Daily Report 20 April 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index gained 0.6% to 77 830, as high commodity prices boosted mining stocks. In a trading update for the six months to end-March, fishing group, Oceana has warned that its headline earnings will fall by between 46% and 56%. This is due to weather-related fishing disruption as well as “significantly” lower levels of inventory carried into the period resulting from stock losses incurred during last year’s civil unrest in KwaZulu-Natal. ArcelorMittal South Africa (AMSA) is in the process of developing two 100 megawatt (MW) renewable energy plants, one in Gauteng and the other in the Western Cape. The group indicated that the initiative would assist the company in achieving its carbon intensity reduction targets. Altron has appointed Stewart van Graan as executive chair and acting CEO since the current CEO, Mteto Nyati is stepping down following a successful completion of his five-year term with the Altron Group, effective 30 June 2022. Shareholders are advised that Coronation’s total assets under management, as at 31 March 2022, is R625 billion.

SA Economy:

Public Enterprises Minister, Pravin Gordhan said the major port of Durban, where operations were disrupted by severe flooding last week, is now functional and a backlog of thousands of containers will be cleared within days. Power utility, Eskom warned that the country may have more than 100 days of electricity blackouts this year because of outages. Eskom’s move to stage 4 and the economic repercussions of the floods in KwaZulu-Natal weighed on the rand.

Global Economy:

The People’s Bank of China kept the benchmark rate for the 1-year loan prime rate unchanged at 3.7%, while also holding steady on the 5-year LPR at 4.6%. The International Monetary Fund said Russia’s gross domestic product is expected to contract 8.5% this year, with a further drop of 2.3% expected next year. The IMF also sees inflation for this year at 5.7% in advanced economies and 8.7% in emerging and developing countries. 

Global Company:

Reuters reported that Tesla may be forced to delay plans to begin reopening its Shanghai factory for a day due to logistic problems with its supplier as Shanghai tries to return to normal after a nearly three-week COVID-19 lockdown. Twitter shares fell 4.73% after a report by the Wall Street Journal said that Apollo Global Management was considering joining Tesla Chief Executive, Elon Musk’s bid to take the social-media company private. Netflix plummeted more than 25% in extended trading after reporting a loss of 200,000 subscribers in the first quarter. The Dow Jones Industrial Average rose 1.45% to 34 911 and the S&P 500 gained 1.61% to close at 4 462. The Hang Seng Index fell 0.2% to 20 987, among early losers were shares of Tencent down 0.22% to HKD 363.20.

Commodities:

Gold is down 1.81% to $1 940/oz, while Platinum is lower by 3.99% to $979.05/oz. Brent crude fell 4.25% to $107.55 a barrel.

Currencies:

The rand traded at R14.95 against the US Dollar, R19.48 against British Pound and R16.15 against the Euro. The Euro is flat against the US Dollar to trade at $1.08.

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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1940,73 -1,81% USD/ZAR 14,95 Top40 66867,00 0,58%
Platinum 979,05 -3,99% GBP/ZAR 19,48 Dow 30 34911,20 1,43%
Brent 107,55 -4,25% EUR/ZAR 16,15 S&P 500 4462,21 1,58%
Copper 4,68 -2,13% EUR/USD 1,08 FTSE 9601,28 20,67%
Palladium 2396,77 -0,78% USD/JPY 128,63 DAX 14153,46 -0,07%
Iron Ore 146,50 -2,73% BITCOIN 41404,00 Shanghai 3148,18 -1,03%
Source:  Moneyweb & Investing.com