Daily Report 08 December 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.73% lower at the 74 011 level. The JSE followed global markets weaker as concerns grew that the US Federal Reserve could implement rate hikes for longer than previously expected.

In a trading update from Sanlam, the company said that profit in its life businesses showed a noticeable recovery in the 10 months to end-October as Covid-19-related death claims declined. However, the volatility in global markets affected its investment returns. Headline earnings per share were down 6% during the review period year on year. Sanlam’s share price closed 3.3% lower to R51.41.

Thungela Resources Limited released a trading update for the financial year ending 31 December 2022, where that company said that the business has continued to deliver strong earnings and cash generation for the period 1 January 2022 to 30 November 2022 and expects to achieve another strong set of financial results for the year. Headline earnings per share (HEPS) for FY 2022 is expected to be at least R131.00, an increase of at least R64.43 (or 97%) compared to FY 2021 HEPS of R66.57. Earnings per share (EPS) for FY 2022 is expected to be at least R125.00. This is an increase of at least R63.92 (or 105%) compared to FY 2021 EPS of R61.08.

 

SA Economy:

Eskom escalated load-shedding to stage 6 for the fourth time this year. The power cuts will be implemented until Friday morning and will leave some consumers without power for more than 10 hours a day and will cost the economy about R3bn a day.

 

​Global Economy:

Foreign exchange reserves in Hong Kong increased to $423.2 billion in November 2002, up from $417.2 billion in the previous month.

German industrial production fell less than expected in October, dropping 0.1% in the month, instead of the forecast 0.6% decrease.

Chinese authorities announced that a range of COVID restrictions had been eased, including allowing some people to quarantine at home and ending test requirements to enter most public venues.

 

Global Company:

The FTSE 100 closed 0.43% lower at 7 489. The FTSE 100 closed weaker ahead of major central bank decisions next week.

The Hang Seng Index is higher by 2.86% to 19 350.

In China, the Shanghai Composite is down 0.16% to 3 053, suggesting that investors had already discounted China’s more relaxed Covid stance.

The Dow Jones Industrial Average closed flat at 33 597, while the S&P 500 was lower by 0.19% to 3 933.

Facebook parent Meta shares closed marginally weaker, following reports the European Union regulators have ruled that Facebook will need to ask users before running advertising based on their personal data.

 

Commodities:

Gold is up 0.91% to $1 785/oz, while Platinum is higher by 1.57% to $1 024/oz.

Crude oil prices weakened on concerns about Chinese demand and expectations of little impact from Western sanctions on Russian supplies.

Brent crude was 2.82% lower at $77.17 a barrel.

 

Currencies:

The rand traded at R17.19 against the US Dollar, R20.95 against British Pound and R18.05 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0497.