Daily Market Overview 20 September 2021

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Local Market Update

– Shares listed on the Johannesburg Stock Exchange continued their steady decline on Friday as
investors worried that the boom in the commodity cycle was nearing an end which could hit South
Africa’s foreign currency earnings. The slide was further worsened by a fall in Wall Street shares
driven by decline in technology stocks and fears of a rise in corporate taxes in the United States.
The benchmark all-share index closed down 0.71% to 62,862 points, ending the day with a weekly
drop of 2.2%, its third consecutive week of decline, which has brought the broader index down to
its early February level. The blue-chip index of top 40 companies slipped by 0.86% to 56,605 points.

– The rand weakened on Friday, reversing some early gains and was set to close the week with an
overall loss of almost 3.8% as the U.S. dollar rose and weak domestic economic data weighed on
sentiment. At the close of Friday’s session, the rand was trading around R14.75 to the dollar or
1.01% weaker.

– Gold prices inched lower this morning, pressured by a firmer dollar, while investors awaited
guidance from the U.S. Federal Reserve on when it is likely to start withdrawing its bond-buying
program. Oil prices fell today, extending losses from Friday after the U.S. dollar jumped to a three-week high and the U.S. rig count rose, although nearly a quarter of U.S. Gulf of Mexico output
remained offline in the wake of two hurricanes.

In Local news

Pepkor says vaccines key to job boost in South Africa
South Africa’s largest clothing retailer sees a successful Covid-19 vaccination rollout as key to
reopening the economy and adding new stores, helping to address the world’s highest
unemployment rate. “If we get people vaccinated, the economy can normalise quickly,” Pepkor CEO
Leon Lourens said in an interview. “If the economy normalises, we can create jobs.” The
government temporarily imposed strict restrictions to curb the spread of the coronavirus from
March 2020, but subsequent waves of infections have forced some measures to remain in place

Mondi Group – 2021 Interim Dividend euro/sterling Exchange Rate
Mondi plc announced on 5 August 2021 that it will pay an interim dividend of 20.00 euro cents per
ordinary share for the year ending 31 December 2021 on Thursday 30 September. The dividend
will be paid in euro. As stated in the announcement, the exchange rate for this payment has been
set today. Mondi plc South African branch register shareholders will receive the dividend in South
African rand cents, converted at a rate of EUR 1 to ZAR 17.01988. Therefore, the equivalent gross
interim dividend in rand cents per ordinary share will be 340.39760.

International Market Update

– European markets closed lower on Friday as global investors continued to weigh the prospect of
slowing economic growth. The pan-European Stoxx 600 closed down by nearly 1%, having earlier
been up by as much as 0.7%. Travel and leisure stocks added 1.1% to lead gains while basic
resources fell 4%. The Stoxx 600 also saw a weekly decline of 1%, down for the third straight week.
Data on Friday showed that U.K. retail sales fell unexpectedly in August, dropping 0.9% month-on-month against a Reuters average forecast for a 0.5% rise. The fourth consecutive monthly decline
marks the longest negative streak since records began.

– Stocks dipped on Friday as investors remain cautious due to a resurgent Covid virus, a Federal
Reserve meeting this week and a historical tendency for September to be a weak month for
equities. Mega-cap technology stocks were mostly in the red, with social media giant Facebook
dropping 2.2% and Alphabet falling just shy of 2%. Apple lost 1.8%, and Microsoft slipped 1.7%. The
Food and Drug Administration advisory committee on Friday rejected a plan to administer booster
shots of Pfizer and BioNTech’s Covid-19 vaccine to the general public.

– Hong Kong’s Hang Seng index led losses among Asia-Pacific markets in early morning trade, with
shares of embattled Chinese developer China Evergrande Group continuing to drop. The S&P/ASX
200 in Australia fell 1.21%, with shares of major miners declining.

In International news

Renault lays out plan to cut 2 000 French jobs in EV shift
Renault SA plans to eliminate 2 000 more jobs while still making nine new models in France as the
struggling automaker reshapes operations in its home country and shifts to electric vehicles. The
company is in talks with French unions to cut 1 600 engineering and 400 support positions
between 2022 and 2024, according to a statement Thursday. During the same period, it will recruit
2 500 people, including in data science and battery chemistry.

Marlboro giant seals takeover of UK inhaler firm
Marlboro cigarette maker Philip Morris International (PMI) has sealed its £1bn bid for the UK
inhaler firm Vectura. PMI has said its bid is now supported by owners of almost three-quarters of
Vectura’s shares – more than the 50% needed for the takeover to go through. Vectura makes
inhaled medicines and devices to treat respiratory illnesses such as asthma.