Daily Report 17 January 2024

SA Company News:

TThe Johannesburg Stock Exchange All-Share Index closed 0.9% lower at the 73 003 level, led lower by the resource sector which was down 1.55% and industrials lower by 1%. Anglo American shares were down 1.62% to R423.05 and Naspers fell 2.32% to R2 909.24 per share.

SA Economy:

Finance Minister, Enoch Godongwana, said that next month’s budget will be a “difficult one” as the nation’s ability to service its growing debt remains a challenge. The Minister will table the annual budget in late February and is expected to announce more details on the National Treasury’s plans to address the ballooning debt situation

Global Economy:

Germany’s inflation rate rose to 3.7% in December 2023, climbing from 3.2% year-on-year in November.
The primary upward pressure came from the surge in energy prices.
The ZEW Indicator of Economic Sentiment for Germany rose by 2.4 points to reach +15.2 in January 2024, surpassing market expectations of +12. This is the highest reading since February, signaling an optimistic shift in economic expectations for Europe’s largest economy, as more than half of the respondents anticipate interest rate cuts by the ECB in the first half of the year.
China’s economy grew 5.2% year-on-year in the fourth quarter, missing the 5.3% forecast. China’s GDP climbed 5.2% for the full year of 2023, exceeding the government’s 5% target.
China’s retail sales increased by 7.4% year-on-year in December 2023, missing market consensus of 8.0% and slowing from a 10.1% rise in November.
Investors are now awaiting the release of US retail sales data for December later today.

Global Company:

The FTSE 100 closed 0.48% lower at 7 558.
Financials were among the main losers, with Lloyds, Standard Chartered, and Prudential closing 2% lower.
Asian equity markets are trading lower as investors digest the weaker than expected GDP data that came out from China.
The Hang Seng Index is trading 3.07% lower at 15 377.
In China, the Shanghai Composite is down 0.87% to 2 868.
The Dow Jones Industrial Average closed 0.37% lower at 37 361 while the S&P 500 closed 0.87% lower at 4 566.
Goldman Sachs reported a 51% rise in profit for the fourth quarter after the company said that it has capitalized on a recovery in markets. Goldman Sachs said that its full-year net income of $8.52 billion for 2023 was down 24%.
Morgan Stanley reported Q4 EPS of $0.85, while revenue for the quarter came in at $12.9 billion, above the $12.7 billion reported a year ago and the consensus estimate of $12.79 billion.

Commodities:

Gold is trading lower by 1.34% at $2 020/oz, while Platinum is lower by 1.75% at $895/oz.
Brent crude was 0.69% lower at $77.37 a barrel.

Currencies:

The rand traded at R19.01 against the US Dollar, R23.98 against British Pound and R20.66 against the Euro.
The Euro is slightly weaker against the US Dollar to trade at $1.0864.