Financial News 13th March 2023

Market Overview
The FTSE/JSE All Share closed at 76 454.36 last week, decreasing by 2.26%. The health care and industrial sectors were the best performing, increasing by 4.00% and 0.80% respectively. The technology and oil & gas sectors were the main detractors, decreasing by 6.47% and 5.46% during the week.

Looking at the MSCI indices, developed markets decreased by 3.58% during the previous week while emerging markets decreased by 3.29% over the same period.

SA economy shrinks in the dark
The South African GDP decreased by 1.3% during the three months to December of 2022, compared to market expectations of a 0.4% decline. It was the biggest contraction since the third quarter of 2021, primarily due to a sharp increase in power blackouts in recent months. Seven out of ten activities recorded declines with finance and trade being the biggest drags on growth.

During the calendar year of 2022, the economy expanded by 2%, below expectations of 2.3%, following a growth of 4.9% in 2021.

US job market keeps soaring
The US created 311 000 jobs in February 2023, well above market forecasts of 205 000. The data implies that the labour market continues to remain robust, with the US economy adding an average of 343 000 jobs per month over the prior 6 months. The labour force participation rate inched higher to 62.5%, the highest since March 2020.

The above commentary was kindly supplied by PPS Investments.

South African rand strengthens as markets bet on less-hawkish Fed stance
JOHANNESBURG, March 13 (Reuters) – The South African rand firmed in early trade on Monday, as the dollar fell sharply on expectations that the largest U.S. bank failure since the 2008 financial crisis would prompt the Federal Reserve to slow the pace of its interest rate hikes. Read the full article published on here>

SA’s current account switches to deficit, exposing the rand’s vulnerability
The widening deficit, a narrowing in the trade surplus and a deterioration in the country’s terms of trade are helping to erode a key base of support for South Africa’s currency. Read the full article published in the Daily Maverick here>

Investors flooding out of South Africa
International investors have had enough of South Africa and are taking large sums of their money out of the embattled country. Read the full City Press article published by here>

Planning Points: Women need to tread a different path toward wealth creation
Over the past few decades, there has been a rise in the number of women entrepreneurs who have established successful businesses, are creating employment and wealth for themselves as well as building their legacies. Read the full article published on IOL personal finance here>

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