The first month of the year was quite a positive one overall for global equity markets, in particular, the S&P 500 and the Nasdaq indices which had their best Januarys in four years and in 22 years respectively. The S&P 500 increased by 6.18% over the month, while the Nasdaq had a double-digit surge, rising by 11.41%. The Dow Jones came in at a much lower increase of 2.83%.
Locally, the JSE All Share index breached the 80,000 level for the first time ever during the month, and although it ended the month below that level, the local bourse is up 6.77% so far this year.
In terms of currencies, the rand weakened 2.30% against the dollar in January and is currently trading at R17.3889, while it has weakened by 4.20% against the euro and 4.50% against the pound.
In company-specific news, Vodacom released a positive trading update for the quarter ended 31 December 2022. Group revenue increased by 14.8% to R30.7 billion and group service revenue increased by 16.1%. South Africa service revenue and International service revenue increased by 3% and 18% respectively, driven by a strong performance in mobile prepaid and strong data revenue growth and a weaker rand. The share price was down 0.51% yesterday.
Shoprite released a strong six-month operational update for the period ended 1 January 2023. Group total sales increased by 16.8%, while group total sales excluding liquor sales increased by 15.6%. Supermarkets RSA sales increased by 15.6%, while Supermarkets RSA excluding liquor increased by 17.5%. Supermarket sales outside of South Africa increased by 16% and Furniture sales increased by 8.6%. The share price fell by 1.70% yesterday.
Today the leaders of OPEC+ will be meeting to discuss production levels and are widely expected to maintain the current oil production levels. %. The United States Federal Reserve policy decision will be held at 21:00 local time and is expected to be dovish and increase the interest rate by 0.25%.
Graph: United States Historical Fed Rate Chart
Market Moves
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Learn and earn more today.
Visit our Education Centre