Daily Report 25 April 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.5% lower at 72 265, where miners, retailers, and financials dragged the index down. Kumba Iron-ore was down another 7% to R 537.50 and Anglo American fell 3% to R 718.39. Anheuser-Busch InBev will sell its non-controlling interest in its Russian AB InBev Efes venture, as the beer maker joins the global movement to exit operations in the country following its invasion of a neighboring country, Ukraine. Sasol Ltd. is expecting liquid fuel sales volumes for the year to be between 52 million and 54 million barrels, compared with their previous guidance of 51 million to 53 million barrels. Chemicals sales volumes for the year ended June 30 are also expected to be 4% to 8% lower than fiscal 2021, as previously guided.
Sibanye-Stillwater has increased its wage offer for striking South African gold mineworkers where entry-level employees would be given an annual increase of R850 a month each year between 2022 and 2024, including an R50 increase in living out allowance. Sibanye previously offered entry-level workers an annual increase of R800 a month, including an R100 a month increase in living out allowance.

SA Economy:

The Citrus Growers Association of Southern Africa (CGA) welcomed the progress made to return Durban port to full functionality ahead of the 2022 citrus export season, after the KwaZulu-Natal floods. The Bureau for Economic Research (BER) said that the power outages last week will likely shock the country’s Q2 GDP growth. Eskom anticipates between 37 to 101 days of load-shedding and if Eskom can limit unplanned breakdowns to below 12 500MW, it could avoid load-shedding.

Global Economy:

Fed Chair, Jerome Powell said a half-point interest rate hike will be “on the table” when the Fed meets on the 3rd of May in a bid to tame inflation which is currently running at 40-year highs. France’s Emmanuel Macron secured a second term as president on his pro-business and pro-EU agenda. Beijing reported a spike in Covid cases over the weekend and warned that more would be found since the virus had spread undetected in the city for a week.

Global Company:

The FTSE 100 was down 0.3%, hampered by miners and financial companies, due to investors’ concern over a more aggressive monetary policy stance from central banks. The Hang Seng fell 2.31% to 20 161. On mainland China, the Shanghai Composite fell 2.4% to 3 012 on fears that a Covid outbreak may prompt Beijing to introduce new lockdowns measures. The Dow Jones fell 2.82% to 33 811 while the S&P 500 dropped 2.77% to 4 272. Investors will be watching out for the big tech firms such as Amazon, Apple, Alphabet, Meta Platforms, and Microsoft to report earnings this week.

Commodities:

Gold is down 1.92% to $1 915/oz, while Platinum is lower by 4.58% to $928/oz. Brent crude was 4.2% lower at $102.68 a barrel.

Currencies:

The rand traded at R15.72 against the US Dollar, R20.09 against British Pound, and R16.91 against the Euro. The Euro is weaker against the US Dollar to trade at $1.07.

 

Brent Oil Futures
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Gold Futures
Top 40 Futures

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1915,62 -1,92% USD/ZAR 15,71 Top40 65385,00 -1,58%
Platinum 928,00 -4,58% GBP/ZAR 20,09 Dow 30 33811,40 -2,90%
Brent 102,68 -4,20% EUR/ZAR 16,91 S&P 500 4271,78 -2,85%
Copper 4,51 -4,08% EUR/USD 1,07 FTSE 7521,68 -1,41%
Palladium 2293,77 -5,67% USD/JPY 128,40 DAX 14142,09 -2,55%
Iron Ore 145,50 -0,69% BITCOIN 39027,00 Shanghai 2961,06 -4,63%
Source:  Moneyweb & Investing.com