Daily Report 10 August 2021

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.07% higher at 70 266.In its results, for the six months ended 30 June 2022, Mpact said that its headline earnings per share grew by 31% to 142 cents. Revenue rose 5.9% to R4.9 billion in the interim period, while the revenue growth of its plastics business remained flat, with a 1.2% increase to R849 million. It declared an interim gross cash dividend of 40 cents per ordinary share. Its share price closed flat on Monday at R29.00.Datatec said that it had acquired UK consultancy and advisory firm, Q Associates. The company focuses on data management, data protection, compliance, and information security. Its clients are UK universities, the UK government and commercial clients. Datatec did not provide a figure for the acquisition.Nedbank reported that headline earnings rose 27% to R6.7bn in the six months to end-June, while its interim dividend jumped 81% to 783c per share. The bank said that net interest income climbed 9% to R17.2bn, strengthened by rising interest rates, while impairment charges rose 3% to R3.39bn, driven largely by a 4% increase in average gross loans.


SA Economy:

SA’s farmers said that they are are dealing with disputes with its key export markets in the EU and China, after citrus and wool exports have been hit by the imposition of phytosanitary restrictions. Citrus fruit worth nearly R654m are rotting in containers stuck in European ports after the EU introduced these requirements in July. The government is likely to come under increasing pressure to intervene on their behalf.


Global Economy:

The annual inflation rate in Germany came in at 7.5% in July 2022, slowing for the second straight month, from 7.6% in June.China’s annual inflation rate rose to 2.7% in July 2022 from 2.5% in June and compared with market forecasts of 2.9%.Investors are awaiting US inflation data for July which will be out later today, which is expected to provide more direction for markets. The interest rate market is now pricing in a high probability of a 75 basis-point interest-rate rise in September.


Global Company:

The FTSE100 closed flat at 7 488. The Hang Seng Index fell 2.4% to 19 522, with technology stocks dragging the index lower. Tech companies, Tencent Holdings Ltd, Alibaba Group Holding Ltd and Baidu Inc. fell between 1% and 3.3%.In China, the Shanghai Composite fell 0.74% to 3 223. The Dow Jones Industrial Average fell 0.18% to 33 248 while the S&P 500 was lower by 0.42% to 4 122.Walmart said that it is acquiring technology company, Volt Systems for an undisclosed amount. Volt Systems platform provides store-level data to help suppliers plan, forecast, and optimize product assortment.Nvidia shares fell more than 7% after the company said that it expects second-quarter revenue of about $6.70 billion, which is down 19% from the prior quarter. Nvidia said that the miss was primarily due to weakness in gaming. Tesla CEO, Elon Musk has sold $7.92 million worth of Tesla shares in case the Twitter deal goes ahead. Chipmaker, Micron Technology said that revenue may fall short of its prior guidance because of macroeconomic factors and supply chain constraints. Micron shares fell 3%.



Gold is up 0.83% to $1 789/oz, while Platinum is higher by 1.16% to $929/oz.Brent crude was down 0.15% at $95.62 a barrel.



The rand traded at R16.62 against the US Dollar, R20.06 against British Pound, and R16.96 against the Euro. The Euro is slightly firmer against the US Dollar to trade at $1.02.





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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1789.04 0.83% USD/ZAR 16.62 Top40 63771.00 1.03%
Platinum 929.10 1.16% GBP/ZAR 20.06 Dow 30 32774.41 -0.09%
Brent 95.62 -0.15% EUR/ZAR 16.96 S&P 500 4122.47 -0.55%
Copper 3.56 0.38% EUR/USD 1.0209 FTSE 7488.15 0.65%
Palladium 2205.00 3.85% USD/JPY 135.07 DAX 13534.97 -0.29%
Iron Ore 111.50 0.00% BITCOIN 22891.30 Shanghai 3229.41 -0.20%
Source:  Moneyweb & Investing.com