Daily Report 09 December 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.62% higher at the 74 467 level, while its global peers traded mixed as investors remained cautious amid mounting recession risks.

Tech company, Naspers was up 2.2% and Prosus gaining 3% posted the biggest gains amid the easing of Covid restrictions in China.

Sasol is now trading at levels last seen at the beginning of January this year.

 

SA Economy:

The FNB/BER Consumer Confidence Index for South Africa improved to -8 points in the fourth quarter from -20 points in the previous period. The survey showed that the confidence levels of high- and middle-income households improved over the quarter, but that of low-income households deteriorated.

According to data from the South African Reserve Bank, the current account deficit came in at R18.1 billion ($1.06 billion) from July to September, less than the R107 billion deficit registered in the previous quarter. This was due to a reduced shortfall on the primary income account even as the country’s trade surplus fell to R233 billion from R252 billion the previous quarter as the cost of imports increased while the price of exports decreased.

Manufacturing production in South Africa rose by 1% from a year earlier in October 2022, following a 2.9% rise in the prior month and missing market estimates of a 4.5% increase.

 

​Global Economy:

China’s passenger car retail sales in November dropped by 9.2% from a year ago, due to falling demand, as the nation had to cope with a slowing economy under harsh Covid-19 curbs.

The number of Americans filing applications for unemployment benefits increased last week by 62 000 to 1.671 million, suggesting that demand for labour could be cooling down.

China’s annual inflation rate fell to 1.6% in November 2022 from 2.1% in the prior month, matching market consensus.

 

Global Company:

The FTSE 100 closed 0.48% lower at 7 299, as investors digested company earnings from Frasers Group that fell almost 9% and British American Tobacco falling 3% after the company said that U.S. industry volumes remain under pressure due to economic factors.

Asian stocks are trading a bit higher, with the Hang Seng Index higher by 1.48% to 19 737.

In China, the Shanghai Composite is flat at 3 196.

Year to date, the Hang Seng has lost 15% and the Shanghai composite is down about 12%.

The Dow Jones Industrial Average rose by 0.55% to 33 781, while the S&P 500 climbed 0.75% to 3 963.

Alphabet shares rose 0.5% following reports that the company is considering merging its Waze and Maps divisions.

Microsoft shares ended 1% higher even though the Federal Trade Commission is looking to block the company’s acquisition of Activision Blizzard.

 

Commodities:

Gold is up 0.18% to $1 788/oz, while Platinum is higher by 0.3% to $1 027/oz.

Brent crude was 1.34% lower at $76.15 a barrel.

 

Currencies:

The rand traded at R17.13 against the US Dollar, R20.99 against British Pound and R18.12 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0580.