Financial News 14th August 2023

Market overview
The FTSE/JSE All Share closed last week at 76 974.25, increasing by only 0.02%. The oil & gas and health care sectors increased by 6.51% and 1.86% respectively during the week. The technology and consumer discretionary sectors decreased by 2.91% and 1.11% during the same period. 
Looking at the MSCI indices, developed markets decreased by 0.42% during the previous week, while emerging markets decreased by 1.94% over the same period

SA manufacturing surprises
South African manufacturing production increased by 5.5% year-on-year in June of 2023, above market estimates of a 3% increase. It marks the third consecutive month of growth in industrial activity and the strongest since June 2021. The increase is partly due to low base effects as manufacturing decreased drastically from October 2022 to March 2023 due to loadshedding. 
The largest contributions were made by motor vehicles, parts and accessories and other transport equipment, basic iron and steel, non-ferrous metal products, metal products and machinery and food and beverages. 

Our thanks to PPS Investments for the market overview.

South African rand starts week on back foot on China, Fed worries
The rand was under pressure in early trade on Monday, hampered at the start of the week by worries over the health of China’s economy and the potential for another U.S. interest rate hike. Read the full Reuters article here>

Oil slides as seven-week rally falters on firmer dollar and Chinese economy
Prices slip as the greenback index extends gains after an increase in US producer prices in July lifted Treasury yields. Read the full Business Day article here>

SA prepares to put its best foot forward at next week’s BRICS summit
South Africa will aim to put its best foot forward in a bid to convince the BRICS member states that the country is open for business, thus hoping to attract investment into the infrastructure and manufacturing sectors. Read the full IOL article here>

Rand’s fair value is heading to R20/$
The currency is less and less sensitive to inflation, and weakness is increasingly a function of sovereign risk. Read the full Business Day article here>

Five key charts to watch in global commodity markets this week
Here are five notable charts — actually, one is a map — to consider in global commodity markets as the week gets underway. Read the full Moneyweb article here>

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