South African Market Overview 21 June 2022

Sharing our Daily Market Overview with you, ensuring that you do not miss out on any important market changes!

 

Local Market Update

  • Stocks on the Johannesburg Stock Exchange (JSE) advanced, reflecting modest gains in global markets early in a week likely to be dominated by news on interest rate developments and inflation. Overall, the All-Share Index on the JSE rose 1.47% to 66,350 points, while the Top 40 Index closed 1.68% higher at 60,074 points. Meanwhile, power utility Eskom announced that the second stage of load shedding will resume from Monday evening between 17:00 and 22:00 and will continue until Thursday evening. In a statement released Monday, the power utility blamed a lack of generation capacity for the latest round of blackouts.
  • The rand weakened slightly against the dollar on Monday as investors continued to assess risks to the economy from tighter U.S. monetary policy following the Federal Reserve’s biggest interest rate hike in a quarter century. By the end of the day, the rand was trading at approx. R16.04 against the dollar, 0.07% weaker.
  • Gold prices gained today as the dollar weakened while investors closely watched the major central banks’ stance on rate hikes for a clearer outlook on gold. Oil prices rose 1% in early trading this morning, recouping much of last week’s losses, as the focus returned to tight crude and fuel supplies rather than concerns that a recession could hurt demand. Supply concerns are buoying the market as Western sanctions on Russia and the extent to which Russian production could decline due to sanctions on the assets needed to produce it.

 

In Local News

 

Freight industry and government sign agreement to end N3 blockades

The Inter-Ministerial Committee on Road and Freight Transport (IMA), in cooperation with stakeholders in the road and freight transport industry, has agreed and signed an 11-point action plan to address the industry’s challenges and the recruitment of foreign nationals that led to the recent further blockades on the N3. However, the Road Freight Association (RFA), one of the signatories to the agreement, has defiantly stated that it will “never agree” to point 11 of the action plan, which proposes the introduction of operating licences for the industry. All other stakeholders have expressed support for the plan.

Zondo commission: report now to be delivered June 22
A panel that has spent nearly four years investigating state bribery in South Africa will hand over the final two volumes of its report to President Cyril Ramaphosa in Cape Town on June 22. Due to difficulties in processing parts five and six in time for Monday’s scheduled handover, the event has been postponed by two days, said Itumeleng Mosala, head of the secretariat of the Commission of Commission of Inquiry on State Corruption, said in an emailed statement. The presidency will announce the date, he said.