Financial News 17th July 2023

Market Overview
The FTSE/JSE All Share closed last week at 77 750.51, increasing by 4.01%. The basic materials and technology sectors were the biggest contributors increasing by 6.46% and 6.38% respectively during the week. The oil & gas sector was the lone detractor decreasing by 1.91% over the same period.
Looking at the MSCI indices, developed markets increased by 3.22% during the previous week while emerging markets increased by 4.96% over the same period.

SA manufacturing under pressure
Annual manufacturing production in South Africa increased by 2.5% in May of 2023, above market forecasts of a 2.3% rise. It marks the second consecutive month of growth in industrial activity and at a solid pace, mainly boosted by the manufacture of motor vehicles, parts & accessories and other transport equipment. Meanwhile, output slowed significantly for food & beverages.

Thanks to PPS Investments for the Market Overview and Weekly Indicators.

Rand slips in early trade
The rand was slightly weaker in early trade on Monday, with this week’s major focus local inflation data out on Wednesday and an interest rate announcement on Thursday. Read the full Moneyweb article here>

Asian shares slide on edginess over lack of Chinese stimulus
Asian shares slipped on Monday as a mixed bag of Chinese economic data were not as bad as some feared, but still fanned market impatience with the lack of major fiscal stimulus from Beijing. Read the full Business Day article here>

Economists divided over SARB rates forecast
Economists have remained divided on whether the South African Reserve Bank (SARB) will increase or leave unchanged its benchmark lending rate again on Thursday after 10 consecutive hikes since November 2021. Read the full IOL article here>

Stocks struggle on China data, rate-hike prospects: Markets wrap
Stocks dropped after another round of weak data fueled concerns about the recovery in China and as investors prepared for the latest batch of earnings. The prospect of continued monetary tightening by the Federal Reserve also weighed on sentiment. Read the full Moneyweb article here>

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