Daily Report 23 March 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.3% higher at the 75 243 level. Tech stocks gained more than 3%, followed by industrials rising 1.9% and financials up 1.4%.

In a trading update from food producer, RFG Holdings, the company said that revenue rose 7.4% in the 21 weeks to end-February, while prices rose 14.7%, mainly as a result of higher packaging and meat costs. RFG also invested in generators at its 13 production plants in South Africa over the past seven years to ensure that food safety is not compromised through inconsistent electricity supply. The company expects to publish its half-year results to end-March on the 24^th of May.

OUTsurance Group reported financial results for the six months ended 31 December 2022. The company said that its headline earnings per share came in at 86.6 cents, up from 35 cents a year ago. OUTsurance said the rise in the half-year profit was due to strong growth in premiums and favourable operating conditions. OUTsurance currently does business in South Africa and Australia, and now plans to enter the Irish market next year. OUTsurance declared a dividend of 56.8 cents per share.

 

SA Economy:

The annual inflation rate edged up to 7% in February 2023 from 6.9% in the prior month, the first rise since last October, while markets had expected it to remain steady at 6.9%.The main upward pressure came from prices of food, transport & non-alcoholic beverages.

 

Global Economy:

The US Federal Reserve raised the fed funds rate by 25bps to 4.75% – 5% in line with consensus ,with the full effect of the banking crisis yet to be determined. In his statement, Fed Chair Jerome Powell said they don’t see rate cuts this year and that they are prepared to raise rates higher than expected if needed.

The Hong Kong Monetary Authority (HKMA) increased interest rates by 25bps to 5.25%.

 

Global Company:

The FTSE 100 closed 0.4% higher at 7 566.

The Hang Seng Index is higher by 1.38% to 19 866.

Tencent Holdings Ltd.’s fourth-quarter net profit rose 12% to 106.27 billion yuan ($15.44 billion), up from CNY94.96 billion a year earlier. Revenue rose slightly to CNY144.95 billion from CNY144.19 billion, helped by a turnaround in Tencent’s advertising business. Tencent shares jumped 6.4%, amid optimism about the company’s growth prospects.

In China, the Shanghai Composite is up 0.33% to 3 276.

US equities finished lower as investors weighed the comments from Fed Chair Powell.

The Dow Jones Industrial Average closed 1.66% lower to 32 030, while the S&P 500 was down 1.67% to 3 936.

GameStop shares gained nearly 35.2% after reporting its first quarterly profit in two years, while First Republic Bank was down nearly 15.5%.

 

Commodities:

Gold is up 0.45% to $1 946.80/oz, while Platinum is higher by 1.05% to $985.10/oz.

Brent crude was 1.79% higher at $76.69 a barrel.

 

Currencies:

The rand traded at R18.16 against the US Dollar, R22.38 against British Pound and R19.80 against the Euro.

The Euro is firmer against the US Dollar to trade at $1.0905.