Daily Report 18 November 2022

SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.56% lower at the 72 195 level, dragged lower mainly by mining and big industrial shares. Overall, the JSE ALL-Share index is still up about 8% month to date.
Life Healthcare’s shares fell over 7%, after the group reported a fall in profit and a dispute with the South African Revenue Service that has prompted it to set aside R199 million.
Investec reported that profit attributable to shareholders rose 91.5% to £478.12m in the six months to end-September 2022, up from £249.63m in the corresponding period the prior year. Headline earnings per share rose 29.6% to 32 pence, up from 24.7 pence the previous half-year. Investec’s strong results showing in its financial first half allowed its board to propose an interim dividend of 13.5 pence a share, a 22.7% increase on the prior half-year payout of 11 pence.
BHP Group Ltd. raised its offer to buy Australian copper-mining company OZ Minerals Ltd. OZ Minerals said that it had received a proposal from BHP to buy the company for 28.25 Australian dollars ($18.90) a share, up from 25 Australian dollars a share previously.

SA Economy:
Credit ratings agencies Moody’s and S&P are scheduled to give an assessment of SA’s credit rating later today.
Public servants will go on strike action next week Tuesday, 22nd of November 2022. The main march will be to the National Treasury’s offices in Pretoria. The government was given a seven-day ultimatum to respond to the calls for a 10% increase across the board, this was not met. The Public sector workers said that the open-ended industrial action will continue until government gives in.

Global Economy:
Hong Kong’s unemployment rate eased to 3.8% in the August-October quarter, as economic activities revive in an easing COVID situation. In the July-September period, the unemployment rate stood at 3.9%.
The Eurozone consumer price inflation was revised slightly down to 10.6% year-on-year in October 2022 from a preliminary estimate of 10.7%.
The UK Chancellor, Jeremy Hunt delivered the Autumn budget statement, aiming to fix the country’s public finances and restore its economic credibility. The finance minister proposed a £30 billion in spending cuts and £25 billion in tax increases. The announced tax changes came in line with market expectations, with main measures including cutting the threshold for the top rate of income tax of 45% to £125,000 and freezing allowances and thresholds for income tax, national insurance, and inheritance tax for a further two years. The budget aims to slash the dividend allowance to £1 000 from £2 000 next year, and then to £500 in April 2024.
The annual inflation rate in Japan climbed to 3.7% in October 2022 from 3.0% a month earlier. This was the highest reading since January 1991.

Global Company:
The FTSE 100 closed flat at 7 346, as investors digested the government’s fiscal plan.
The Hang Seng Index is lower by 0.44% to 17 969. Tech companies in Hong Kong were lifted by China’s gaming regulator granting publishing licences for 70 new games.
Alibaba Group Holding reported Q3 earnings. Alibaba’s third quarter earnings beat analysts’ forecasts, but revenue fell short of analysts’ expectations. The company said that revenue grew 3% to 207.18 billion yuan ($28.96 billion) in the three months ended 30 September 2022.
China’s gaming regulator granted its first gaming licences to Tencent in almost a year and a half.
In China, the Shanghai Composite is down 0.2% to 3 108.
The Dow Jones Industrial Average closed flat at 33 546, while the S&P 500 was lower by 0.31% to 3 946.
Nvidia reported a sharp decline in quarterly sales, driven mainly by declining consumer demand for its videogaming chips.
Cisco shares added almost 5% after topping earnings and revenue expectations.

Commodities:
Gold is flat at $1 763/oz, while Platinum is lower by 2.33% to $987.70/oz.
Brent crude was 1.93% lower at $90 a barrel.

Currencies:
The rand traded at R17.38 against the US Dollar, R20.64 against British Pound and R18.00 against the Euro.
The Euro is slightly firmer against the US Dollar to trade at $1.0372.