Daily Market Overview 24 September 2021

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Local Market Update

– JSE all share has gained 1.89% this week after slumping 2.24% on Monday to its lowest level since January. The JSE was in buoyant mood ahead of Friday’s public holiday, gaining for a third straight day as markets globally recovered from a sharp sell-off at the start of the week. The rand was firmer, too, as markets welcomed the Reserve Bank’s decision to keep its benchmark rate at a record low.
The Johannesburg Stock Exchange’s All-share index closed up 1.1% at 64,049 points while the Top-40 index gained
1.24% to 57,643 points.

– The rand was firmer after the SA Reserve Bank’s monetary policy committee (MPC) kept the repo rate unchanged at a record low 3.5% on Thursday, as markets expected
At 3.20pm, the rand had firmed 0.93% to R14.6755/$, after initially reaching R14.6814/$ shortly after the Bank’s announcement. It was 0.69% firmer at R17.2026/€ and 0.20% stronger at R20.1173/£. The euro was had gained 0.25% to $1.17215..

– In commodity markets, US crude rose 0.1% to $72.33 a barrel, while Brent crude gained 0.2% to $76.23 per barrel. Spot gold lost 0.3% to trade at $1,763.32/oz.

In Local news

Stanlib’s Keillen Ndlovu resigns
Stanlib’s head of listed property investment, Keillen Ndlovu, has resigned after 16 years with the asset manager.
Ndlovu, who joined Stanlib in 2005 from Standard Bank, will be replaced by Nesi Chetty, the listed property unit’s to senior portfolio manager, who takes over at the end of October

Steinhoff’s Dutch claimants give settlement the go ahead
Opponents have eight days to appeal the decision, failing which the ruling becomes law in the Netherlands
Dutch court has approved Steinhoff’s settlement proposal with claimants, taking the deal one step closer to implementation.
Appeals against the decision must be lodged within eight days, failing which the approval becomes law in the Netherlands

International Market Update

– Europe’s turnaround, though, saw the euro up at $1.1716, a month high while sterling also rose ahead of a Bank of England meeting, which is expected to strike a hawkish tone.

– The three major US stock indices had closed up 1%, not far off where they were before the Fed announcement, and US treasury yields were little changed at 1.3023% after see-sawing overnight.

– Asia’s nerves were also calmed after China injected fresh cash into its financial system ahead of an $83.5m Evergrande bond coupon deadline that could be the start of one of the world’s largest corporate defaults in history.

In International news

Xi tells UN China will stop funding new overseas coal power projects
The pledge was broadly welcomed, but critics say it does not address China’s huge coal build at home
Chinese leader Xi Jinping said on Tuesday that China would not build new coal-fired power projects abroad, using his address at the UN General Assembly to add to pledges to deal with climate change. Xi provided no details, but depending on how the policy is implemented, the move could limit the financing of coal plants in the developing world.

As gas prices soar, UK assures no ‘winter of discontent’ in store
Tesco, said last week the shortage of truck drivers would lead to panic-buying in the run-up to Christmas if action is not taken. Consumers should not panic buy products as Britain is not heading back into a 1970s-style “winter of discontent” of strikes and power shortages, a junior minister said on Thursday. Soaring wholesale European natural gas prices have sent shock waves through energy, chemicals and steel producers, and strained supply chains that were already creaking due to a shortage of labour and the tumult of Brexit.