Daily Report 13 April 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index fell 0.8% to 73 802. Capitec’s headline earnings per share increased by 84% to 7 300 cents per share in the year to end-February 2022, from 3 966 cents per share in the prior year. Earnings per share increased by 91% to 7 371 cents per share, from 3 850 cents per share in the prior year. A final gross dividend of 2 440 cents per ordinary share (2021: 1 600 cents) was declared. Capitec also declared a special dividend of 1 500 cents per ordinary share. The payment date is Monday, 9 May 2022. Members of the National Union of Mineworkers (NUM) and Association of Mineworkers and Construction Union (AMCU) have been on strike at Sibanye’s gold operations since March 9, demanding higher wages. Now workers at Sibanye Stillwater’s platinum operations plan to go on strike to show their support for gold miners. Sibanye has said it will not increase its final offer of a 5% increase for miners, artisans and officials and an annual increase of R800 a month each year for “unskilled and semi-skilled” employees between 2022 and 2024. MR Price Group Ltd. entered into a transaction agreement to acquire 70% of Blue Falcon Trading 188 (Proprietary) Limited, which owns the Studio 88 group of businesses. The Transaction will be fully funded through existing cash resources of the group.

SA Economy:

The South African Reserve Bank said in its biannual monetary policy review that the economic recovery was threatened by inflation and that it expects monetary policy to remain accommodative. The devasting floods that took place in KwaZulu-Natal has caused severe disruptions to roads and infrastructure in that province. The Durban port has been closed until further notice. Communication has also been affected, with Vodacom and MTN reporting that about 900 of their towers are down. This infrastructure damage comes less than 10 months after KZN and Gauteng experienced more than R50 billion economic fallout after businesses were looted and damaged during the riots in July 2021.

Global Economy:

The ZEW Indicator of Economic Sentiment for the Euro Area fell further to -43 in April of 2022, from -38.7 in the prior month, as the economic outlook is expected to worsen amid the adverse effects of the war in Ukraine.  The annual inflation rate in the US accelerated to 8.5% in March 2022, rising from 7.9% in the previous month and above market forecasts of 8.4%. The annual inflation rate in India increased to 6.95% in March 2022 and above market forecasts of 6.35%.  The annual inflation rate in the UK increased to 7% in March 2022 from 6.2% in February.  President Vladimir Putin said that Ukraine peace talks hit a dead end and the war will continue as planned.

Global Company:

The Shanghai Composite fell 0.4% to 3 202. The Covid situation continue to weigh on investor sentiment there. The Hang Seng Index dropped 49 points or 0.23% to 21 270. The Dow Jones fell 0.26% to 34 220, the S&P 500 lost 0.34% to 4 397 and the Nasdaq Composite declined 0.3% to 13 371, with financial stocks leading the market lower,.JP Morgan lost 1.1% ahead of its earnings results today. The FTSE 100 closed 0.6% lower at 7 577, in line with other European markets. Investors now await the European Central Bank meeting that takes place tomorrow.

Commodities:

Gold is up 0.6% to $1 969/oz, while Platinum is lower by 1.14% to $973.90/oz. The price of oil rose to $104.27 a barrel as progress in Russia-Ukraine peace talks came to a standstill and China started reopening Shanghai gradually.

Currencies:

The rand traded at R14.50 against the US Dollar, R18.86 against British Pound and R15.71 against the Euro. The Euro is slightly firmer against the US Dollar to trade at $1.08.

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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1969,49 0,60% USD/ZAR 14,50 Top40 66780,00 -0,94%
Platinum 973,90 -1,14% GBP/ZAR 18,86 Dow 30 34220,36 -0,26%
Brent 104,27 3,65% EUR/ZAR 15,71 S&P 500 4397,45 -0,34%
Copper 4,75 1,89% EUR/USD 1,08 FTSE 7576,66 -0,55%
Palladium 2402,00 -1,73% USD/JPY 125,57 DAX 14124,95 -0,48%
Iron Ore 148,00 2,03% BITCOIN 40122,00 Shanghai 3221,70 0,58%
Source:  Moneyweb & Investing.com