% following the release of its half-year results. Revenue from continuing operations rose to R13.3 billion, from R10.8 billion a year ago. Diluted headline earnings per share, from continuing operations, amounted to 29c, from a loss of 8c previously. No interim dividend was declared. Investment firm, Appian Capital Advisory has served Sibanye-Stillwater with a notice of claim seeking compensation for the miner’s termination of a planned acquisition of two mines in Brazil.

SA Economy:

South African Airways retrenches 225 workers as Takatso Consortium takes over the reins. The 225 workers are in addition to about 3 000 workers let go after SAA went into business rescue. SAA is under restructuring now involving the Takatso Consortium that would take a 51% stake in the airline when the sale and purchase process has been concluded subject to regulatory approval of bodies including the Competition Commission. Russia’s invasion of Ukraine is set to enter its eighth day and oil prices has surged past $110 a barrel. Together with a weaker Rand, money markets are pricing in the prospect of the Reserve Bank being forced to accelerate interest rate hikes. 

Global Economy:

Annual inflation rate in the Euro Area rose to a new high of 5.8% in February 2022 from 5.1% in January, above market expectations of 5.4%.  Guo Shuqing, chairman of the China Banking Regulatory Commission said that China is opposed to unilateral financial sanctions and won’t participate in such sanctions imposed by Western nations on Russia. Federal Reserve Chair, Jerome Powell affirmed that the central bank would take a measured approach to hiking rates despite geopolitical uncertainties. The Fed Chair ruled out a 50 basis-points hike in March but added that the central bank could take tougher action if inflation levels do not come down.

Global Company:

Global shares may continue to struggle as investors monitor the latest Russia-Ukraine headlines. Exxon Mobil Corp. said it is halting operations at a multibillion-dollar oil and gas project in Russia and will make no further investments in the country following its attack on Ukraine. The S&P 500 rose 1.9% to 4 386 while the Dow Jones Industrial Average gained 1.8% to 33 891. Shares of technology companies rose as traders rotated into high-risk sectors, relieved by Federal Reserve Chairman Jerome Powell’s comments.

Commodities:

Gold is down 0.41% to $1 927/oz, while Platinum gained 2.72 % to $1 084/oz. The U.S. and other major oil-consuming nations said they would release 60 million barrels of oil from their emergency stockpiles. Brent crude is 6.5% firmer at $117 a barrel.

Currencies:

The rand traded at R15.32 against the US Dollar, R20.54 against British Pound and R17.01 against the Euro. The Euro remained under pressure against the US dollar on worries that the Russia-Ukraine conflict will hold back European growth. The Euro has weakened against the US Dollar slightly to trade at $1.11.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1927,91 -0,41% USD/ZAR 15,32 Top40 71058,00 0,67%
Platinum 1084,00 2,72% GBP/ZAR 20,54 Dow 30 33891,35 1,76%
Brent 117,02 6,51% EUR/ZAR 17,01 S&P 500 4386,54 1,83%
Copper 4,76 4,37% EUR/USD 1,11 FTSE 7429,56 1,34%
Palladium 2687,88 2,47% USD/JPY 115,71 DAX 14000,11 0,68%
Iron Ore 144,50 2,08% BITCOIN 43472,20 Shanghai 3481,11 0,01%
Source:  Moneyweb & Investing.com