Daily Report 11 January 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.4% lower at the 78 000 level, down from record highs touched the day before. Tech stocks and financials were slightly lower as investors awaits the U.S. inflation data due out tomorrow.

 

SA Economy:

Manufacturing production fell by 1.1% from a year earlier in November 2022, following a 1% rise in the prior month and compared with market forecasts of a 2.3% decline. The decline in the country’s factory activity was mainly due to the sustained and intensive power cuts.

President Cyril Ramaphosa played down suggestions that an amendment to the South African Reserve Bank’s mandate is imminent while confirming that a possible change remains under discussion. Gwede Mantashe, chairman of the governing ANC said last week that it wanted to expand the SARB’s mandate to do more to support the economy. The bank’s primary focus is currently to protect the value of the currency in the interest of balanced and sustainable economic growth.

 

Global Economy:

The U.S. small-business confidence slid to a six-month low in December. The National Federation of Independent Business (NFIB) said its Small Business Optimism Index fell 2.1 points to 89.8.

The World Bank cut its global growth forecasts. The bank said that global GDP will probably increase 1.7% this year, about half the pace it had forecasted in June. The bank also cut its growth estimates for 2024, citing persistent inflation and higher interest rates are among the key reasons.

 

Global Company:

The FTSE 100 closed 0.45% lower at 7 694.

The Hang Seng Index is higher by 1.53% to 21 661, with the top performers being healthcare, tech, energy, real estate, and financials. Alibaba Group was up 4.2% and Tencent gaining 4.08%.

In China, the Shanghai Composite is up 0.24% to 3 178.

The Dow Jones Industrial Average closed 0.55% higher to 33 704, while the S&P 500 was up 0.69% to 3 919.

Coinbase shares gained almost 13% after the cryptocurrency exchange said that will be reducing its workforce by about 950 employees as part of a restructuring plan.

Bed Bath & Beyond Inc reported a quarterly loss of about $393 million.

 

Commodities:

Gold is up 0.52% to $1 798/oz, while Platinum is higher by 2.06% to $1 049/oz.

Brent crude was 0.07% lower at $76.10 a barrel.

 

Currencies:

The rand traded at R16.99 against the US Dollar, R20.67 against British Pound and R18.27 against the Euro.

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