Daily Report 15 March 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.7% lower at the 75 009 level, resources and financials were among the worst performers, while tech stock Naspers was up 1.2% and Prosus gaining 1%.

Attacq Limited said that profit for the fiscal first half declined. Attacq’s  distributable income rose 27.2% to R253.2 million, or 35.9c per share, as a result of higher rental income from newly completed developments and the existing portfolio. Profit for the year dropped 71.8% to R198.7 million from R703.8 million a year ago. EPS stood at 27.6 cents, down from 98.4 cents. The board declared a dividend of 29 cents per share.

In a trading update from Transaction Capital, the company said that it expected core earnings per share from continuing operations for the half-year 2023, to decrease by no more than 50% when compared to the prior period. Transaction Capital highlighted that its taxi business was facing structural problems as taxi owners struggle to keep up with monthly payments due to high fuel prices and rising interest rates.

 

SA Economy:

Mining production in fell by 1.9% year-on-year in January 2023, following an upwardly revised 3.6% decline in the prior month and compared with market estimates of a 2.65% drop. Output fell much less for diamonds (-15.5% vs -37% in December), while it rebounded for iron ore (12.1% vs -15.4%) and gold (3.7% vs -3.3%).

Manufacturing production fell by 3.7% from a year earlier in January 2023, following a downwardly revised 4.5% fall in the prior month and compared to market forecasts of a 5.1% drop.

 

Global Economy:

The annual inflation rate in the US reached 6% in February 2023 from 6.4%  The reading came in line with market forecasts. However, it remains well above the Federal Reserve’s targeted rate of 2%.

Moody’s Investor Services cut its outlook on U.S. banking system to negative, citing a ”‘rapidly deteriorating operating environment” despite regulators’ efforts to prop up the industry.

China’s retail trade expanded 3.5%, matching market consensus while shifting away from the 1.8% fall in December.

China’s unemployment rate edged up to 5.6% in February from 5.5% in the previous three months.

China’s industrial production advanced 2.4% year-on-year in January-February 2023.

 

Global Company:

The FTSE 100 closed 1.16% higher at 7 637.

HSBC gained 1.5% after the bank said that it plans to inject £2 billion of liquidity into the UK unit of SVB.

The Hang Seng Index is higher by 1.51% to 19 556, with financials, tech, and consumers all gaining over 1%.

In China, the Shanghai Composite is up 0.57% to 3 263.

The Dow Jones Industrial Average closed 1.05% higher to 32 155, while the S&P 500 was up 1.62% to 3 919.

Bank shares regained some ground after several volatile sessions, with First Republic Bank up 27%. Facebook owner Meta jumped 7.2% after the company said that they would cut 10 000 jobs.

 

Commodities:

Gold is down 0.29% to $1 906/oz, while Platinum is lower by 0.76% to $994.90/oz.

Brent crude was 0.87% higher at $78.33 a barrel.

 

Currencies:

The rand traded at R18.14 against the US Dollar, R22.04 against British Pound and R19.47 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0733.