Daily Report 13 May 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index was down 1.7% to 67 251 points after U.S. data showed that inflation fell slightly, but remained elevated. Sappi released second-quarter results for the period ended March 2022, which showed that its debt had decreased from $2 billion in the second quarter of 2021, to $1.7 billion in 2022. CEO Steve Binnie said that there will be no material impact on EBITDA for the year. However, after external insurance proceeds, the estimated net loss of approximately US$28 million will be reflected as a special item expense in the third quarter. Vodacom announced the launch of a new unsecured loan service called VodaLend Compare. This service will allow customers to compare personal loan quotes in simple steps and will enable them to apply for the best option to suit their lifestyle and budget needs. VodaLend will offer unsecured loans ranging from R500 to R350 000.ArcelorMittal’s share price fell 5.97% as the strike action entered a second day after wage negotiations broke down.

 

SA Economy:

Mining production fell 9.3% year on year in March 2022. Lower output levels came from Gold falling 25.6%, Iron ore down 24.4%, and Copper down 39%. South Africa’s budget deficit for the 2022 fiscal year came in narrower than the government’s estimate as a result of better-than-expected revenue collection and spending. The budget deficit narrowed to 5.2% of GDP compared to 5.5% seen in February. Revenue was lifted by higher corporate income, largely to a rally in commodities and VAT.

 

Global Economy:

Federal Reserve Bank of St. Louis leader, James Bullard said that the outlook for a half-percentage-point increase at the next couple of central-bank policy meetings is still in place and continues to doubt whether or not more aggressive action is needed at this point. Mr. Bullard reiterated that he still wants to see the funds rate, now at a range of between 0.75% and 1%, at around 3.5% by year-end.

 

Global Company:

The FTSE 100 pulled back more than 2%, weighed down by persistent inflation fears. The Hang Seng Index is up 2.23% to 19 810, with Tencent up 3% and Alibaba Holdings rising 2.2%In China, the Shanghai Composite is unchanged at 3 202. The Dow Jones Industrial Average fell 0.33% to end at 31 730 points, while the S&P 500 was lower by 0.13% to 3 930. Twitter shares fell 2.4% after it was reported that the SEC is investigating Elon Musk’s delayed disclosure after buying 5% of Twitter’s stock.

 

Commodities:

Gold is down 1.32% to $1 824/oz, while Platinum is lower by 3.83% to $954/oz. Brent crude was 1.79% firmer at $108 a barrel.

 

Currencies:

The rand traded at R16.03 against the US Dollar, R19.55 against British Pound, and R16.64 against the Euro. The Euro is slightly weaker against the US Dollar to trade at $1.04.

 

Brent Oil Futures
.
Gold Futures
Top 40 Futures
Market Indicators
Commodities $ Cross Currencies ($) Major Indices
Gold 1824,01 -1,32% USD/ZAR 16,03 Top40 60641,00 -1,89%
Platinum 954,89 -3,83% GBP/ZAR 19,55 Dow 30 31730,30 -0,33%
Brent 108,33 1,79% EUR/ZAR 16,64 S&P 500 3930,08 -0,13%
Copper 4,13 -0,38% EUR/USD 1,0405 FTSE 7288,14 -0,82%
Palladium 1963,14 -3,40% USD/JPY 128,65 DAX 13815,89 -0,09%
Iron Ore 123,00 -3,25% BITCOIN 30346,80 Shanghai 3084,28 1,06%
Source:  Moneyweb & Investing.com