Daily Report 09 January 2023

SA Company News:
The JSE FTSE All Share index closed 1.17% higher at 75 439 on Friday, the highest level since early March 2022, boosted mainly by resources and tech companies, Naspers and Prosus.
The JSE came under pressure last year as inflation, interest rate-hike fears and weaker corporate earnings in the US resulted in a broad sell-off in global risk assets through to September. The All Share index reached a low of 63 263 on 29 September 2022. However, the prospect of less aggressive rate hikes and the possible reopening of the Chinese economy saw the market rally into year end.

SA Economy:
The South African manufacturing activity expanded in December 2022.The seasonally adjusted Absa Purchasing Managers Index (PMI) rose to 53.1 points in December from 52.6 points in November. The latest data pointed to the second successive month of expansion, despite the renewed deterioration in business activity due to the persistent loadshedding.

Global Economy:
The annual inflation rate in the Euro Area fell to 9.2% in December 2022, the lowest in four months, and below forecasts of 9.7%.
Eurozone retail sales increased by 0.8% from a month earlier in November 2022.
The US economy added 223 000 jobs in December 2022. The unemployment rate dropped to 3.5%, falling below market expectations of 3.7%. The average hourly earnings for all employees on US private nonfarm payrolls rose by 9 cents, or 0.3%.

Global Company:
The FTSE 100 closed 1.48% higher at 7 699, led by gains in heavyweight mining stocks on optimism that China is reopening its economy.
Shell PLC said that it expects its fourth-quarter earnings to take a $2 billion knock from additional taxes in the European Union and the U.K. government’s energy windfall tax.
The Hang Seng Index is higher by 1.44 % to 21 297, amid reports that China reopened border checkpoints with the financial hub after 3 years of closure.
Chinese tech stocks were boosted by comments that the Chinese government could end its crackdown on the domestic tech sector. Alibaba Group is up almost 8%.
In China, the Shanghai Composite is up 0.63% to 3 173.
Samsung said that it expects a 69% drop in profit on falling tech demand.
The Dow Jones Industrial Average rose by 1.07 % to 33 630, while the S&P 500 climbed 1.08% to 3 895.
Tesla Inc shares fell 4.7% after the company reported that it had cut car prices in China, Tesla’s Model 3 is now more than 30% cheaper in China than in the U.S.

Commodities:
Gold is up 0.61% to $1 864/oz, while Platinum is higher by 1.09% to $1 092/oz.
Brent crude was 0.93% firmer at $78.57 a barrel.

Currencies:
The rand traded at R17.05 against the US Dollar, R20.71 against British Pound and R18.22 against the Euro.
The Euro is firmer against the US Dollar to trade at $1.0680.