Sanlam Private Wealth Morning Digest 25 October 2021

Local Markets

The Top-40 index was down 0.13% to 60,445.78 yesterday, while the broader all-share closed 0.1% lower at 66,980.45. Shares in miner Sibanye Stillwater fell 5% after the company said it was in talks to buy Santa Rita nickel and Serrote copper mines in Brazil. In other news, South Africa faces an increased risk of power outages because maintenance needs to be carried out at deteriorating coal-fired power stations, the state energy utility said. The availability of electricity from Eskom’s plants was lower overall this year than the previous financial year and the current performance is below target, Group Chief Operating Officer Jan Oberholzer said in a presentation on Monday.

American Markets

U.S. stocks rose to record highs on Monday as investors prepared for a major week of earnings from heavyweight tech companies. Tesla, which reported record revenue and profits last week, gained more than 12% and saw its market cap surpass $1 trillion after Morgan Stanley hiked its price target on the shares to $1,200 from $900. Rental car company Hertz also announced that it would order 100,000 Tesla vehicles. Energy stocks were an area of strength for the market on Monday as West Texas Intermediate crude futures touched $85 per barrel.