Daily Report 06 February 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.6% higher at the 80 241 level.

Impala Platinum said on Friday that annual concentrate production was stable at 1.62 million 6E ounces. Total sales volumes declined 2% to 1.52 million 6E ounces, while sales revenue improved 5.2% to R38 117 per 6E ounce. Implats expects its basic and headline earnings and EPS for the period to be within the 20% variance range.

Japan’s Idemitsu Kosan Co agreed to sell its 85% stake in the Ensham coal mine in Australia to a Thungela Resources subsidiary, Sungela Pty, for an upfront payment of A$340 million ($240 million). The deal will help Thungela to diversify away from the home country, where rail and port problems have dented exports to overseas markets as well as provide Thungela with access to the Japanese and other Asian markets, where demand remains strong.

In a trading update from DRD Gold, the company said that EPS for the six months ended Dec. 31, 2022, will be higher than the prior-year period. DRD Gold expects headline EPS for the fiscal first half between 59.5 cents and 68 cents, reflecting an increase from 0.58 cents. Headline earnings per share are expected to rise in a range of 2.6% and 17.4%.

MTN said that after extensive and productive discussions held during the 21-day period between MTN Ghana, MTN and relevant authorities in Ghana, the GRA has on 03 February 2023 fully withdrawn the tax assessment.

 

SA Economy:

The S&P Global South Africa PMI fell to 48.7 in January 2023 from 50.2 in the prior month. The latest reading points to the first downturn in the country’s private sector in three months. Business activity and new orders declined sharply due to extensive load shedding and weak economic conditions.

Transnet CEO, Sizakele Mzimela said that the company may have to increase rail tariffs to recover costs across its network.

 

Global Economy:

U.S. job growth remained strong in January. The data showed that the unemployment rate inched lower to 3.4% last month from 3.5% in December. The average hourly earnings rose 0.3% in January and over the past 12 months, average hourly earnings have increased by 4.4%.

Retail sales in Hong Kong fell by 0.7% year-on-year in December 2022, following a 5.3% fall in November.

 

Global Company:

The FTSE 100 closed 1.03% higher at 7 901, closing at a new record high.

Shell shares gained more than 3% that lead the index higher.

Asian markets are trading lower after reports that the US military shot down a Chinese spy balloon over the Atlantic Ocean, raising geopolitical tensions.

The Hang Seng Index is lower by 1.88% to 21 252.

In China, the Shanghai Composite is down 0.92% to 3 233.

The Dow Jones Industrial Average closed 0.38% lower to 33 926, while the S&P 500 was down 1.03% to 4 136.

Disappointing earnings results from Apple, Google parent Alphabet, and Amazon.com weighed on sentiment.

 

Commodities:

Gold is down 2.87% to $1 862/oz, while Platinum is lower by 5.32% to $971.80/oz.

Brent crude was 2.79% lower at $79.94 a barrel.

 

Currencies:

The rand traded at R17.46 against the US Dollar, R21.07 against British Pound and R18.85 against the Euro.

The Euro is weaker against the US Dollar to trade at $1.0794.