Daily Report 12 April 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index was down 0.5% to 74 407. Momentum Metropolitan Holdings (MMH) has appointed Paul Baloyi as the chairman designate of its board. He will take over from Peter Cooper, who has been fulfilling these roles on an interim basis. Tharisa Minerals said mill breakdowns weighed on production in its second quarter. Platinum production fell 7.5% to 44 100oz, but the company remains optimistic about prices for both platinum and chrome, with demand supported by increased economic activity as well as sanctions against Russia. ln a trading update for the six months to end-March, Life Healthcare said its revenue increased by 3% to 5% from the same period in the previous year. The company said the lower margin was mostly due to the ending of Covid-19 contracts with the UK’s National Health Service, through its international subsidiary, Alliance Medical Group.

 

SA Economy:

Manufacturing production went up by 0.2% year-on-year in February of 2022. The performance was largely due to contractions in the motor vehicles, parts, and accessories category and the petroleum, chemical products, rubber, and plastic products. Nissan opened a new plant in Ghana last week, the plant will reassemble Nissan Navara bakkie kits manufactured in SA. This offers excellent export opportunities for SA, as exports of these kits to Nigeria and the Ivory Coast will soon follow.

 

Global Economy:

Investors now await US inflation data to be announced later today for clues on the Federal Reserve’s plans to hike interest rates and the start of the first-quarter earnings season. The annual inflation rate in Germany rose 7.3% in March 2022, accelerating from a 5.1% rise in the previous month, due to faster rises in prices of energy and food. The UK unemployment rate declined to 3.8% in the three months to February 2022 and in line with market expectations.

 

Global Company:

The Shanghai Composite rose 1.45% to 3 212 as investors continued monitoring the Covid situation in China. The Hang Seng Index was up 54 points to 21 262 after Shanghai started easing its lockdown measures in some areas. Shares of Tencent gained 4.6% to HKD 370.20 after China’s National Press and Publication Administration approved a batch of 45 games for generating revenue, the first such approval since July 2021. The approval indicates a slightly more favorable view from regulators towards the gaming industry after months of headwinds amid regulatory tightening in China across the technology sector.Concerns over higher interest rates have spurred investors to drop more risky assets, such as tech stocks led the losses in the US market. The Dow Jones Industrial Average lost 413 points to 34 308, the S&P 500 slipped 1.69% to 4 412 and the tech-heavy Nasdaq Composite dropped 2.18% to 13 411. Microsoft fell 5.2% and semiconductor stocks such as Nvidia and Advanced Micro Devices fell 5.2% and 3.6%, respectively.

 

Commodities:

Gold is up 0.68% to $1 957/oz, while Platinum is flat at $985/oz.Brent crude rose slightly to above $100 per barrel, recouping some losses after a sharp drop in the previous session, as investors weighed the potential for more sanctions on Russia.

 

 

Currencies:

The rand traded at R14.57 against the US Dollar, R18.98 against British Pound and R15.83 against the Euro.The Euro is slightly firmer against the US Dollar to trade at $1.09.

 

 

Brent Oil Futures
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Gold Futures
Top 40 Futures

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1957,63 0,68% USD/ZAR 14,57 Top40 67406,00 -0,51%
Platinum 985,00 -0,03% GBP/ZAR 18,98 Dow 30 34308,08 -1,20%
Brent 100,46 -0,53% EUR/ZAR 15,83 S&P 500 4412,53 -1,72%
Copper 4,66 -0,52% EUR/USD 1,09 FTSE 7618,31 -0,67%
Palladium 2443,52 -1,60% USD/JPY 125,67 DAX 14192,78 -0,64%
Iron Ore 145,00 -3,45% BITCOIN 40109,00 Shanghai 3203,16 1,12%
Source:  Moneyweb & Investing.com