Daily Report 24 October 2022

SA Company News:
The Johannesburg Stock Exchange All-Share Index fell by 0.4% to the 65 564 level, with all sectors trading in the red, led by industrials, financials, and tech shares.
Orion Minerals said that they have reached an agreement with the Industrial Development Corporation (IDC) for a R250m secured loan facility that will be used to fund mining works and pre-development activities at the mine.
Spear Reit said that its portfolio remains defensive, as rental collections reached 97.56% with more than 62 000m2 of space renewed or let at a negative reversion of 4.08%. Occupancy levels were above 93% for the six months to end-August 2022. Headline earnings per share decreased by 10.51% to 38.57 cents per share, from 43.10 cents. Distributable income per share increased 6.09% year on year to 41.26c and dividend per share by 12.33% to 37.14c.
In a trading update from Royal Bafokeng Platinum, the company reported a double-digit production fall for its third quarter to end-September, hit by loadshedding and safety concerns, and as a result has cut its full-year guidance. Total tonnes hoisted fell 10.2% to 1.203 million tonnes to end-September and output of the basket of four metals it produces fell 6.2% to 119 100 ounces. RBPlat has reduced its full-year production guidance to between 455 000 ounces and 470 000 ounces, a cut of more than 6%.
In a trading update from Dis-chem for the company it advised that for the six-months ended 31 August 2022, the company is expecting to announce earnings per share and headline earnings per share of between 69.5c and 70.8c. This is an increase of between 43.6% and 45.9% compared to the published EPS number of 48.4c for the six-months ended 31 August 2021, and an increase of between 43.1% and 45.4% compared to the published HEPS number of 48.7c for the six-months ended 31 August 2021.

SA Economy:
The focus this week will be on finance minister, Enoch Godongwana when he tables the medium-term budget policy statement in parliament on Wednesday. The policy statement is projected to show a revenue overrun, with substantial tax receipts that accrued earlier in the year aiding further fiscal consolidation. An improvement in the fiscal ratios is expected, underpinned by enhanced nominal GDP readings on elevated inflation, while on the expenditure side, higher-than-budgeted public sector wages, the bailout of state-owned companies and the extended social relief of distress (SRD) grants will continue to put additional pressure on government spending. The minister is also expected to provide details on how Eskom’s debt will be handled.

Global Economy:
The annual inflation rate in Hong Kong increased to 4.5% in September 2022 from 1.9% in the previous period. It was the highest reading since March of 2015.
The Chinese economy rose 3.9% quarter on quarter in the three months to end September 2022, beating market forecasts of 3.5%.
China’s retail trade rose by 2.5% year-on-year in September 2022, missing market estimates of 3.3%.
The European Central Bank is likely to opt for another 75-basis-point interest-rate increase at the meeting on the 27th of October.
The consumer confidence indicator in the Euro Area edged up by 1.2 points to -27.6 in October 2022 from September’s record low of -28.8, beating market expectations of -30.
According to the Wall Street Journal, some Federal Reserve officials were growing uneasy with the current pace of rate increases and are starting to worry about the risks of overtightening.

Global Company:
The FTSE 100 closed 0.37% higher at 7 169. Glencore led gains, up more than 3%, followed by Anglo American and Antofagasta, both gaining over 2%.
The Hang Seng Index fell 5.44% to 15 342.
In China, the Shanghai Composite fell 1.4% to 2 996.
The Dow Jones Industrial Average rose by 2.47% to 31 082, while the S&P 500 climbed 2.37% to 3 752 as treasury yields fell on Friday, that appeared to limit losses for shares.
Elon Musk could sell an additional $5 billion to $10 billion in Tesla stock to fund the Twitter deal.
The Chinese economy expanded 3.9% in the three months to end September 2022, beating market forecasts of 3.5%.

Commodities:
Gold is up 2.03% to $1 654/oz, while Platinum is higher by 3.27% to $940/oz.
Brent crude was 2.11% lower at $90.41 a barrel.

Currencies:
The rand traded at R18.18 against the US Dollar, R20.66 against British Pound and R17.90 against the Euro.
The Euro is slightly firmer against the US Dollar to trade at $0.9857.