Daily Report 20 February 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.2% lower at the 79 272 level.

In a trading update from ABSA Group, the company said that they expect headline earnings per share to rise in a range of 10% and 15%. The revenue growth is expected on the back of a significant increase in non-interest income amid a recovery in life insurance revenue. Shares of the company fell marginally on Friday. Absa will release its 2022 annual results on 13^th of March.

In a trading update from Aveng Ltd for the six months period ended 31 December 2022, the company said that expects revenue to grow by 16% and sees headline earnings per share between 64-59 cents.

Anglo American Platinum Ltd. said in its 2022 annual results that revenue for the year was R164.1 billion ($9.09 billion) compared with R214.6 billion a year prior and adjusted EBITDA was R73.90 billion vs R74.28 billion. The company declared a dividend of R115 a share compared with R183 the previous year.

 

 SA Economy:

Public Servants Association (PSA) said they want an above-inflation wage increase of 12.5% for its more than 235 000 members because they have not received real increases over the past four years.

President Cyril Ramaphosa has told the African National Congress’s national working committee that he intends to announce a cabinet reshuffle after the budget speech.

The Minister of Finance, Enoch Godongwana will table the 2023 National Budget Speech on Wednesday, 22^nd of February.

 

Global Economy:

The People’s Bank of China (PBoC) kept its key lending rates unchanged. The one-year loan prime rate (LPR), which uses for corporate and household loans, was kept unchanged at 3.65%; while the five-year rate, a reference for mortgages, was maintained at 4.3%.

U.K. retail sales volumes rose 0.5% in January, beating forecasts, suggesting consumer spending entered the year on a stronger footing even as high inflation continued to put pressure on purchasing power.

The annual producer inflation in Germany dropped to 17.8% in January 2023 from 21.6% in December 2022, compared with market forecasts of 16.4%.

 

Global Company:

The FTSE 100 closed 0.1% lower at 8 004, pulling back from its record closing high the previous day.

Natwest Group and Lloyds Banking Group were down roughly 9% and 5%, respectively.

The Hang Seng Index is higher by 1.49% to 21 975.

In China, the Shanghai Composite is up 1.65% to 3 278, as investors reacted to the latest central bank policy decision.

US shares closed mixed after data showed that supplier prices increased by more than expected last month.

The Dow Jones Industrial Average closed 0.38% higher to 33 826, while the S&P 500 was down 0.28% to 4 079. For the week, the Dow lost 0.6%, while the S&P 500 was down 0.3%.

US markets will be closed today for Presidents’ Day.

 

Commodities:

Gold is down 0.09% to $1 840/oz, while Platinum is lower by 1.05% to $915.50/oz.

Brent crude was 2.58% lower at $83.00 a barrel.

 

Currencies:

The rand traded at R18.05 against the US Dollar, R21.71 against British Pound and R19.30 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0691.