Daily Report 06 April 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index gained 0.4% to 76 220. MTN Group Ltd. is working with advisers at JPMorgan Chase & Co. on the planned separation of its financial technology business. The company is studying a variety of potential deals, including bringing in partners for some of its businesses as well as possibly listing certain units in the future, to unlock value and pay down debt. Caxton said that it is buying two businesses from the Swiss-headquartered packaging company Amcor in a deal worth R90 million. The businesses include the Amcor Cape Town bag-in-box pouching operations, which manufacturers bag-in-a-box bladders for boxed wine and Amcor Port Elizabeth, which produces products for the automotive tyre industry.

SA Economy:

The S&P Global South Africa Purchasing Managers’ Index (PMI) rose to 51.4 in March from 50.9 in February, posting its highest reading in four months. A reading above 50.0 indicates growth in the sector. Farmers said they will not receive the full R1.50/l reduction in the general fuel levy, announced by the Treasury and the department of mineral resources & energy last week, and that this will have implications for consumers, who can expect the effect of higher fuel prices to lead to more rapid food price inflation in the months ahead.

Global Economy:

The Eurozone final Services Purchasing Managers’ Index (PMI) index posted at 55.6 in March, up from 55.5 in February. The World Bank cut its economic growth forecast for China this year to 5% from its previous forecast for a 5.4% expansion, citing economic risks from the Ukraine war, the US monetary tightening and the resurgence of COVID-19 cases. Investors will be focusing on the release of the minutes of the Federal Reserve’s March meeting later today as expectations are growing that the Fed will act more aggressively at its meeting in May. Europe is considering banning Russian coal imports as part of a new round of sanctions. Germany is the largest importer of Russian coal in Europe.

Global Company:

Germany’s DAX was down 0.6% to 14 448 while the FTSE 100 Index in London closed 0.3%. higher to 7 582. The Shanghai Composite Index, that started trading after a two-day holiday, fell 0.34% to 3 271 as Chinese authorities extended the lockdown in Shanghai. The Hang Seng Index is down 1.69% to 22 121 with high-growth technology and energy stocks leading the declines. Tencent is trading 1.54% lower at HKD 384.00 while shares of Alibaba sank 4.3%. The Dow closed 280 points lower at 34 641 and the S&P 500 dropped 57 points to 4 525. Technology shares were the most hit with Nvidia down 3% and Amazon falling 2.55%.

Commodities:

Gold is down 0.62% to $1 919/oz, while Platinum is lower by 2.11% to $969.50/oz. Brent crude fell 2.28% to $106.66 a barrel.

Currencies:

The rand traded at R14.73 against the US Dollar, R19.24 against British Pound and R16.02 against the Euro. The Euro is slightly weaker against the US Dollar to trade at $1.09.

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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1919,23 -0,62% USD/ZAR 14,73 Top40 68344,00 -0,87%
Platinum 969,50 -2,11% GBP/ZAR 19,24 Dow 30 34641,18 -0,81%
Brent 106,66 -2,28% EUR/ZAR 16,02 S&P 500 4525,12 -1,27%
Copper 4,75 -1,82% EUR/USD 1,09 FTSE 7613,72 0,72%
Palladium 2250,50 -2,46% USD/JPY 123,99 DAX 14424,36 -0,65%
Iron Ore 154,00 0,00% BITCOIN 45389,00 Shanghai 3269,71 -0,40%
Source:  Moneyweb & Investing.com