Daily Report 20 January 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.5% lower at the 74 548 level on renewed worries about global economic growth. Woolworths was up almost 5% after the retailer raised its profit growth forecast.

BHP Group Ltd said in a second quarter production update that its metallurgical coal production increased by 10%, while copper output rose 16% and iron-ore output climbed 1%, while nickel and thermal-coal output weakened.

Over the past month, SPAR and the external auditors have conducted investigations in respect of the fictitious and fraudulent loans. Spar said that only three of its loans offered to retailers five years ago constituted irregular accounting, and that they were “isolated”. SPAR’s auditors are satisfied that this was an isolated matter and is no longer taking place, and adequate steps have been taken for the prevention of any loss as a result thereof.

In a trading update from Mr Price for the 13 weeks ended 31 December 2022, the company said that the group recorded growth in retail sales and other income of 34.0% to R12.4bn. South African retail sales grew 36.8% to R11.2bn while non-South African corporate-owned store sales increased 32.5% to R816m.

 

SA Economy:

The SA Chamber of Commerce and Industry (SACCI) published their results of a survey measuring business sentiment on prevailing trade conditions and said that businesses expect input cost pressures to persist over the next six months aggravated by looming electricity tariff increases and the cost of alternative energy sources due to the persistent load-shedding.

The value of recorded building plans passed in the larger municipalities rose by 8.7% from a year ago to R11.1 million in November 2022.

 

​Global Economy:

Hong Kong’s unemployment rate fell to 3.5% in the three months ending December 2022, from 3.7% since the previous September-November reading.

Speaking at the World Economic Forum in Davos, China’s economic official, Vice Premier Liu He said that China’s economy would likely rebound to its pre-pandemic growth this year as Covid infections had passed their peak and consumption activities had returned to normal.

The People’s Bank of China 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%.

 

Global Company:

The FTSE 100 closed 1.08% lower at 7 747, the index was dragged lower by energy shares. Mining shares also slipped on lower copper prices.

Chinese markets were generally stable on the final session before the Lunar New Year holiday.

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

In China, the Shanghai Composite is up 0.69% to 3 262.

The Dow Jones Industrial Average closed 0.76% lower to 33 044, while the S&P 500 was down 0.77% to 3 898.

Netflix Inc. reported fourth quarter EPS of $0.12 versus $0.59 expected, while revenues came in at $7.85 billion versus $7.84B expected. Netflix said co-founder Reed Hastings has stepped down as co-chief executive and will become executive chairman.

 

Commodities:

Gold is up 0.92% to $1 922/oz, while Platinum is lower by 0.24% to $1 032/oz.

Brent crude is 1.37% higher at $86.16 a barrel.

 

Currencies:

The rand traded at R17.26 against the US Dollar, R21.37 against British Pound and R18.71 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0834.