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Despite downbeat economic data and global markets bleeding red, the South African bourse finished the week in the green. At the close of Friday (February 3, 2023) trading, the FTSE/JSE Top40 Index gained 0.61%, climbing even higher from midday’s 0.34%.
The blue-chip index was led higher by Glencore (GLN.JO) at 2.59% after the company said its Astron Energy subsidiary is expected to reopen its refinery in South Africa after a two-year closure.
In data news, the S&P Global South Africa Purchasing Managers’ Index for January 2023 fell to the contraction zone, the first time in three months and the lowest mark since December 2021.
S&P Global Market Intelligence senior economist David Owen noted the “fresh downturn” in the economy in an accompanying note, adding that the sector saw a slowdown in new orders due to continued load shedding in the country.
Speaking of load shedding, power utility Eskom said it will implement stage 4 cuts from 5pm local time Friday, which it will change to stage 3 the next morning. At a press briefing Thursday (February 2, 2023), Eskom also confirmed its two-year target to improve its operations and end power cuts.
The week ahead will bring in updates on the country’s foreign exchange reserves and the latest business confidence survey from SACCI. South African President Cyril Ramaphosa is also scheduled to deliver his annual State of the Nation Address, which is expected to address the nation’s power crisis.
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