During the past week the markets were very volatile in both an upwards and downwards trajectory, but these were our take-aways and highlights of the movements. We also note trends in the global and local economies to give you a snapshot of the current circumstances in these areas.
SA Company News
- Mediclinic was up more than 11% on the back of stellar results.
- Coca-Cola reportedly seeks R120bn value in a JSE listing in 2022.
- Sasol had its credit rating reaffirmed by the ratings agency S&P Global to BB on strong cash flows and debt reduction. Sasol Ltd posted a 44% rise in first-quarter revenue in its main chemicals business on higher chemical and crude oil prices.
- Cashbuild reported a fall of 13% in revenue as 36 of its stores were looted in July, with 32 of the outlets remaining closed.
- Clicks headline earnings rose 1.3% to R1.9 billion and declared a final dividend of R3.47/share which means the total dividend for the year is R4.90/share.
- The JSE All Share index ended at 67051 on Friday, 22 October 2021.
SA Economy
- Consumer price inflation index rose to 5% in September 2021 due to sharp increases in the cost of transport, food, and housing, slightly up from 4.9% in August 2021, setting up for an interest-rate increase in the coming months.
- Motorists need to brace themselves for a massive fuel price hike in November. The increases would push the inland price of 95 ULP above R19 a litre and R17 a litre for diesel.
- South African Property Owners Association (SAPOA) reported the office vacancy rate has reached a new all-time high of 15.4%.
- Revenue in the tourism sector is still 60% lower than normal even though tourism and business travel continue to recover.
Global Economy
- Mounting inflation, supply-chain problems and the energy crunch still pose a risk for global growth.
- In China, the world’s largest economy, the housing market slowed substantially last month as demand from home buyers declined and the country’s debt-saddled developers cut spending.
- UK: British inflation slowed unexpectedly last month. The consumer price inflation rate in the UK slowed to 3.1% in September and retail sales dropped by 0.2% September adding to signs of weakness in the recovery from COVID-19.
- Europe: The Eurozone annual inflation rate came in at 3.4%, well above the European Central Bank’s target of 2.0%.
- Investors continue to worry over whether the recent spike in inflation is more long-lasting and what it means for monetary policy both in the UK and US.
Cryptocurrencies
- Bitcoin this week briefly rallied to $64 475, less than $400 off its all-time high as the Bitcoin Strategy ETF started trading on the New York Stock Exchange.
Commodities
- The price of Brent crude ended the week 0.8 % higher at $85.53.
- Gold futures were higher at $1791, helped by a slightly softer dollar.
- Nickel, which is used mainly to make stainless steel, surged past $21,000 a ton due to a global shortage.
Currencies
- The rand had firmed 1.5 % to R 14.82/$ for the week ended 22 October 2021.
- The U.S. dollar weakened 0.3% against the Euro at EUR/USD 1.164.
Read also:
