Financial News 19th June 2023

Market Overview
The FTSE/JSE All Share closed last week at 78 531.81, decreasing by 2.08%. The sectors that make up the JSE All Share were all positive during the previous week. The oil&gas and health care sectors were the biggest contributors increasing by 5.67% and 4.31% respectively.

Looking at the MSCI indices, developed markets increased by 2.70% during the previous week while emerging markets increased by 2.93% over the same period.

SA business confidence struggles
The South African Chamber of Commerce and Industry (SACCI) business confidence index fell to 106.9 in May, from 107.1 in the prior month. The main factors that negatively impacted sentiment were lower trade volumes, fewer inward tourists, and the weaker rand exchange rate against major trade and investment currencies. The main positive effects were more new vehicles sold, improved energy supply caused by a lower dollar crude oil price, and increased manufacturing output.

Mid-June market report
South African equities have performed well, with the JSE All Share Index up 4.0% month-to-date. Read the full Moneyweb article here>

South African rand and stocks weaken against stronger dollar
South Africa’s rand and stocks weakened in early trade on Monday, as the U.S. dollar made some gains. Read the full article from here>

China tech, yuan fall as stimulus hopes unanswered: Markets wrap
Asian stocks fell led by declines in Chinese tech companies as investors reset expectations for further stimulus from China after a key meeting Friday ended with little detail on a package. Read the full Moneyweb article here>

Oil reverses gains as China growth fears outweigh production cuts
Big banks cut GDP forecasts after data showed the post-Covid-19 recovery in the world’s second-largest economy is faltering. Read the full Business Day article here>

Rand gives up some of its strong gains as Fed confirms two more hikes may be coming in 2023
After large gains throughout Wednesday, the rand retreated slightly after the US Federal Reserve indicated it expects more hikes this year. Read the full article from News24 here>

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