Sharing our Daily Market Overview with you, ensuring that you do not miss out on any important market changes!
Local Market Update
- Local stocks rose yesterday, led by technology stocks and companies that earn much of their revenue abroad and benefit from the weakness of the local currency. Luxury goods maker Richemont, Sibanye Stillwater and tech investor Naspers were the three biggest risers in the Johannesburg Top 40 Index, rising 2.69%, 2.57% and 2.26% respectively. The Johannesburg All-Share Index climbed 0.95%, while the Top 40 Index gained 0.96%.
- The rand weakened on Tuesday as precious metals prices fell and power utility Eskom extended planned power cuts due to a shortage of generation capacity. Eskom, which regularly forces blackouts because of faults at its coal-fired power plants that have slowed economic growth in Africa’s most industrialised nation, said it would extend the blackouts until Saturday. At the close of trading, the rand was trading around R14.85 against the dollar, 1.05% weaker.
- Gold prices slipped this morning, moving away from the key $1,800 level, as a stronger US dollar and higher bond yields hurt gold’s appeal as a safe haven ahead of key central bank meetings. Meanwhile, oil prices fell this morning after industry data showed crude inventories rose more than expected and fuel stocks in the United States, the world’s largest oil consumer, unexpectedly increased last week. Crude inventories rose by 2.3 million barrels in the week to 22 October. That was more than the expectation of a 1.9 million barrel increase.
In Local News
Tiger Brands expects half-year profit to fall by up to 15%
JSE-listed Tiger Brands says major operational disruptions could result in the company reporting 15% less profit from continuing operations for the six months to 30 September and the company to report almost R700 million in one-off costs and share losses. The owner of popular household brands such as. Jungle Oats, Koo, Albany and Oros, expects earnings per share (Heps) from continuing operations to be between 60 and 179 cents lower than the 1 196 cents in the previous comparable period. The company took some hard financial blows in July as it not only had to bear the cost of the unrest in parts of KwaZulu-Natal and Gauteng, but also the recall of about 20 million Koo and Hugo canned vegetables suspected to have been defective in packaging.
Toyota expects SA government support to reduce price of new energy vehicles
Toyota South Africa Motors (TSAM) expects government to provide a package of support to reduce the price of new energy vehicles (NEVs) to make them more accessible and boost sales. Andrew Kirby, president and CEO of TSAM, confirmed on Tuesday that he was confident that the Green Paper on the automotive industry published by the government “will result in formal regulations and government support”. “For this reason, we have adjusted our prices accordingly to make hybrid technology more accessible,” he said. At an event at the TSAM Prospecton plant in Durban to celebrate the opening of the Corolla Cross production line in South Africa, Kirby said the cost of NEVs is simply not viable for many customers.