Daily Report 01 February 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.1% lower at the 79 477 level, as investors became more cautious ahead of the US Federal Reserve’s interest-rate policy decision due later today.

In a trading statement from Sea Harvest Group, the company said that it expects to report an EBIT of between R490 million and R510 million for 2022, a decrease of 24% to 27%. Basic EPS of between R1.09 and R1.14, reflecting an up to 35% drop from the previous year. Sea Harvest’s performance was negatively impacted by a significant increase in fuel prices, one-off costs linked to the MG Kailis acquisition, higher interest rates and load-shedding.

Renergen said that it plans to list on the Nasdaq exchange later this year to raise additional funding for phase two of its Virginia Gas Project.

MTN Nigeria released audited results for the financial year ended 31 December 2022, the company said that mobile subscribers increased by 10.5% to 75.6 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 22.0% to N1.1 trillion, earnings per share (EPS) rose by 21.3% to N17.79 kobo and the company declared a final dividend of N10 per share.

 

SA Economy:

Eskom said that they would implement “Stage 5” and “Stage 6” rotational power cuts at different periods, citing breakdowns at its power plants. ANC Secretary-General Fikile Mbalula called for the declaration of a state of disaster around the energy crisis.

SA’s private sector credit grew in December. Bank data showed that credit demand grew 7.7%, slowing from 8.3% the previous month.

South Africa recorded a trade surplus of R5.4 billion in December 2022, smaller than market expectations of R5.5 billion. Exports fell by 5.1%, while imports fell at a softer 4.2%.

 

Global Economy:

The unemployment rate in Germany held steady for a fifth month in a row at 5.5% in January 2023, in line with market expectations.

The Eurozone economy grew slightly by 0.1% in the final quarter of 2022, easing from a 0.3% expansion in the previous three-month period but beating market consensus of a 0.1% contraction.

The S&P Global India Manufacturing PMI fell to a three-month low of 55.4 in January 2023 from 57.8 in December.

The Indian Finance Minister, Nirmala Sitharaman said the country’s economy is likely to grow 7.0% for the year ending March 2023.

The Caixin China General Manufacturing PMI edged up to 49.2 in January 2023 from December’s low of 49.0 but less than market consensus of 49.5.

 

Global Company:

The FTSE 100 closed 0.17% lower at 7 771, dragged down by miners, energy stocks and banking shares.

The Hang Seng Index is higher by 0.75% to 22 004, high-growth energy and technology shares led the advance.

In China, the Shanghai Composite is up 0.44% to 3 270, tracking the global equity rally as signs of cooling inflation in the US supported expectations of less aggressive Federal Reserve policy tightening.

The Dow Jones Industrial Average closed 1.08% higher to 34 086, while the S&P 500 was up 1.44% to 4 076.

Snap shares fell 14% after the social media firm said that it had missed revenue forecasts for the latest quarter, dragging peers Meta Platforms (-1.3%) and Pinterest (-2.1%) lower.

PayPal shares went up 2.3% after the company said it plans to cut 2 000 jobs.

 

Commodities:

Gold is up 0.35% to $1 929.50/oz, while Platinum is higher by 0.06% to $1 01/oz.

Brent crude was 0.49% lower at $84.49 a barrel.

 

Currencies:

The rand traded at R17.41 against the US Dollar, R21.44 against British Pound and R18.92 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0873.