The JSE ended lower on Wednesday, driven low by the resources index which fell by more than 4.50%. The South African Finance Minister Enoch Godongwana presented his second annual budget yesterday which was free of any shocks or surprises and was well received in general.
The yield on South Africa’s 10.5% local currency bond due in December 2026 fell by 10 basis points to 8.56% following the speech, marking the lowest level in four sessions. The Rand also ended a two-day losing streak against the dollar.
The US Fed Meeting Minutes were released yesterday which highlighted the need to keep interest rates higher for longer given a strong labour market and strong US economy.
In company-specific news, Bid Corp released strong interim results yesterday morning due to a recovering hospitality industry as most countries have exited COVID lockdowns. The group, which operates in 35 countries across six continents reported revenue that increased by 28% to R91.7 billion while profit soared by 48% year-on-year to R3.29 billion. Headline earnings per share (HEPS) rose by 45.5% to 971.7c, and the dividend has been increased to 440 cents from 300 cents per share.
On the local economic calendar, the producer price inflation will be released today.
Anglo American Platinum's share price has reached a low last seen in May 2020.
Market Moves (22 February 2023)
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