Daily Report 12 December 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.1% higher at the 74 548 level, mainly boosted by some gains in Naspers with Richemont providing further support. For the week, the JSE index rose 0.3%.

In an operational update from Anglo American, the company said that production for the 2022 financial year is likely to drop by 3%. Anglo, which owns Kumba Iron Ore, Anglo American Platinum and De Beers, also highlighted that the company is taking additional strain from bottlenecks in the country’s rail network and the rolling power cuts. However, Anglo expects production to increase 5% in its 2023, 2024 and 2025 financial years.

Shoprite was given the go-ahead by the Competition Tribunal to acquire certain Massmart stores, but with conditions.

 

SA Economy:

Investors are eagerly awaiting the Consumer Price Index (CPI) due on Wednesday and the third quarter employment statistics due on Thursday.

FNB economists said that they expect headline inflation to remain steady in November, before slowing to 7.3% in December.

 

​Global Economy:

In the US, November’s producer price index showed higher-than-expected wholesale prices, which rose 0.3% last month and 7.4% over the previous year. Investors will be watching for the consumer price index due out tomorrow, which is expected to show whether inflation has receded or not. Unless there is a huge CPI surprise, the US Federal Reserve is expected deliver a 50 basis point hike at the end of its December meeting on Wednesday.

Also, the Bank of England and the European Central Bank will hold its monetary policy meetings on Thursday.

 

Global Company:

The FTSE 100 closed flat at 7 476.

The Hang Seng Index led Asian benchmarks lower.

The Hang Seng Index is lower by 1.81% to 19 540. Property companies led the losses, with Country Garden Services shares falling 11%.

In China, the Shanghai Composite is down 0.55% to 3 188.

The Dow Jones Industrial Average closed 0.9% lower to 33 476, while the S&P 500 was down 0.73% to 3 934. For the week, the Dow fell 2.77% and the S&P dropped 3.37%.

Lululemon shares fell 12.85% after the sportswear company issued a weaker-than-expected outlook.

 

Commodities:

Gold is up 0.52% to $1 798/oz, while Platinum is higher by 2.06% to $1 049/oz.

Brent crude was 0.07% lower at $76.10 a barrel.

 

Currencies:

The rand traded at R17.38 against the US Dollar, R21.25 against British Pound and R18.27 against the Euro.

The Euro is slightly weaker against the US Dollar to trade at $1.0514.