Daily Report 09 November 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.3% higher at the 72 466 level.

In a trading update from Investec, the company raised its guidance for the half year ended 2024. Investec expects adjusted EPS of 0.38 pound sterling to 0.39 pound, up from a previous forecast of 0.355 pound to 0.375 pound and headline EPS is expected to be between 0.365 pound and 0.375 pound, compared with 0.338 pound and 0.358 pound previously. Operating profit is expected to rise in a range of between GBP 428.7 million and GBP 449.6 million, from GBP 405.0 million. The company said this growth in adjusted operating profit was driven by continued client acquisition, positive effects from higher global interest rates and year-on-year growth in the lending book.

SA Economy:

Stats SA will be publishing mining and manufacturing production data for September later today. Mining production fell 2.5% year on year in August, worse than market expectations of a 2% drop, after an upwardly revised 4.4% slump in the prior month, according to Stats SA.

Manufacturing production growth slowed to 1.6% year on year in August, well below the market estimate of 2.3%, after a downwardly revised 2.2% increase in July.

Global Economy:

Retail sales in the Euro Area declined by 0.3% month-over-month in September 2023, exceeding market expectations of a 0.2% drop. Consumer demand continues to face challenges due to persistently high inflation and elevated borrowing costs that is at multi-year highs.

China’s consumer price index (CPI) dropped 0.2% in October from a year earlier, a faster decline than the 0.1% fall expected by economists. The core inflation, which excludes food and fuel prices, slowed to 0.6% in October from 0.8% in September, as China’s continues to battle with disinflation. The producer price index (PPI) fell 2.6% year-on-year against a 2.5% drop in September. Economists had predicted a 2.7% fall in October.

US Fed Chair Jerome Powell did not comment on monetary policy at the U.S central bank statistics conference yesterday. However, he is scheduled to speak at another conference later today.

Global Company:

The FTSE 100 closed 0.11% lower at 7 401.

The Hang Seng Index is trading 0.33% lower at 17 508.

The Hang Seng Tech Index is trading lower, with Tencent Holdings falling 1% to HK$305.40 and Alibaba Group also lower by 1% to HK$81.70.

Ping An Insurance slipped 1.6% to HK$37.90 after the company denied reports that it will take over property developer, Country Garden and assume all its debts.

In China, the Shanghai Composite is flat at 3 052.

The Dow Jones Industrial Average closed 0.12% lower to 34 112, while the S&P 500 closed 0.1% higher at 4 382.

Disney reported earnings per share of 82 cents, above expectations of 70 cents. Quarterly revenue came in at $21.2 billion, in line with consensus. The company said that it added nearly 7 million Disney+ streaming subscribers in the quarter.

Commodities:

Gold is lower by 0.91% to $1 948/oz, while Platinum is lower by 2.16% to $874/oz.

Brent crude was 2.33% lower at $79.42 a barrel.

Currencies:

The rand traded at R18.47 against the US Dollar, R22.69 against British Pound and R19.78 against the Euro.

The Euro is slightly weaker against the US Dollar to trade at $1.0708.