Daily Report 28 March 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.8% higher at the 75 284 level, in line with  global markets.

Thungela Resources fell around 3% after the company said that given the current situation at Transnet, the company cannot issue any guidance for 2024.

Murray & Roberts shares gained over 7% after the company said that they agreed to sell their 65% interest in loss-making Australian mining technology company Insig Technologies to AvidSys Group. The Australian mining company will pay AU$1 (R12.17) for the business and undertake its AU$7 million of liabilities.

Advtech Ltd reported results for the year ended 31 December 2022. The company said that headline earnings per share (HEPS) increased by 20% to 146.5 cents per share from 121.6 cents per share in prior corresponding year. Revenue increased by 18% to R6 961 million from R5 917 million. Advtech declared a dividend of 60 cents per share.

In a trading update from Datatec Ltd, the company said that they expect revenue for the fiscal year ended 28 February to grow 13% to $5.16 billion for fiscal 2023, compared with $4.55 billion in fiscal 2022. The double-digit increase in revenue was boosted mainly by the of easing supply-chain disruptions and robust demand for networking and cyber security. The full-year results are scheduled for release on the 23^rd of May.

 

SA Economy:

The Reserve Bank is due to update its GDP forecast when it releases the repo rate decision of the monetary policy committee on Thursday. Its January forecast for 2023 was 0.3%. This comes after the IMF revised its GDP forecast for 2023 from the January forecast of 1.2% to 0.1% because of the significant increase in the intensity of power cuts as well as weakened commodity prices and the external environment.

 

Global Economy:

Hong Kong’s trade deficit widened to $45.4 billion in February 2023 from $32.1 billion in the same month last year. Exports dropped by 8.8% to $286.2 billion and  imports also falling by 4.1% to $331.6 billion.

Bloomberg News reported that U.S. authorities were in the early stage of discussions about expanding emergency lending facilities for banks.

The Ifo Business Climate indicator for Germany increased to 93.3 in March 2023.

 

Global Company:

European shares closed higher, led by gains in bank shares as investors welcomed measures taken by authorities and regulators to ease fears of a crisis in the global banking sector.

The FTSE 100 closed 0.89% higher at 7 471. Barclays and BP were among the top gainers, up 2.5% and 2%, respectively.

The Hang Seng Index is higher by 0.69% to 19 703. Tech and financial share led the gains as investors welcomed the news that First Citizens BankShares agreed to buy Silicon Valley Bank.

In China, the Shanghai Composite is marginally higher at 3 254.

The Dow Jones Industrial Average closed 0.6% higher to 32 432, while the S&P 500 was up 0.16% to 3 977. Technology shares came under pressure after a jump in Treasury yields, with the benchmark 10-year yield rising back above 3.5%.

 

Commodities:

Gold is down 1.52% to $1 952/oz, while Platinum is lower by 0.7% to $975.20/oz.

Brent crude was 4.01% higher at $78.12 a barrel.

 

Currencies:

The rand traded at R18.24 against the US Dollar, R22.47 against British Pound and R19.72 against the Euro.

The Euro is slightly weaker against the US Dollar to trade at $1.0815.