Daily Report 23 February 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.8% lower at the 78 170 level.

In a trading update from Standard Bank, the company expects headline earnings per share (HEPS) to rise in a range of 30% to 35%. Headline EPS is estimated to be in the range of R20.44 to R21.23, while EPS is likely to be between R20.63 and R21.41. The bank is scheduled to release its full-year results on the 9^th of March.

In a trading update from Grindrod, the company said that it expects its earnings for the year ended 31 December 2022 to increase by between 37% and 43% compared to 92.2 cents achieved in 2021. The marine cargo handling group estimates a 232% to 255% increase in basic EPS for 2022. The company is scheduled to publish its full-year 2022 results on the 2^nd of March.

Gold Fields said that its profit for the full-year 2022 declined amid an increase in revenue. Profit for the year ended 31 December 2022, fell to $711 million from $789.3 million a year ago. EPS declined to $0.78 from $0.88. Headline EPS rose to $1.18 from $0.99. Gold Fields declared final dividend of R4.45, payable on 20^th of March, bringing the total payout for 2022 to R7.45.

 

SA Economy:

Finance Minister, Enoch Godongwana presented the 2023 budget. Investors assessed updated projections for the country’s fiscal trajectory and economic growth while welcoming the clarity on the government’s plans to assist Eskom. Eskom will get R254 billion in debt relief over the next three years, to help strengthen its balance sheet and enable it to restructure.

 

Global Economy:

The IFO Business Climate indicator for Germany increased to 91.1 in February 2023, from a downwardly revised 90.1 in January, compared to forecasts of 91.2.

The FOMC meeting minutes said that majority of Fed policymakers favored a scale-down in the pace of interest rate hikes, opting for a 25 bps hike in February. However, they warned that the tightening cycle is not over as inflation risks remain tilted to the upside.

 

Global Company:

The FTSE 100 closed 0.59% lower at 7 930, dragged lower by heavyweight materials and energy stocks. Rio Tinto and Anglo American were among the losers, down over 3% each.

The Hang Seng Index is lower by 0.23% to 20 374.

In China, the Shanghai Composite is down 0.2% to 3 284.

The Dow Jones Industrial Average closed 0.26% lower to 33 045, while the S&P 500 was down 0.16% to 3 991.

Nvidia Corporation forecasted first-quarter revenue to be above market estimates and cited increased demand for chips used to power artificial intelligence services. Nvidia gained more than 8%.

 

Commodities:

Gold is marginally lower to $1 832/oz, while Platinum is higher by 0.5% to $947.40/oz.

Brent crude was 3.04% lower at $80.60 a barrel.

 

Currencies:

The rand traded at R18.23 against the US Dollar, R21.99 against British Pound and R19.36 against the Euro.

The Euro is slightly weaker against the US Dollar to trade at $1.0620.