Daily Report 12 January 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.7% higher at the 78 522 level.

Tharisa PLC said that higher rainfall at one of its mines hit production volumes in its first quarter to end-December, but prices remain strong and it’s maintaining its full-year guidance. The total reef mined fell about 17.7% to 1.08 million tonnes from the prior three months. Tharisa’s shares were down almost 1% to close at R20.50 per share.

Telkom advised shareholders that they have terminated discussions in relation to Rain’s proposal of the potential acquisition of Rain for newly issued shares in Telkom, the parties have decided that a suitable transaction is not possible at this time.

Steinhoff reported that the company withdrew its plans to list the US-based, Mattress Firm. The listing of Mattress firm was planned to raise capital but got delayed in 2022 as global markets fell in the wake of interest-rate hikes.

 

SA Economy:

The BankservAfrica Economic Transactions Index (BETI) rose to 132.1 points in December, increasing 1.7% on an annual basis and up from 130.3 in November. Economic activity improved after six consecutive monthly declines as load-shedding, interest rates and elevated inflation threatened the outlook for 2023.

 

​Global Economy:

China’s annual consumer inflation rate accelerated in December, driven by rising food prices. The Consumer Price Index (CPI) in December was 1.8% higher than a year earlier, rising faster than the 1.6% annual gain seen in November, according to data from the National Bureau of Statistics (NBS).

China’s annual Producer Price Index (PPI) slowed in December to 0.7% from the 1.3% seen in the previous month, as demand deteriorated further on the rising number of COVID cases.

Britain’s Public and Commercial Services union said that 100 000 members across 124 government departments would take strike action on the 1^st of February in dispute over pay, pensions, and job security.

 

Global Company:

The FTSE 100 closed 0.39% higher 7724, as mining stocks gained on firmer metals prices. Glencore and Rio Tinto gained more than 1% each.

The Hang Seng Index is lower by 0.12% to 21 410, as investors wait for more clarity after the release of US CPI data later today.

In China, the Shanghai Composite is trading flat at 3 159.

The Dow Jones Industrial Average closed 0.79% higher to 33 973, while the S&P 500 was up 1.27% to 3 969.

Bed Bath & Beyond shares gained more than 68%, on speculation that the company could be a potential acquisition target.

US banks kick off the fourth quarter earnings season tomorrow, with Bank of America, Citi, JPMorgan and Wells Fargo among the high-profile reporters.

 

Commodities:

Gold is up 0.16% to $1 874/oz, while Platinum is lower by 1.16% to $1 073/oz.

Brent crude was 3.11% higher at $82.67 a barrel.

 

Currencies:

The rand traded at R16.92 against the US Dollar, R20.58 against British Pound and R18.22 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0771.