Daily Market Overview 14 September 2021

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Local Market Update

– Shares on the Johannesburg-based stock exchange were lifted as the government eased local restrictions, and Wall Street, on which almost 80% of the local market is indirectly linked, stayed upbeat. The benchmark all-share index went up by more than half a percentage point to end the day at 64,652 points and the blue-chip index of top 40 companies closed up 0.55% to 58,495 points. The market was lifted by mining companies with the resources index up 1.77%. The local economy-linked stocks such as banking and financials added to the gain with the bank index closing up 1.18%.

– The rand gained on Monday, benefiting from an easing of local coronavirus lockdown restrictions. At the end of the session, the rand was trading around R14.14 to the dollar or 0.47% firmer. President Cyril Ramaphosa announced the loosening of restrictions in a televised address on Sunday, shortening a nationwide curfew and extending the hours of alcohol sales as new infections decline.

– Gold prices edged lower this morning as a stronger dollar crimped bullion’s appeal ahead of U.S. inflation data that could offer cues on the possible timeline for the Federal Reserve’s tapering. Oil prices extended gains earlier today, hovering near a six-week high, on signs another storm could affect output in Texas this week even as the U.S. industry struggles to return production after Hurricane Ida wreaked havoc on the Gulf Coast.

In Local news

REMGRO LIMITED – Updated trading statement for the year ended 30 June 2021
Shareholders are advised that Remgro’s headline earnings per share (“HEPS”) from continuing operations for the year ended 30 June 2021 is expected to be between 494.2 cents and 524.9 cents compared to the HEPS from continuing operations of 307.5 cents reported for the year ended 30 June 2020 (an increase of between 61% and 71%). The headline earnings from continuing operations for the comparative year ended 30 June 2020 were significantly impacted during the second six months to 30 June 2020 by the Covid-19 pandemic and the resultant lockdown measures as well as by a once-off donation of R500 million to The South African SME Relief Trust

ATTACQ LIMITED – Trading statement
Shareholders are referred to Attacq’s distributable income per share (“DIPS”) of 73.0 cents for the year ended 30 June 2020 (“prior financial year”), previously reported as 73.1 cents and subsequently updated in accordance with the SA REIT Association Best Practice Recommendation Second Edition adopted by Attacq for the year ended 30 June 2021 (“current financial year”), and its dividend per share (“DPS”) of 45.0 cents for the prior financial year. The DPS for the prior financial year comprised an interim dividend in respect of the period ended 31 December 2019 with no final dividend having been declared after due consideration by the board of directors of Attacq’s capital structure and liquidity.

International Market Update

– European stocks closed higher on Monday, with investors continuing to weigh up the European Central Bank’s latest policy decision and inflation data. The pan-European Stoxx 600 provisionally ended the session up 0.3% after the benchmark slumped 1.2% last week. Oil and gas stocks led the gains on Monday, adding 2.8%. European traders continued to digest the European Central Bank’s decision last week to slow down bond-buying under its pandemic emergency purchase programme (PEPP) in response to higher inflation and stronger GDP growth across the euro zone. The Dow Jones Industrial Average gained Monday as the index rebounded from a five-day losing streak.

– The Dow rose 261.91 points, or 0.8%, to 34,869.63. The S&P 500 closed up 0.2% at 4,468.73. The two major indexes both finished the day positive for the first time in the past six sessions. Inflation fears have contributed to the market’s recent losses.

– Shares in Asia-Pacific were mixed in early morning trade today as investors look ahead to the release of U.S. consumer inflation data for August. In Hong Kong, China Evergrande Group’s stock plunged more than 6% after the embattled property developer on Tuesday flagged expectations for a “significant continuing decline in contract sales in September,” with dampened confidence after negative media reports surrounding the firm.

In International news

Toast seeks $16 billion valuation at IPO
Toast is gearing up for an initial public offering next week that could value the restaurant-tech company at more than $16 billion. That’s about double its valuation from a secondary share sale last November. The company has taken a very uneven path to the New York Stock Exchange. Prior to the Covid-19 pandemic, Toast was thriving by selling technology to restaurants that helped them combine their payment systems with things like inventory management and multilocation controls for eateries with more than one site.

Taco Bell tests 30-day taco subscription to drive more frequent visits
The newest subscription service isn’t to stream TV shows or movies. It’s for Taco Bell’s tacos. Customers with the Taco Lover’s Pass can order one crunchy taco, soft taco, spicy potato soft taco or Doritos Locos taco per day for 30 days straight on the chain’s app. The cost of the pass ranges from $5 to $10 a month, depending on the location. The Yum Brands chain is testing the program across 17 locations in Tucson, Arizona.