Daily Report 11 November 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.2% higher at the 69 439 level.

DSTV operator Multichoice has published its interim results for the six months ending 30 September 2022.The group reported that group revenue went up 7% to R28.65 billion for the period, with operating profits up 6% to R6.2 billion. However, it posted a headline loss of R248 million loss per share of 60 cents, owing to net foreign exchange translation losses of about R3 billion attributable to the weaker rand. No dividend has been declared based on the interim results.

In a trading update from Sephaku Holdings Limited, the company said that headline earnings per share (HEPS) to be between 11.11 cents and 11.67 cents representing an increase of between 58% and 66% (H1 2022: HEPS at 7.03 cents) and basic earnings per share (BEPS) to be between 10.10 cents and 10.66 cents representing an increase of between 45% and 53% (H1 2022: BEPS at 6.98 cents). SepHold is finalising the financial results for the six months ended 30 September 2022 to be released on SENS

on or about 14 November 2022.

In a trading update from Transaction Capital Limited, the company said that headline earnings per share (HEPS) to decrease by between 49% and 54% and basic earnings per share (BEPS) to decrease by between 34% and 30%. Transaction Capital’s results for the full year ended 30 September 2022 will be released on SENS on Tuesday, 15 November 2022.

 

SA Economy:

Manufacturing production rose by 2.9% from a year earlier in September 2022, the third straight month of increases and better than market expectations of a 2.35% drop. The largest positive contributions came from the manufacture of motor vehicles, parts and accessories and other transport equipment.

Mining output was down by 4.5% year-on-year in September after declining by a downwardly revised 6.4% year-on-year (previously -5.9% y/y) in August.

 

Global Economy:

Lending by Chinese banks in October dropped sharply from the previous month and were much lower than market expectations, as demand across the board weakened amid new Covid-19 flare-ups and tightened government restrictions. China’s Total Social Financing (TSF), a broad measure of credit and liquidity in the economy, went down to CNY 0.91 trillion in October 2022 from CNY 3.53 trillion in the previous month and below market expectations of CNY 1.60 trillion.

US inflation slowed more than expected in October, raising hopes that the Federal Reserve will become less aggressive on interest rate hikes. Consumer prices rose 7.7% from a year earlier, down from 8.2% in September and clearly below the 8.0% consensus forecast.

 

Global Company:

The FTSE 100 closed 1.08% higher at 7 375, driven by gains in real estate, utilities and industrial shares.

The Hang Seng Index is higher by 7.47% to 16 493. Tencent rallied 7.3% to HK$248.20, while Alibaba jumped 7.2% to HK$67.55 and JD.com advanced 10.2% to HK$182.70.

In China, the Shanghai Composite is up 2.31% to 3 107.

US stock indices rallied after better-than-expected inflation numbers raised hopes that the Federal Reserve could slow the pace of rate hikes in the upcoming meetings.

The Dow Jones Industrial Average rose by 3.7% to 33 715, while the S&P 500 climbed 5.54% to 3 956.

Technology and growth stocks led the gains with Amazon, Meta, Nvidia and Alphabet surging between 8 – 14%.

Commodities:

Gold is up 0.2.91% to $1 760/oz, while Platinum is higher by 5.36% to $1045.50/oz.

Brent crude was 3.7% higher at $95.79 a barrel.

 

Currencies:

The rand traded at R17.36 against the US Dollar, R20.36 against British Pound and R17.77 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0019.