Financial News 27th February 2023

Market Overview
The FTSE/JSE All Share closed last week at 76 937.77, decreasing by -2.94%. The health care and consumer staple sectors were the best performing increasing by 2.10% and 1.77% respectively. The basic material and technology sectors were the biggest detractors, decreasing by 7.72% and 5.93% respectively.
Looking at the MSCI indices, developed markets decreased by 2.59% during the previous week while emerging markets decreased by 2.74% over the same period.

SA producer inflation drops
South Africa’s annual producer inflation decreased for the sixth straight month to 12.7% in January 2023, down from 13.5% in December and slightly below market estimates of 12.75%. It was the lowest reading since March 2022, as costs continued to ease. Subsequently prices remained elevated for food products, beverages and tobacco products. On a monthly basis, producer prices fell by 0.6%, after being flat in the prior month and compared with market estimates of a 0.4% decrease.

Expect more volatility from the rand in 2023
Rand volatility is the gift that keeps on giving to speculators and traders. Over the past year, from peak to trough, the ZAR-USD (rand-US dollar) rate swung 37%.
That might be a gift to speculators, but it can be fatal to businesses trying to do business without hedging forex exposures. read the full article here>

The implications for SA now that it’s on FATF’s grey list
South Africa’s greylisting by the Financial Action Task Force (FATF), as announced on Friday, has significant implications for the country’s economic growth and global competitiveness, but moves are already being made to satisfy the FATF. Read the full article here>

Global economies surprise as growth supplants forecast recessions
Many of the recent trends have been to the upside as consumers keep finding the means to spend. Read the full article here>

MONEY CLINIC | Budgeting for a new baby: How much does it cost?
Welcoming a baby into your life can be a wonderful and joyous experience. The new arrival can even bring a more profound sense of purpose – and, inevitably, a lot of extra bills. Read the full article here>

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