Daily Report 05 May 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.4% lower at 70 358 with Naspers and Clicks Group being the worst performers. Sanlam signed a joint venture deal with Allianz, a German multinational financial company, to create the largest non-banking financial services entity in Africa. The companies said that the entity will generate a combined total group equity value of over R33 billion. The combined entity will operate in 29 countries, excluding SA, and is expected to be ranked in the top three insurers in most of the markets where it will operate. Royal Bafokeng Platinum has appointed Rotshidzwa Manenzhe as interim CFO. This appointment follows the resignation of Hanré Rossouw who will join Sasol in July.

 

SA Economy:

Credit rating agency Moody’s forecast that inflation in South Africa is set to rise to 8% this year, overshooting the central bank’s target amid the global impact of the Russian – Ukraine conflict and rising U.S. interest rates. South Africa’s fresh produce exports have grown significantly in the past few years because of their variety, efficient production, and the ability to compete on the world market. However, the new export season is gathering steam this month, and problems at the main export port of Durban, following the floods, will need to be resolved quickly to avoid the country from losing an edge in a competitive world market. The Department of Health says that it is still compulsory to wear a mask in an enclosed indoor space, except for children in schools.

 

Global Economy:

The Reserve Bank of India unexpectedly raised its key repo rate by 40 basis points to 4.4% to help control rising inflation. The monetary-policy committee held an unscheduled meeting yesterday and unanimously decided to raise its policy repo rate. It is India’s first interest rate hike since 2018. The U.S. central bank raised interest rates by 50 basis points and is in line with market expectations. In addition, the central bank outlined a program in which it eventually will reduce its bond holdings by $95 billion a month.

 

Global Company:

The Hang Seng Index is up 0.62% at 21 000 with Alibaba Holdings rising 1.9% and Tencent up 0.38%.In China, the Shanghai Composite rose 2.4% to 3 193. The Dow Jones Industrial Average rose 2.81% to end at 34 061 points, while the S&P 500 gained 2.99% to 4 300. Uber shares fell 4.65% after the company announced huge write-downs of its investments in Asia as well as self-driving vehicles, pushing it to a $5.9 billion net loss in the first quarter. Starbucks reported that its U.S. same-store sales were up 12%, which beat Wall Street’s expectations of 9%. Revenue was $7.6 billion versus the $7.62 billion that was expected and adjusted earnings per share were 59 cents compared to 60 cents. Starbucks shares rose 9.8% to $81.64.European shares are poised for a strong open today on the back of the relief rally on Wall Street.

 

Commodities:

Gold is up 1.8% to $1 898/oz, while Platinum is higher by 3.1% to $987/oz. Brent crude was 4.04% firmer at $110 a barrel.

 

Currencies:

The rand traded at R15.53 against the US Dollar, R19.47 against British Pound, and R16.45 against the Euro. The Euro is slightly firmer against the US Dollar to trade at $1.06.

 

Brent Oil Futures
.
Gold Futures
Top 40 Futures

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1898,68 1,87% USD/ZAR 15,53 Top40 63574,00 -1,30%
Platinum 1001,00 3,10% GBP/ZAR 19,47 Dow 30 34061,06 2,74%
Brent 110,15 4,04% EUR/ZAR 16,45 S&P 500 4300,17 2,90%
Copper 4,39 2,13% EUR/USD 1,0599 FTSE 7493,45 -0,91%
Palladium 2280,78 0,98% USD/JPY 129,54 DAX 13970,82 -0,49%
Iron Ore 142,00 0,00% BITCOIN 39567,00 Shanghai 3068,38 0,69%
Source:  Moneyweb & Investing.com