Financial News 23rd October 2023

Market overview
The FTSE/JSE All Share closed at 70,198.00 last week, decreasing by 3.63%. During the previous week, the telecommunications and consumer staples sectors decreased by 1.68% and 1.99% respectively. The industrials and technology sectors were the biggest detractors decreasing by 6.01% and 5.97%.
Looking at the MSCI indices, developed markets decreased by 2.47% during the previous week while emerging markets decreased by 2.70% over the same period.

SA inflation rises
South Africa’s annual inflation rate accelerated for the second successive month to 5.4% in September 2023, up from 4.8% in August and slightly above market forecasts of 5.3%. However, it remained comfortably within the South African Reserve Bank’s (3% – 6%) target band. Main upward pressure came from prices of food & non-alcoholic beverages (8.1% vs 8% in August) and transportation (4.2% vs -0.8%).
The annual core inflation, which excludes prices of food, non-alcoholic beverages, fuel and energy, eased to a 13-month low of 4.5% in September 2023, from 4.8% in the previous month and below market forecasts of 4.7%. On a monthly basis, consumer prices rose by 0.6% in September, after a 0.3% increase in August, matching market estimates.

China GDP growth rate expands
The Chinese economy expanded by 4.9% year on year in Q3 2023, beating market forecasts of 4.4% and offering hopes that it will meet the official annual target of around 5% this year, as sustained stimulus from Beijing offset the impact of a prolonged property crisis and weak trade. China’s GDP grew by 6.3% in Q2, amid a low base of comparison from last year when Shanghai and other major cities were under strict lockdowns.
Looking at the first 9 months of 2023, the economy advanced by 5.2%. In 2023, the GDP added 3%, missing the official goal of about 5.5%.

Thanks to PPS Investments for the weekly Market Overview.

South African rand opens flat, global factors in driving seat
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Oil slips as diplomats try to contain Middle East conflict
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SA’s economic growth is forecast to decelerate in the third quarter
Economic growth in South Africa is expected to decelerate in the third quarter as the lagged effects of the upwards interest rate cycle since November 2021 and accelerating inflation continue to affect consumer spending. Read the full IOL article here>

Transnet collapse threatens entire South African economy
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US economic data keep coming in stronger and defying forecasts
US retail sales exceeded all forecasts and industrial production strengthened last month, fresh evidence of a resilient American consumer whose spending is helping stabilise manufacturing. Read the full Moneyweb article here>

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