Daily Report 06 March 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1% higher at the 78 293 level. For the week, the JSE advanced 1.8%.

African Rainbow Minerals (ARM) reported a 40% jump in its half-year profit due to higher coal and manganese prices. ARM said that headline earnings per share (HEPS) came in at R26.38 ($1.45) in the six months ended December 31, up from R18.87 a year-ago. The company added that the iron ore division reported a 12% decline in headline earnings due to lower prices and a 15% drop in export sales, citing rail logistics challenges. African Rainbow Minerals declared an interim dividend of R14 per share.

The Bidvest Group reported financial results for the six months ended, 31 December 2022. The company said that revenue grew 14% to R57.21 billion and profit attributable to shareholders was R3.12 billion, compared with R2.76 billion a year ago. Earnings per share (EPS) was at R9.166 from R8.101. Bidvest declared a higher per-share dividend of R4.37, payable on the 3^rd of April.

In a trading update from Sun International, the company said that expects headline earnings per share to rise more than 100% to between 213c and 237c per share from 106c previously, boosted by a strong performance by its hotels and resorts. Adjusted headline EPS is also expected to jump more than 100% to between R4.15 and R4.61.

 

SA Economy:

President Cyril Ramaphosa will announce his much awaited cabinet reshuffle at 7pm today. According to reports, the minister of electricity might be the Head of Investment and Infrastructure Development in the Presidency, Kgosientso Ramokgopa.

The S&P Global South Africa PMI increased to 50.5 in February 2023, from 48.7 in January. The latest reading signaled a slight pick-up in the health of private sector economy.

 

Global Economy:

Premier Li Keqiang announced a GDP target of 5% for China this year at the annual National People’s Congress. Economists had expected a more ambitious target of over 5%, amid a rebound in consumer spending and industrial output after the removal of a zero COVID policy. The Chinese economy grew 3% last year. According to the report, China has set a 2023 target of around 3% for its inflation, unchanged from its 2022 target.

Federal Reserve Chair, Jerome Powell will discuss monetary policy before the House and Senate committees tomorrow and Wednesday, proceedings will guide investors on how the central bank is thinking about inflation and its interest rate hiking campaign going forward.

The U.S. non-farm payrolls data will be a key focus this week.

 

Global Company:

The FTSE 100 closed flat at 7 947.

The Hang Seng Index is higher by 0.6% to 20 689.

In China, the Shanghai Composite is down 0.21% to 3 321. Basic materials, consumers, real estate, and financials weighed on the index,

The Dow Jones Industrial Average closed 1.59% higher to 33 390while the S&P 500 was up 1.59% to 4 045. The shift in sentiment came as a result of easing Treasury yields.

Meta shares rose more than 6% after the company announced a sharp price cut for its VR headset.

Costco shares fell 2.8% after its quarterly report missed expectations.

 

Commodities:

Gold is up 0.77% to $1 847/oz, while Platinum is higher by 1.4% to $977.20oz.

Brent crude was 1.26% higher at $85.83 a barrel.

 

Currencies:

The rand traded at R18.16 against the US Dollar, R21.85 against British Pound and R19.33 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0647.