Financial News 3rd July 2023

Market Overview
The FTSE/JSE All Share closed last week at 76 027.83, increasing by 2.20%. The technology and consumer discretionary sectors were the biggest contributors increasing by 11.67% and 4.00% respectively during the previous week. The basic materials and consumer staples sectors were the biggest detractors decreasing by 1.32% and 0.07% respectively.

Looking at the MSCI indices, developed markets increased by 2.25% during the previous week, while the MSCI emerging markets index was flat over the same period.

SA producer price eases
The annual producer price inflation in South Africa decreased to 7.3% in May 2023, from 8.6% in the previous month, matching market forecasts. It is the lowest reading since August 2021. On a monthly basis, producer prices went up by 0.6% in May, after being flat in the previous month.

Consumer confidence remains low
The FNB/BER Consumer Confidence Index for South Africa declined to -25 points during Q2, the lowest in a year from -23 points in the first quarter of 2023. This is the second-lowest reading on record since 1994 which highlights the concerns around economic prospects in South Africa and household finances.

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

Share markets recover but rand tumbles
Share prices on the JSE and on global markets started to recover last week and most bourses ended the month higher. Read the full article from IOL Business Report here>

Global risk-on rally extends as Asia stocks gain: Markets wrap
The rally in global equities continued Monday in Asia on positive momentum from Wall Street and signs of moderating US inflation. Read the full article published on Moneyweb here>

South African rand steady in early trade
The South African rand was little changed in early trade on Monday after weakening last week along with other emerging market currencies. Read the full article from Business Recorder here>

Interest rate trouble ahead
South African debt holders should anticipate another hike to interest rates this month, as economists and analysts remain divided and the Reserve Bank remains cagey on the path forward. Read the full article from BusinessTech here>

Gold inches down on stronger dollar and rate hike jitters
Gold prices edged lower in early Asian trade on Monday, pushed down by a stronger US dollar and as chances of more interest rate hikes by the Federal Reserve weighed on the bullion’s appeal. Read the full Business Day article here>

Need more information? Chat with us