Daily Report 27 February 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 2.7% lower at the 76 938 level.

In a trading update from Old Mutual, the company said that it expects a 20% rise in earnings for the year ended 31 December 2022 to between R6.66 billion and R7.98 billion, or basic EPS of between R1.51 and R1.81. The headline earnings are also expected to jump by 20% to between R7.21 billion and R8.64 billion, or R1.638 to R1.957 per share. Full-year results to be published on the 14^th of March.

In a trading update from Murray & Roberts, the company said that it expects to report a headline loss per share of between R3.23 – R 3.21 per share. Murray & Roberts said the group’s order book as of 31 December 2022, was R16.1 billion and the project pipeline remains strong.

City Lodge Hotels released results for the half year ended 31 December 2022. The company reported headline earnings per share of 17cents compared to a loss of 5.9 cents the previous year. Revenue almost doubled to R847.6 million (1H22: R436 million). City Lodge declared an interim dividend of 5 cents per share.

 

SA Economy:

On Friday, the Financial Action Task Force (FATF), the Paris-based body that sets standards for combating illicit financial flows, placed South Africa on its “Grey List” and said that SA will now face increased monitoring by the FATF on concern that they are at higher risk for money laundering and terrorist financing.

 

Global Economy:

The German economy shrank 0.4% on quarter in fourth quarter of 2022, much worse than initial estimates of a 0.2% decline, and marking the first GDP contraction in nearly two years.

Reports on Friday suggested that Chinese President Xi Jinping is seeking to overhaul the country’s financial system that would give him more control over the economy.

U.K. consumer confidence rebounded in February, with the GfK’s consumer confidence index climbing seven points to minus 38.

Reuters reported that Russia plans to cut up to 25% of oil exports from its western ports in March, that is more than the 500 000 barrel per day supply cut initially announced.

US inflation data strengthened expectations that the Federal Reserve will need to continue raising interest rates. The Personal Consumption Expenditures (PCE) price index, the Fed’s preferred measure of inflation, accelerated to 4.7% in January, well above market expectations.

 

Global Company:

The FTSE 100 closed 0.37% lower at 7 878.

BP and Shell gained more than 1% as the price of Brent crude rose.

Asian markets are trading lower, following a selloff on US markets.

The Hang Seng Index is lower by 0.64% to 19 884.

In China, the Shanghai Composite is down 0.32% to 3 256.

The Dow Jones Industrial Average closed 1.03% lower to 32 816, while the S&P 500 was down 1.06% to 3 970. For the week, the Dow dropped almost 3% and the S&P 500 lost 2.7%.

Boeing shares fell 4.2% after the company said it has temporarily halted deliveries of its 787 Dreamliner planes.

 

Commodities:

Gold is down 0.51% to $1 808/oz, while Platinum is lower by 4.17% to $902/oz.

Brent crude was 1.14% higher at $83.16 a barrel.

 

Currencies:

The rand traded at R18.44 against the US Dollar, R22.03 against British Pound and R19.44 against the Euro.

The Euro is weaker against the US Dollar to trade at $1.0546.