Daily Report 22 February 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.3% lower at the 78 811 level, tracking the negative sentiment across international markets. Sasol shares fell 5.3%.  Kumba Iron Ore lost 1.3% after reporting a 55% drop in its annual net profit.

Texton Property Fund said that profit for the fiscal first half increased amid lower property revenue. Profit attributable to shareholders for the six months ended 31 December 2022 was R57.8 million, compared with R49.4 million a year ago. EPS stood at 6.69 cents per share from a loss per share of 4.06 cents per share. Texton Property Fund opted not to declare an interim dividend.

In a trading update from Sibanye-Stillwater Ltd., the company said that they expect annual profit to fall by as much as 51%, impacted mainly by the three-month strike at its South African gold mines and floods at its U.S operations. The company expects 2022 headline earnings per share (HEPS) of between R6.19 ($0.3394) and R6.84 ($0.3751), down from R12.72 the previous year. Sibanye Stillwater shares were down 5% to R39.66 per share.

Sibanye-Stillwater Ltd. also said that they are launching an off-market takeover offer for New Century Resources Ltd. and will pay $83 million for the shares it does not already own. Sibanye-Stillwater is the largest shareholder in New Century Resources with an interest of 19.9%.

AngloGold Ashanti reported that headline earnings fell to $544 million compared with $612 million a year earlier, in line with its estimates, largely due to impairments at its Corrego do Sitio, Cuiaba and Serra Grande mines in Brazil. Revenue was $4.39 billion compared with $3.90 billion the previous year. AngloGold declared a final dividend of $0.18 per share, from $0.14.

 

SA Economy:

The composite leading business cycle indicator fell by 2.1% from a month earlier in December 2022, following a downwardly revised 0.08% in November. The largest negative contributors were due to a decrease in the number of residential building plans approved and a deceleration in the six-month smoothed growth rate of job advertisement space.

The Reserve Bank said that they have been preparing for a grid failure since 2015. Companies in the asset management, insurance and banking sector have been scenario planning how an Eskom grid collapse could disrupt everything from the execution and settlement of trades on the JSE to money transfers and salary payments.

Investors are waiting for the finance minister to present the 2023 budget in parliament later today.

 

Global Economy:

The S&P Global Germany Composite PMI rose to 51.1 in February 2023 from 49.9 the month before, beating market expectations of 50.4.

The S&P Global Eurozone Manufacturing PMI fell to 48.5 in February 2023 from 48.8 in January, missing estimates of 49.3.

 

Global Company:

The FTSE 100 closed 0.46% lower at 7 977, as miners fell after BHP posted lower-than-expected first-half profit and copper miner Antofagasta’s annual earnings fell short of market forecasts.

HSBC Holdings PLC reported a sharp rise in fourth-quarter profit, driven by higher interest rates.

The Hang Seng Index is lower by 0.26% to 20 475.

In China, the Shanghai Composite is down 0.57% to 3 287.

The Dow Jones Industrial Average closed 2.1% lower to 33 129, while the S&P 500 was down 2.05% to 3 997, as investors were worried after Treasury yields surged to their highest level since November.

Home Depot fell 7% after the home improvement retailer said that they have missed quarterly revenue estimates.

 

Commodities:

Gold is down 0.32% to $1 8 33/oz, while Platinum is higher by 2% to $942.70/oz.

Brent crude was 1.23% lower at $83.05 a barrel.

 

Currencies:

The rand traded at R18.25 against the US Dollar, R22.09 against British Pound and R19.45 against the Euro.

The Euro is slightly weaker against the US Dollar to trade at $1.0656.