Daily Report 9 March 2022

SA Company News:

The JSE All Share Index fell 1.3% to 72 360, extending losses for a fourth straight session, led by financial shares. Shoprite released its results for the six months to 2 January 2022 where the company saw strong half-year growth in profit and sales. Shoprite said headline earnings per share, from continuing operations rose to 522.6 cents in the six months ended 2 January, from 416.5 cents in the six-months ended 27 December 2020. The company declared an interim dividend of 233 cents, up 22%. AVI reported a 6.9% increase in half-year profit for the six months ended 31 December 2021 with headline earnings per share at 316.9 cents, up 6.6% from the previous period. The group saw a 2.3% increase in revenue to R7.3 billion and declared an interim dividend of 170 cents per share, a 6.3% surge compared with the previous year. The National Union of Mineworkers (NUM) and the Association of Mineworkers and Construction Union (Amcu) served Sibanye with a 48-hour strike notice. Both unions declined the final wage offer from Sibanye. The strike will start today, and all workers of Sibanye-Stillwater gold operations will be affected.

SA Economy:

Gross domestic product grew 1.2% in the last quarter, as the economy recovered from a contraction in the previous quarter caused by civil unrest in the country in July 2021 and stricter coronavirus lockdown regulations. Statistics South Africa said the annual growth rate for 2021 was 4.9%, compared to a year earlier, where the economy grew 1.7%. Eskom has escalated loadshedding from stage 2 to stage 4 today. This comes after further failures of its generating units overnight. 

Global Economy:

The Ukraine – Russia conflict and the associated Western sanctions on Russia, have prompted concerns about supply shocks, sending commodity prices soaring to record highs. These inflationary pressures are now raising concerns that the Federal Reserve will have to hike interest rates more aggressively than the market has already factored in. The U.S. central bank meets next week. The US trade deficit widened to a record high of $89.7 billion in January, as soaring energy costs pushed imports to a record high. President Joe Biden announced the ban on Russian oil and other energy imports while Britain said it would phase out imports of Russian oil by the end of 2022. China’s annual inflation rate remained at 0.9% in February 2022, unchanged from the previous month.

Global Company:

The FTSE 100 edged up on Tuesday, after falling to an over 5-month low in the previous session helped by a rebound in financial shares. The Shanghai Composite fell 1.13% due to a variety of factors including fears of sanctions against Chinese firms with Russian ties and rising coronavirus cases. The Dow Jones closed 185 points lower at 32 632, while the S&P 500 and the Nasdaq fell 0.7% and 0.3%, respectively. The high oil price lifted energy shares there. American brands McDonald’s, Starbucks, PepsiCo and Coca-Cola have all announced that they are temporarily stopping business in Russia as a response to Russia’s invasion of Ukraine.

Commodities:

Gold is up 2.57% to $2 049/oz, while Platinum gained 3.74% to $1 184/oz. Brent crude was 2.17% firmer at $130.55 a barrel.

Currencies:

The rand traded at R15.24 against the US Dollar, R20.00 against British Pound and R16.65 against the Euro. The Euro is flat against the US Dollar to trade at $1.09.

Brent Oil Futures
.
Gold Futures
Top 40 Futures

 

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 2049,33 2,57% USD/ZAR 15,24 Top40 66302,00 -1,27%
Platinum 1184,35 3,74% GBP/ZAR 20,00 Dow 30 32632,64 -0,57%
Brent 130,55 2,17% EUR/ZAR 16,65 S&P 500 4170,62 -0,73%
Copper 4,72 -4,28% EUR/USD 1,09 FTSE 6964,11 0,07%
Palladium 3198,50 4,24% USD/JPY 115,72 DAX 12831,51 -0,02%
Iron Ore 156,50 -1,60% BITCOIN 41454,30 Shanghai 3222,07 -2,98%
Source:  Moneyweb & Investing.com