Daily Report 10 January 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.9% higher at the 78 343 level. The JSE hit an all-time high yesterday, mainly pushed up by tech stock Naspers Ltd, through its subsidiary Prosus that holds a 27% stake in Chinese tech and gaming giant Tencent. Naspers jumped 3.93%, while Prosus climbed 2.01%.

Mining companies were among the winners as well, over optimism around the reopening of the Chinese economy, with the mining index up 1.31% to 61 074 points.

 

SA Economy:

South Africa’s net foreign reserves rose to $53.827 billion in December from $53.391 billion in November.

Investors are now waiting for the release of the manufacturing numbers that will be out tomorrow for insights into the country’s economic performance.

 

​Global Economy:

The Eurozone Area seasonally adjusted unemployment rate stood at 6.5% in November 2022, unchanged from the previous month.

The UK Prime Minister, Rishi Sunak is facing growing pressure to negotiate with union leaders to end the wave of strikes.

Retail sales in the United Kingdom increased 6.5% on a like-for-like basis in December 2022 from a year ago.

US inflation will be in focus this week, with December CPI due out on Thursday. Headline CPI is expected to be remain unchanged, following a 0.1% m/m increase in November. Core CPI is expected to increase 0.3% m/m.

 

Global Company:

The FTSE 100 closed 0.33% higher at 7 724, led higher by real estate, materials, and energy shares.

AstraZeneca reported that they have agreed to buy CinCor Pharma for around $1.8 billion. The acquisition is expected to be finalised in the first quarter of 2023.

The Hang Seng Index is lower by 0.14% to 21 367.

Alibaba Group Holdings reported that co-founder Jack Ma has ceded control of the Ant Group, potentially paving the way to revive plans for an initial public offering by the fintech company.

In China, the Shanghai Composite is down 0.08% to 3 171, as investors turned cautious ahead of the Lunar New Year. Chinese people will get 7 days off from work from January 21st to January 27^th.

The Dow Jones Industrial Average closed 0.34% lower to 33 517, while the S&P 500 was down 0.08% to 3 892. Hawkish comments from two Fed officials brought down hopes that the Federal Reserve might dial back its aggressive monetary tightening.

Shares in Bed Bath & Beyond gained about 23% after the Wall Street Journal reported that the company was preparing to file for bankruptcy within weeks.

 

Commodities:

Gold is up 0.43% to $1 872/oz, while Platinum is lower by 2.06% to $1 086/oz.

Brent crude was 1.36% higher at $79.65 a barrel.

 

Currencies:

The rand traded at R16.92 against the US Dollar, R20.60 against British Pound and R18.18 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0740.