Daily Report 02 August 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index was down 0.42% to the 68 642 level. In a trading update from Thungela Resources, the company said that headline earnings per share are expected to be between R66.85 and R67.45 when compared to R3.13 for the six months ended 30 June 2021. Thungela said the earnings increased because of a strong benchmark price for thermal coal and higher realized prices achieved in the first half of 2022, although this was somewhat offset by increased operating costs. The company expects to release its interim financial results for the six months ended 30 June 2022 on the 15th of August 2022. Royal Bafokeng Platinum (RBPlats) reported a 58.1% decline in half-year profit on lower metal prices and higher mining costs. RBPlat’s headline earnings per share, fell to R7.67 in the six months to June 30, from R18.32 previously. Liberty Two Degrees (L2D) reported that its net property income rose 8.43% to R261m in the six months to end-June. The company said that it expects stronger leasing performance going forward as the trading performance of retailers improves. L2D opted for a 100% payout ratio, upping its interim dividend by 10.7% to 17.48c per share.


SA Economy:

The South African manufacturing activity contracted for the first time in a year. The seasonally adjusted ABSA Purchasing Managers’ Index (PMI) fell to 47.6 points in July from 52.2 in June, falling below the 50-point mark that separates expansion from contraction for the first time since July 2021. ABSA said electricity supply disruptions were the likely cause of the drop in production. Finance Minister Enoch Godongwana said that the South African government will take on some of state power utility Eskom’s debt, but there is no consensus over how much. Eskom has around R400 billion of debt it cannot afford to service without government bailouts. The National Union of Metalworkers of South Africa (NUMSA) is talking about strike action in the motor industry if negotiations fail. The union is demanding a wage increase of 20% across the board.


Global Economy:

Hong Kong’s economy shrank by 1.4% year-on-year in the second quarter of 2022, while analysts expected it to rebound by 0.6%. The decline in GDP was mainly attributable to the weak performance in external trade during the quarter, with exports of goods declining further. The S&P Global Eurozone Manufacturing PMI contracted to 49.8 in July 2022 from 52.1 in June, pointing to the slowest growth in factory activity since June of 2020, but slightly above preliminary estimates of 49.6. The S&P Global ME Germany Manufacturing PMI for Germany was revised slightly higher to 49.3 in July 2022 from a preliminary of 49.2. The S&P Global U.S. Manufacturing PMI was revised lower to 52.2 in July 2022 from a preliminary of 52.3, pointing to the lowest factory growth since July 2020.


Global Company:

The FTSE100 closed 0.13% lower to 7 413. HSBC shares gained more than 6% after saying it plans to resume its quarterly dividend next year and that their profit fell less than market expectations.The Hang Seng Index fell 2.64% to 19 634, as geopolitical tensions rose over U.S. House Speaker, Nancy Pelosi’s visit to Taiwan, early losers were Tencent which was lower by 3.2% and Alibaba down 3.3%.In China, the Shanghai Composite is down 2.27% to 3 186. The Dow Jones Industrial Average closed 0.14% lower to 32 798 while the S&P 500 was down 0.28% to 4 118, led lower by energy shares as the price of oil fell.



Gold is up 0.65% to $1 772/oz, while Platinum is higher by 0.92% to $900.95/oz.Brent crude was 4.05% lower at $99.04 a barrel.



The rand traded at R16.55 against the US Dollar, R20.23 against British Pound, and R16.99 against the Euro. The Euro is slightly firmer against the US Dollar to trade at $1.0257.




Brent Oil Futures
Gold Futures
Top 40 Futures


Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1772,15 0,65% USD/ZAR 16,55 Top40 62115,00 -0,58%
Platinum 900,95 0,92% GBP/ZAR 20,23 Dow 30 32798,40 -0,14%
Brent 99,04 -4,05% EUR/ZAR 16,99 S&P 500 4118,63 -0,28%
Copper 3,52 -1,30% EUR/USD 1,0257 FTSE 7413,42 -0,14%
Palladium 2171,50 3,26% USD/JPY 130,96 DAX 13479,63 -0,03%
Iron Ore 119,00 1,26% BITCOIN 22902,40 Shanghai 3211,49 -1,40%
Source:  Moneyweb & Investing.com