Daily Report 30 January 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.4% higher at the 80 791 level. The JSE gained 2.5% for the week, stretching the month-to-date gains to just under 11%.

Thungela share price has been affected recently by a fall in global coal prices. This comes after Europe averted an energy crunch by securing sufficient natural gas supplies and the winter season turned out to be much warmer than expected. Thungela’s share price is down around 23% since the start of the year, while the international coal price is at $355 per tonne, down from a peak of $455 in September.

In a trading update from Nampak for the three months ended 31 December 2022, the company said that revenue growth will be in excess of 20% relative to the comparative period and they have also reduced offer size of the proposed rights offer from R2 billion to no more than R1.5 billion.

The Foreign Minister, Naledi Pandor advised MTN to cooperate with the Ghana Revenue Authority in resolving a $773 million tax liability dispute. Pandor said both sides should “do everything possible to find an amicable solution” and highlighted the importance of infra-African cooperation in the continent’s economic growth.

 

SA Economy:

The U.S. Treasury Secretary, Janet Yellen met with local officials in the coal mining region of Mpumalanga on Friday, pledging America’s firm support to ensure the country’s transition to renewable energy does not get left behind.

Toyota SA said that that by 2025 they want 20% of its sales to be electric vehicles (EVs) and Mercedes-Benz SA (MBSA) is aiming for 50% by 2026.

President Cyril Ramaphosa is expected to announce an emergency package of measures this week to address the prolonged load shedding in the country.

 

Global Economy:

Japan and Netherlands will join US chip controls to China, limiting China’s access to advanced semiconductor machinery. It means ASML and Nikon will be prevented from selling some of its newer machines that are necessary for making some types of advanced chips.

The US Federal Reserve’s policy meeting on Wednesday will be the main event this week. The Fed is expected to increase interest rates 25 basis points.

The European Central Bank and Bank of England are also due to announce their interest rate decisions on Thursday.

 

Global Company:

The FTSE 100 closed 0.3% higher at 7 770,

H&M reported a 68% decline in its annual profit after economic and said that the Russia exit hampered its efforts to rebound from the Covid-19 pandemic.

LVMH Moet Hennessy Louis Vuitton SE reported weak second-half profit, however, investors’ hopes that the luxury fashion giant will receive a boost from the reopening of the Chinese economy after the lifting of the strict COVID-19 rules.

The Hang Seng Index is lower by 0.87% to 22 492, with technology, basic materials, healthcare, and financial shares retreating. Country Garden Hlds falling 6.2%, Alibaba Group Hlds. down 4.5% and Tencent Hlds. lower by 3%.

In China, the Shanghai Composite is up 0.39% to 3 277, as markets re-opened after the week-long Lunar New Year holidays.

The Dow Jones Industrial Average closed 0.08% higher to 33 978, while the S&P 500 was up 0.25% to 4 070.

Silvergate Capital, a crypto-focused bank, fell 22% after the company said it had suspended dividend payments as its shares has been falling since November.

Meta, Apple, and Alphabet will report their earnings this week.

 

Commodities:

Gold is flat at $1 928.50/oz, while Platinum is lower by 0.62% to $1 007/oz.

Brent crude was 0.93% lower at $86.66 a barrel.

 

Currencies:

The rand traded at R17.20 against the US Dollar, R21.32 against British Pound and R18.69 against the Euro.

The Euro is flat against the US Dollar to trade at $1.0869.