Market Overview
The FTSE/JSE All Share closed last week at 78 870.36, increasing by 2.40%. Consumer discretionary and basic materials were the best performing sectors increasing by 7.45% and 2.42% respectively. The technology and health care sectors were the main detractors, decreasing by 1.58% and 0.70% respectively during the previous week.
Looking at the MSCI indices, developed markets increased by 1.31% during the previous week while emerging markets increased by 1.39% over the same period.
Lack of power impacting SA manufacturing
Manufacturing production in South Africa decreased by 5.2% from the previous year, more than market expectations of a 2.2% fall. This was the fourth consecutive month of decreases in industrial activity and at the sharpest pace since April last year. The steep decline is largely due to loadshedding. The largest negative contributions came from the manufacturing of food and beverages.
Rand gains as dollar slips; inflation in focus
The South African rand gained against the dollar in early trade on Monday as the US currency slipped on global markets, with local investors’ focus on inflation data this week. Read the full article from Business Times here>
Godongwana rules out recession in 2023
South Africa will not fall into recession this year despite a gloomy International Monetary Fund (IMF) forecast and a contraction in the last three months of 2022, its finance minister told Reuters in an interview on Friday. Read the full Moneyweb article here>
Oil keeps rising on Opec+ cuts as traders await Chinese indicators
Oil prices edged up slightly on Monday, supported by Opec+’s plans to cut more output, while investors eyed Chinese economic data for signs of a demand recovery by the world’s second-largest oil consumer. Read the full Business day article here>
Asian stocks trade warily before US earnings updates and Chinese data
Asian stocks traded cautiously on Monday as US earnings season gets into full swing, while much Chinese data will offer insight into how the world’s second-largest economy is recovering. Read the full Business Day article here>
Some metros want eye-watering rates, tariff hikes
eThekwini Metropolitan Municipality residents will face the sharpest tariff increases out of the country’s major metros if the city’s draft budget for 2023/24 is approved. Read the full article from Moneyweb here>