Daily Report 17 January 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.2% lower at the 79 168 level, with slight gains in financial shares and some weakness in the tech and resource counters.

The South African arm of British American Tobacco (BAT) said that they are looking to restructure the business, a process that may affect about 200 jobs, following a decline in its cigarette sales in the country. The cigarette maker said the drop in cigarette sales in South Africa was mostly due to the growth of the illicit cigarette trade.

MTN shares closed 4% lower at R 130.25 per share as the result of the Ghana tax dispute story. MTN said that Ghana’s Revenue Authority had issued a temporary withdrawal of the notice of the assessment on 13 January, providing them a 21-day timeline to allow for further engagement.

 

SA Economy:

Eskom said that scheduled power cuts will be shortened from today with the return of 14 generators to service this week.

Mining output and retail sales for November due later today will be closely watched for insights into the country’s economy.

 

​Global Economy:

India’s trade deficit widened to $23.76 billion in December 2022 from $21.68 billion in the same month last year. Exports fell 12.2% from a year earlier to USD 34.48 billion, amid weakening global demand on the back of rising interest rates and high inflation. Imports were down 3.5% to $58.24 billion.

China’s economy expanded 2.9% year-on-year in the fourth quarter, slowing from a 3.9% growth in the previous quarter but exceeding forecasts for a 1.8% rise. The country’s latest industrial production, retail sales and fixed asset investment data also came in better than expected.

The annual inflation rate in Nigeria eased to 21.34% in December 2022, down slightly from a 17-year peak of 21.47% in the prior month.

Fears of a global recession were heightened by a World Economic Forum survey that showed that two-thirds of the economists polled expected a recession this year.

 

Global Company:

The FTSE 100 closed 0.2% higher at 7 860, as optimism surrounding China’s reopening and lower energy costs have continued to support the recent rally.

The Financial Times reported that Credit Suisse is preparing to cut more than 10% its investment bankers in Europe this year.

Asian markets retreated amid renewed concerns over a global recession.

The Hang Seng Index is lower by 1.29% to 21 467.

In China, the Shanghai Composite is down 0.4% to 3 214.

Alibaba said that they are allowing shoppers in Europe to pay for purchases on its international e-commerce platform only after receiving their merchandise.

US markets were closed yesterday for the Martin Luther King, Jr. Day holiday.

 

Commodities:

Gold is down 0.48% to $1 909/oz, while Platinum is lower by 0.24% to $1 061/oz.

Brent crude was 0.59% lower at $84.78 a barrel.

 

Currencies:

The rand traded at R17.08 against the US Dollar, R20.80 against British Pound and R18.46 against the Euro.

The Euro is slightly weaker against the US Dollar to trade at $1.0823.