SA Company News:
The Johannesburg Stock Exchange All-Share Index was down 0.74% to the 69 744 level. Aspen Pharmacare said that they will stop making COVID-19 vaccines from the end of this month due to a lack of orders. Aspen currently produces vaccines for Johnson & Johnson. London-based Quilter reported that net inflows fell 30% year on year to £1.4bn (R28bn) in its half-year to end-June, while assets under management and administration fell 12%, as investors struggled with volatility stemming from Russia’s invasion of Ukraine. Logistics company, OneLogix Group said that it has become increasingly difficult to operate a logistics company in South Africa. The group’s shares are currently trading under a cautionary notice that warns of its possible delisting, following a transaction that has not yet materialized. In a trading update, the company said that headline earnings per share were expected to decrease by between 55% and 75% for the year that ended 31 May. The company’s audited results for the current year are expected to be released on the 25th of August. Jubilee Metals Group PLC reported that its profits increased in the second half of its fiscal year which ended 30 June. Jubilee announced a 5% increase in production of 21 140 PGM ounces, while in Zambia, copper production increased 14% to 1 388 tons.
SA Economy:
The SACCI Business Confidence Index rose to 110.3 in July 2022 from 108.5 in the previous month. It was the highest reading since March, helped by an increase in trade volumes and new vehicle sales. However, the volatile rand exchange rate and higher interest rates continued to weigh on the local business environment. The Automobile Manufacturers Employers Organisation has offered NUMSA proposed increases of 6.2% in the first year, 5.6% in year two and 4.7% in the final year. Both parties will meet again later this month to continue with the negotiations. Financial experts are saying that South Africa is likely to be added to a global money laundering and terrorist funding ‘greylist’, which could see billions of rands of investment flow out of the country’s economy. The country has until the end of August to make submissions to the Financial Action Task Force to avoid the listing. The Industrial Gas Users Association of Southern Africa (IGUA-SA) said that it was concerned about the 96% gas price hike announced last week by Sasol Gas. The increase will take the price of piped gas to R133 per gigajoule. Responding to Sasol’s 96% gas price increase, NERSA released a statement saying it had not approved such increases and that it would investigate any possible unreasonable or excessive pricing.
Global Economy:
The annual inflation rate in the US slowed more than expected to 8.5% in July 2022 from 9.1% in June and below market forecasts of 8.7%. Core inflation was steady at 5.9%. The Fed has said that it will need to see several months of declines in CPI before it will put on the brakes on increasing interest rates. Reuters reported that Indian companies are using Asian currencies such as the Chinese Yuan to pay for Russian coal imports, according to customs documents and industry sources, avoiding the U.S. dollar and cutting the risk of breaching Western sanctions against Moscow.
Global Company:
The FTSE 100 closed 0.25% higher at 7 507, driven mainly by gains in consumer discretionary and real estate stocks. The Hang Seng Index is up 1.65% to 19 933. Led by gains in the tech sector which could benefit from the prospect of less aggressive interest rate hikes in the US. SoftBank Group said it would reduce its stake in Chinese tech company Alibaba. The sale would add 4.6 trillion Yen ($34.6 billion) to its pre-tax gains. In China, the Shanghai Composite is higher by 1.23% to 3 269. The Dow Jones Industrial Average rose by 1.45% to 33 309 while the S&P 500 climbed 1.7% to 4 210. Coinbase reported a $1.1 billion net loss in the second quarter, amid a sharp downturn in the crypto markets. Foxconn reported results that beat market expectations but were cautious on the outlook. Foxconn shares rose 2.27% as a result of the news.
Commodities:
Gold is down 0.14% to $1 786/oz, while Platinum is higher by 1.94% to $947.45/oz. Brent crude was 1.99% firmer at $97.56 a barrel.
Currencies:
The rand traded at R16.21 against the US Dollar, R19.78 against British Pound, and R16.69 against the Euro. The Euro is slightly firmer against the US Dollar to trade at $1.03.
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Market Indicators |
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| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 1786.58 | -0.14% | USD/ZAR | 16.21 | Top40 | 63161.00 | -0.97% |
| Platinum | 947.45 | 1.94% | GBP/ZAR | 19.78 | Dow 30 | 33309.51 | 1.61% |
| Brent | 97.56 | 1.99% | EUR/ZAR | 16.69 | S&P 500 | 4210.24 | 2.08% |
| Copper | 3.68 | 3.16% | EUR/USD | 1.0301 | FTSE | 7507.11 | 0.25% |
| Palladium | 2237.00 | 1.43% | USD/JPY | 132.76 | DAX | 13700.93 | 1.21% |
| Iron Ore | 111.50 | 0.00% | BITCOIN | 24567.70 | Shanghai | 3280.15 | 1.55% |
| Source: Moneyweb & Investing.com | |||||||