In Wednesday’s trading session in the local markets, the Top 40 closed the day down by 0.32% and the Resources 10 sector went up by 0.65%, the Financial 15 went down by 0.75%, the Industrial 25 went down by 0.72%. The rand traded at R17.12 against the Dollar, R21.22 against the Pound, and R18.67 against the Euro.
Tencent is currently up 3.6% this morning in the Asian markets and could drive the share price performances of Naspers and Prosus in today’s trading session on the JSE. Additionally, Naspers and Prosus announced plans to cut its workforce by 30% with CEO Bob van Dijk saying, “the reality is that the macro environment has become more difficult and has changed a lot, this also means that the cost of capital has changed a lot, as interest rates go up and risk premiums also go up.”
In other company-specific news, Renergen’s share price has climbed by 22% since its announcement that it is finally producing liquid helium.
Truworths and the Outsurance Group released trading updates this morning for their respective six-month trading periods.
Graph 1: Renergen Share Price Chart (Source: Infront)
In the US, Tesla reported record revenue for its fourth quarter financial results for 2022. Revenue increased to $24.32 billion, while earnings per share of $1.19 beat market estimates. Automotive revenue amounted to $21.3 billion, while automotive gross margins came in at 25.9%, the lowest figure in the last five quarters.
Lastly, on the economic calendar, the South African Reserve Bank will be announcing its interest rate decision this afternoon. A 50 basis point hike is largely expected.
Market Moves (25 January 2023)
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