Daily Report 02 December 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.26% higher at the 75 020 level.

Sasol shares fell 4.5% after the company said it expects challenges at its Secunda operations to impact coal and fuel production.

Hosken Consolidated Investments’ (HCI) reported that its headline earnings rose to R902 million for the six months ended 30 September 2022 from R219 million previously. Profit in the group’s gaming business almost doubled. Headline earnings per share increased 312%. HCI declared an interim ordinary dividend of 50 cents per share.

Murray & Roberts (M&R) said that it has sold its entire investment in the Gautrain for R1.3bn deal as it aims to reduce debt. M&R held its investment in the Gautrain through its 50% shareholding in the Bombela Concession Company (BCC).

Tiger Brands Limited reported results for the year ended 30 September 2022. The company said that revenue increased by 10% to R34.0 billion, headline earnings per share increased by 51% to 1 702 cents and earnings per share increased by 65% to 1 762 cents. Tiger Brands declared a final ordinary dividend of 653 cents per share for the year ended 30 September 2022.

 

SA Economy:

South African manufacturing activity expanded in November. The seasonally adjusted Absa Purchasing Managers Index (PMI) rose to 52.6 points in November from 50.0 points in October. The manufacturing sector has been quite resilient despite severe power cuts hampering producers.

 

Global Economy:

The Personal Consumption Expenditure (PCE) price index in the United States increased by 6% year-on-year in October 2022, below 6.3% in September.

Personal income in the United States increased 0.7% from October of 2022, up from a 0.4% rise in September and above market expectations of a 0.4% gain.

The number of Americans filing new claims for unemployment benefits decreased by 16 000 to 225 000 for the week ending November 26th, compared to market expectations of 235 000.

Investors now await US non-farm payrolls data due out later today.

The unemployment rate in the Euro Area fell to a record low of 6.5% in October 2022 from 6.6% in the prior month, slightly below market estimates of 6.6%.

 

Global Company:

The FTSE 100 closed 0.19% lower at 7 558.

Asian stock markets are trading cautiously ahead of the U.S. payrolls data

The Hang Seng Index is lower by 0.17% to 18 703. Shares in real estate developers led the decline, falling 3.4%.

In China, the Shanghai Composite is down 0.22% to 3 158.

The Dow Jones Industrial Average fell by 0.56% to 34 395, while the S&P 500 was marginally lower at 4 076, with financial stocks falling. Investors were concerned that banks might set aside more funds to cover potential credit losses and that would lower their profits.

Shares of Salesforce closed down more than 8% after the company said that its co-CEO would be stepping down.

 

Commodities:

Gold is up 0.08% to $1 672/oz, while Platinum is higher by 1.08% to $985.60/oz.

Brent crude was 0.29% lower at $97.45 a barrel.

 

Currencies:

The rand depreciated sharply against the USD, the lowest, following reports that President Cyril Ramaposa was considering resigning.

The rand traded at R17.56 against the US Dollar, R21.49 against British Pound and R18.48 against the Euro.

The Euro is firmer against the US Dollar to trade at $1.05.