Daily Report 18 January 2024

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.8% lower at the 71 693 level.
Mining stocks led the JSE lower after the release of Chinese GDP data that pointed to a weak recovery. Market sentiment has also been weakened by mounting concerns over the global interest rate outlook and increased geopolitical tensions.
In a trading update from Richemont, the company reported sales growth of 8% for its third quarter and 11% for its nine months ended 31 December 2023 at constant exchange rates, with increases recorded in almost all regions. The group’s jewellery divisions, Buccellati, Cartier and Van Cleef & Arpels generated the strongest sales increase (+12%). Richemont’s results for the financial year ending 31 March 2024 will be announced on Friday, 17 May 2024.

SA Economy:

Retail sales shrank by 0.9% from a year earlier in November 2023, from a decline of 2.3% in the previous month. The decline in retail activity was mainly due to reduced sales of hardware, paint, glass, textiles, clothing, footwear and leather goods. The data indicates that the consumer remains under strain, with the cost-of-living pressures weighing on discretionary income.

Global Economy:

The annual inflation rate in the UK rose to 4% in December 2023 from a two-year low of 3.9% in November, and above forecasts of 3.8%. The biggest upward contribution coming from the prices of alcohol and tobacco.
Eurozone consumer inflation increased to 2.9% in December, from 2.4% the prior month, reversing six months of consecutive falls.
Retail sales in the US rose 0.6% month-over-month in December 2023, following a 0.3% rise in November and beating market forecasts of 0.4%. It is the biggest increase in three months, led by sales of vehicles (1.2%). Excluding vehicles, retail sales increased 0.4%.
Manufacturing production in the United States went up by 0.1% from a month earlier in December of 2023, beating market expectations of no growth.
Industrial production in the US increased by 0.1% from the previous month in December of 2023, beating market expectations of no growth.

Global Company:

The FTSE 100 closed 1.5% lower at 7 446. Mining shares fell 2.5%, and energy companies were down by more than 1%.
The Hang Seng Index is trading 0.46% higher at 15 348.
In China, the Shanghai Composite is down 1.42% to 2 793. The Shanghai Composite is trading near a four-year, following the weaker-than-expected growth data.
The Dow Jones Industrial Average closed 0.25% lower to 37 266, while the S&P 500 closed 0.56% lower at 4 739.
Tesla shares was down 1.2% after the company said that they were lowering the prices of its Model Y cars in Germany. Apple shares lost 0.5% on reports that it was banned from selling watches with blood oxygen sensors.

Commodities:

Gold is trading lower by 0.68% at $2 007/oz, while Platinum is lower by 0.52% to $891/oz.
Brent crude was 0.46% higher at $77.72 a barrel.

Currencies:

The rand traded at R19.03 against the US Dollar, R24.13 against British Pound and R20.73 against the Euro.
The Euro is slightly firmer against the US Dollar to trade at $1.0892.