Daily Report 19 August 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed flat at 71 011. Private schooling group, Curro has reported that group revenue rose 15.5% to R2.06bn to end-June and that profit grew 32% to R169m, boosted by pupil growth, higher fees and a once-off income subsidy of R25m from the provincial government. The headline earnings per share of Curro Holdings jumped by 41.8% to 27.5 cents. Curro’s shares were unchanged at R11.00. In a trading update for the six months to end-June, Grindrod said that it expects headline earnings per share to be as much as 68c, from 0.7c in the prior half year, due to its port and terminals division, where earnings more than doubled as volumes handled jumped. Port volumes increased 30% to 12.3-million tonnes in the review period while dry-bulk terminals volumes rose by 52%. Shareholders are advised that Grindrod will release its results for the current period on Friday, 26th of August 2022. Thungela Resources Ltd. said that it has reached an agreement to keep its long-term freight rail transport deal with Transnet SOC Ltd., and that bulk coal rail services and coal sales continued during the negotiations.

SA Economy:

The National Treasury said that they are increasing its spending on infrastructure by R200bn, raising the budget to R812 billion over the next three years to create jobs and boost productivity in the country. Treasury said that the government does have the budget for these projects, so money problem won’t be a problem.


Global Economy:

The annual inflation rate in the Euro Area hit a new record high of 8.9% in July 2022, compared to 8.6% in June and 2.2% a year earlier. Economic activity in China has been hit by persistent coronavirus outbreaks, a property crisis, and little room for monetary easing. The annual producer inflation in Germany rose to a record high of 37.2% in July 2022 from 32.7 a month earlier and above market forecasts of 32%. Energy prices was the biggest upward contributor to the inflation number. Retail sales in the UK rose 0.3% over the previous month in July 2022, recovering from declines in the last three months.

Global Company:

The FTSE 100 was higher by 0.35% to 7 541, as gains in energy shares offset losses in financials shares. Prosus said that they are going to buy the 33% stake it doesn’t own in Brazilian company, iFood from Just Eat Takeaway for 1.8bn euros. This deal will give Prosus sole control of iFood. The company is considered to be one of the most attractive food delivery businesses by making around 70 million deliveries per month. The Hang Seng Index is up 0.29% to 19 819. In China, the Shanghai Composite is lower by 0.19% to 3 271. At the close the S&P 500 was up 0.21%, at 4 283, while the Dow Jones Industrial Average was flat at 33 999. Estee Lauder Cosmetics Inc. fell 1.5% as it forecast full-year sales and profit below estimates, due to a hit from pandemic-related lockdowns in China.Tesla announced that they were cutting the delivery waiting period for Model 3 and Model Y cars in China. The waiting time for the rear-wheel drive Model Y sport utility vehicle is now four to eight weeks, while buyers of other versions of the SUV and Model 3 sedans need to wait for 12 to 20 weeks.


Gold is down 0.35% to $1 756/oz, while Platinum is lower by 0.85% to $910/oz. Brent crude is up 2.41% to $96 a barrel.


The rand traded at R16.91 against the US Dollar, R20.15 against British Pound and R17.05 against the Euro. The Euro is weaker against the US Dollar to trade at $1.0077.




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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1756.64 -0.35% USD/ZAR 16.91 Top40 64184.00 0.03%
Platinum 910.20 -0.85% GBP/ZAR 20.15 Dow 30 33999.04 0.06%
Brent 96.08 2.41% EUR/ZAR 17.05 S&P 500 4283.74 0.23%
Copper 3.63 1.53% EUR/USD 1.0077 FTSE 7541.85 0.35%
Palladium 2146.50 0.51% USD/JPY 136.29 DAX 13697.41 0.52%
Iron Ore 104.00 -1.44% BITCOIN 22769.30 Shanghai 3263.36 -0.39%
Source:  Moneyweb & Investing.com