ThinkDaily 24 February 2023

The JSE ended firmer on Thursday, as the market largely embraced Eskoms rescue plan summarised in Wednesday’s budget speech. The Top 40 closed the day up by 1.1%, the Resources 10 sector went up by 1.03%, the Financial 15 went up by 1.63%, and the Industrial 25 went up by 0.82%.
The rand traded at R18.24 against the dollar, R21.90 against the pound, and R19.30 against the euro.

In company-specific news, Truworths’ shares closed the day down by 5.45% following the release of the half-year results for the period that ended on the 1st of January 2023. Investors are probably concerned about the retailers rising credit sales and weaker trade in January and February. The company’s operations in Africa, Truworths Africa, sold 70% of its goods on credit.


Figure 1: Truworths' Historical Share Price Chart (Source: ThinkTrader Web)

This morning, Old Mutual released a voluntary trading statement for the period which ended on the 31^st of December 2022 with results from operations increasing by between 89% - 109% for the period.

Harmony Gold released a trading statement and operating update for the six months which ended on the 31^st of December 2022. The company is expecting its basic earnings for the interim period to increase by 20% to 40%.

On the commodities front, Brent Crude oil is trading at $83.12 a barrel and WTI Crude oil is trading at $76.15 a barrel. Gold is currently trading at $1825.31. Platinum is now trading at $944.65 and lastly, Palladium is at $1437.21. On the oil front, China's oil imports are expected to hit a record high this year as new refineries come on stream.

Across the globe, the S&P 500 closed the day down by 0.16%, the Dow Jones closed the day down by 0.33% and the Nasdaq closed up by 0.72%. The FTSE 100 was down by 0.29%, the DAX was up by 0.49% and CAC40 was up by 0.25%. In the Asian markets, the Nikkei 225 is currently up by 1.17% and the Heng Seng is currently down by 1.57%.

Market Moves (24 February 2024)