South African Market Overview 26 October 2021

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


Local Market Update

  • The top 40 index fell 0.13% yesterday to 60,445.78, while the broader all-share index closed 0.1% lower at lower at 66,980.45. Shares in mining company Sibanye Stillwater fell 5% after the company said it was in talks to buy the Santa Rita nickel and Serrote copper mines in Brazil. Other news: South Africa faces an increased risk of power outages as maintenance work needs to be carried out on its ailing coal-fired power plants, the state-owned utility said. The overall availability of electricity from Eskom power stations this year has been lower than in the previous financial year and current output is below target, Group Chief Operating Officer Jan Oberholzer said in a presentation on Monday.
  • The rand trended firmer on Monday, supported by higher precious metals prices. At the close of trading, the rand was trading R14.70, or 1.01%, firmer against the dollar. The dollar recovered from recent lows and was trending firm this morning in choppy trading as a series of data and central bank meetings are due that investors expect to influence interest rate developments.
  • Gold prices edged lower this morning, weighed down by a rise in the dollar as investors eye upcoming key central bank meetings this week. Oil prices eased slightly this morning, recovering from a sustained rally driven by strong demand in the United States, the world’s largest consumer of oil and oil products. While China’s red-hot power and coal markets have cooled somewhat following government intervention, energy prices remain elevated globally as temperatures drop with the onset of northern winter.


In Local News

Aspen calls for new special economic zone around its Gqeberha plant

Stephen Saad, CEO of JSE-listed Aspen Pharmacare Group, on Monday called on government to consider developing a new special economic zone (SEZ) around its manufacturing facility in Gqeberha (formerly Port Elizabeth) to be considered. Saad was speaking at the opening of the new anaesthetics production line at the facility, which will make it one of the largest manufacturing centres for this product in the world. Africa’s largest pharmaceutical manufacturer has also committed to increasing its production capacity for the Covid-19 vaccine to 1.3 billion doses per year to serve the continent’s population. The group’s CEO also spoke out against unequal access to healthcare and pledged to minimise this by continuing to invest in the continent.


SIBANYE STILLWATER LIMITED – Cautious announcement

Sibanye-Stillwater informed its shareholders that the company is in negotiations with affiliates of funds advised by Appian Capital Advisory LLP to acquire both the  Santa Rita Nickel and the Serrote copper mines in Brazil. If successful, these negotiations may have a material impact on the price of the Company’s securities.  Therefore, shareholders of Sibanye-Stillwater are advised to exercise caution when trading in the Company’s securities until a full announcement is made.