Daily Report 15 July 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index was down 2.2% to 64 713.Pan African Resources said that the company’s gold production increased 1.8% to 205 459oz for the year to end-June 2022. The miner, with operations in Gauteng and Mpumalanga, said it expects to maintain its 2022 production levels in 2023. The company will release its annual results on September 14.Richemont reported a 12% increase in sales in the first quarter. Richemont said that higher sales in Europe, America, Japan and the Middle East offset lower sales in the Asia Pacific region during the three months to June, without giving an outlook for the rest of the year. The company also felt the shortfall in mainland China, where its sales were 37% lower for the quarter.


SA Economy:

Mining production in South Africa shrank by 7.8% year-on-year in May 2022, after a downwardly revised 14.8% slump in the previous month and compared with market forecasts of a 10.85% drop, pressured by load-shedding and a three-month strike in the gold sector.Business Unity South Africa (BUSA) warned that prolonged blackouts could result in ratings downgrades and a deeper decline in consumer and investor confidence. In anticipation of a pending announcement by President Cyril Ramaphosa about interventions to tackle SA’s energy crisis, BUSA urged the president to include in this plan clear direction and deadlines that reflect the seriousness and urgency of the situation.


Global Economy:

The European Commission (EC) said that Russia’s war against Ukraine continues to negatively affect the European economy, setting it on a path of lower growth and higher inflation. The EC lowered its growth forecasts for the Euro Area to 2.6% in 2022 and 1.4% in 2023. The United States Producer Price Inflation (PPI) jumped 1.1% month-over-month in June 2022, the most in three months and above market forecasts of 0.8%. Year on year, producer inflation accelerated to 11.3%. China’s GDP grew 0.4% year-on-year in the second quarter of 2022, missing the market consensus of 1.0% and slowing sharply from a 4.8% growth in the first quarter as lockdowns hit factories and consumer spending.


Global Company:

The FTSE 100 closed 1.6% lower at 7 039, as investors continue to worry about recession risks and higher inflation. The Hang Seng Index fell 1.85% to 20 374. Alibaba shares dropped 4% overnight after it was reported that the company’s executives were summoned by authorities investigating the theft of police data. In China, the Shanghai Composite fell 0.9% to 3 253. Shares in Chinese property developers fell as homebuyers threatened to stop mortgage payments for unfinished homes. The Dow Jones Industrial Average fell 0.46% to 30 630 while the S&P 500 was lower by 0.3% to 3 790.JPMorgan Chase & Co’s profit and revenue both disappointed expectations and the bank set aside more than $1 billion for possible credit losses. JPMorgan (JPM) released earnings per share of $2.76, compared to market expectations of $2.94. It also suspended buying back its own shares. Investment bank, Morgan Stanley posted $1.07bn in revenue, down 55% from a year earlier, a bigger decline than the 47% drop analysts had predicted. The bank also reported an additional $413m knocks driven by mark-to-market losses on corporate loans held for sale as credit spreads widened.



Gold is down 0.94% to $1 708/oz, while Platinum is higher by 0.29% to $844/oz.Brent crude was 0.17% firmer at $99.70 a barrel.



The rand traded at R17.19 against the US Dollar, R20.33 against British Pound, and R17.24 against the Euro. The Euro is slightly firmer against the US Dollar to trade at $1.0024.



Brent Oil Futures
Gold Futures
Top 40 Futures



Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1708,79 -0,94% USD/ZAR 17,19 Top40 58639,00 -2,38%
Platinum 844,94 0,29% GBP/ZAR 20,33 Dow 30 30630,17 -0,47%
Brent 99,70 0,17% EUR/ZAR 17,24 S&P 500 3790,38 -0,30%
Copper 3,17 -3,16% EUR/USD 1,0024 FTSE 7039,81 -1,66%
Palladium 1916,00 -2,06% USD/JPY 138,96 DAX 12519,33 -1,89%
Iron Ore 105,00 -3,33% BITCOIN 20626,00 Shanghai 3257,11 -0,59%
Source:  Moneyweb & Investing.com