Daily Report 30 November 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.3% lower at the 73 128 level.

African Bank Limited released its audited annual financial results for the year ended 30 September 2022. The Group’s net profit after tax for the current year ended 30 September 2022 has improved significantly by 38%, to R736 million, from R534 million for the comparable prior year ended 30 September 2021. Credit impairment charged up 7% to R1 436 million, retail savings and investment customer deposits increased by 15% to R10 840 million and insurance profit after taxation was down 26% to R366 million.

Barloworld said that they were unbundling and separately listing its fleet management business, Zeda. Barloworld will trade ex-entitlement on 13 December 2022 and on the same day, Zeda will list on the JSE under the share code ZZD. Barloworld shareholders will receive 1 Zeda share for every 1 Barloworld share held.

 

SA Economy:

The unemployment rate eased slightly in the third quarter as the number of unemployed people decreased.

Stats SA said that the unemployment rate fell by 1 percentage point, from 33.9% in the second quarter to 32.9% in the third, supported mainly by the manufacturing, trade, construction and transport sectors. The number of unemployed persons declined by 269 000 to 7.725 million and employment rose by 204 000 to 15.765 million.

South Africa’s private sector credit expanded 9.34% year on year in October after rising by 9.74% in September. The M3 measure of money supply increased by 9.82% in October after growing 8.75% in the previous month.

According to the latest information from the Central Energy Fund, petrol prices may increase by 38c to 48c a litre next week Wednesday,but diesel may be cut from record-high levels and could decrease by between R1.29 and R1.35 a litre.

 

​Global Economy:

China’s manufacturing PMI declined to 48.0 in November 2022 from 49.2, below market forecasts of 49.0, amid a new wave of COVID cases and tough restrictions in some large cities.

China said that they will speed up COVID-19 vaccinations for elderly and avoid excessive restrictions.

The Services Confidence Indicator in the Euro Area was slightly up to 2.3 in November 2022 from 2.1 in the previous month, beating market consensus of 2.0.

The Economic Sentiment Indicator in the Euro Area rose 1 point to 93.7 in November 2022.

The Consumer Confidence Indicator in the Euro Area rose by 3.6 points to -23.9 in November 2022.

The Consumer Price Inflation (CPI) in Germany fell to 10% year-on-year in November 2022, down from October’s all-time high of 10.4% and below market consensus of 10.4%.

 

Global Company:

The FTSE 100 closed 0.51% higher at 7 512, boosted by gains in oil shares and miners as oil and metal prices rebound on hopes that China may ease its Covid-19 restrictions.

The Hang Seng Index is higher by 0.42% to 18 279.

Bilibili Inc. shares gained 9.6% to 119.00 Hong Kong dollars (US$15.24) after the company posted a smaller-than-feared net loss for the third quarter, while revenue growth also beat expectations.

In China, the Shanghai Composite is trading flat at 3 150.

U.S. stocks closed mixed as investors were kept wondering on what Federal Reserve Chairman Jerome Powell might say at the Brookings Institution later today ahead of the next interest rate meeting on the 13^th and 14^th of December.

The Dow Jones Industrial Average closed flat at 33 852, while the S&P 500 was lower by 0.16% to 3 957.

 

Commodities:

Gold is unchanged at $1 754/oz, while Platinum is lower by 0.68% to $1 005/oz.

Market will focus on the OPEC+ meeting on 4^th of December, where members will decide on oil-production levels.

Brent crude was 1.05% lower at $85.04 a barrel.

 

Currencies:

The rand traded at R17.00 against the US Dollar, R20.34 against British Pound and R17.58 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0340.