Financial News 11 September 2023

Market overview
The FTSE/JSE All Share closed last week at 73 652.69, decreasing by 1.52%. The oil & gas and consumer staples sectors increased by 1.34% and 0.73% respectively during the week. The consumer discretionary and basic materials sectors decreased by 4.15% and 3.09% during the same period.
Looking at the MSCI indices, developed markets decreased by 1.33% during the previous week while emerging markets decreased by 1.17% over the same period.

SA GDP growth surprises
The South African economy grew by 1.6% year-on-year in the second quarter of 2023, up from a 0.2% rise in the previous period and above market estimates of a 1.1% increase. It was the strongest expansion since the third quarter of 2022, partly attributed to the decrease in power outages and a reduced dependency on Eskom for electricity demand in sectors like manufacturing and mining.

Business confidence increases in SA
TThe RMB/BER business confidence index in South Africa increased to 33 in Q3, up from a near three-year low of 27 in the previous period. However, it remains in negative territory relative to its historic average with persistent challenges like high interest rates, the resulting strain on consumers and social unrest continue to exert pressure on businesses.

Thanks to PPS Investments for the weekly Market Overview.

US dollar starts week under pressure as China, Japan defenses bite
The dollar’s record hot streak came under threat Monday as Asia’s biggest central banks took aim in different ways at the recent rally in the greenback. Read the full Moneyweb article here>

Equity markets, the rand and fuel prices remain under pressure
South African equity prices continued their negative trend of August during the first two weeks of September. Most share indices on the JSE ended last week negatively. Read the full IOL article here>

Rand jumps ahead of manufacturing data, US CPI
The rand jumped against a weaker dollar early on Monday as investors awaited local manufacturing data later in the day and US consumer price index (CPI) data on Wednesday. Read the full Moneyweb article here>

Gold inches up on weaker dollar as investors eye US inflation data
The bullion should be supported above the $1,900 level if the greenback continues to decline on bets that the Fed are done with tightening, analyst says. Read the full Business Day article here>

Big storm brewing over Treasury’s budget cuts
Some of South Africa’s biggest trade unions have called for strikes over the proposed budget cuts by the National Treasury to be announced in the Medium-Term Budget Policy Statement (MTBPS), which unions say would be detrimental to workers and the poor. Read the full Businesstech article here>

Need more information? Chat with us