Financial News 18th September 2023

Market overview
The FTSE/JSE All Share closed last week at 74 589.81, increasing by 1.27%. The basic materials and oil & gas sectors increased by 9.07% and 5.24% respectively during the past week. The financials and telecommunications sectors decreased by 3.37% and 1.40% during the same period.
Looking at the MSCI indices, developed markets increased by 0.44% during the previous week while emerging markets increased by 1.24% over the same period.

SA manufacturing remains fragile
Annual manufacturing production in South Africa increased by 2.3% in July of 2023, following a 5.5% jump in the prior month. The month of July experienced a decrease of 1.6%, missing market estimates of a 0.7% increase. Loadshedding remains the primary stumbling block to growth in the manufacturing sector.

Thanks to PPS Investments for the weekly Market Overview.

What to expect from the Reserve Bank’s interest rate announcement this week
Economists are optimistic that interest rates will stay on hold this week – but there are still some risks that the Reserve Bank might factor into the decision. Read the full Businesstech article here>

Oil keeps rising on cuts by Saudi Arabia and Russia and China hopes
Oil prices rose for a third consecutive session on Monday, buoyed by forecasts of a widening supply deficit in the fourth quarter after Saudi Arabia and Russia extended cuts and on optimism of a demand recovery in China, the world’s top crude importer. Read the full Business Day article here>

Asian shares drop as dollar holds firm before Banks’ policy moves
Asian shares fell and the dollar was firm on Monday as investors looked ahead to policy meetings from the Federal Reserve, the Bank of Japan and other central banks this week. Read the full Business Day article here>

Investment options for a 50-year-old with no savings or a pension fund
Given the poor state of retirement funding in South Africa and the fact that many people have little or no savings accumulated, the attached article give some insight in to what a 50 year old planning to retire at 65 can do to help boost savings. This table indicates the amount of capital required to fund a monthly pension –

Read the full article by Kenny Meiring published in the Daily Maverick here>

On a lighter note, in the numbers this week
2588 – the number of registered rugby clubs in the US. The largest in the world.
37 – the number of official languages in Bolivia (the most in the world)
$8 Billion – what German footwear brand, Birkenstock could be valued at. They have filed for a listing on the New York Stock Exchange

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