Market Commentary | The week that was
Transnet CEO steps down: Sizakele Mzimela, CEO of Transnet Freight Rail, is resigning at the end of October 2023 amidst challenging company issues. Russell Baatjies will take over as temporary CEO starting 1st November 2023. The Congress of South African Trade Unions calls for fast leadership changes to prevent further issues for the company and the economy.
Nissan South Africa navigates bumpy roads, 400 jobs axed amid geopolitical turmoil: Nissan South Africa plans to retrench 400 employees, a quarter of its workforce at its Rosslyn plant, due to the inability to produce a successor for its NP200 bakkie after geopolitical issues in Russia disrupted the original production plans. They are exploring alternative models and have begun a restructuring consultation, while industry insiders speculate that affected employees might find opportunities with new manufacturers entering South Africa.
Egg shortage envelopes South Africa amidst severe Bird Flu outbreak: With over seven million chickens culled, South Africa is facing its worst bird flu outbreak since 2017 and experiencing a critical egg shortage. The government seeks to import eggs from global markets and has streamlined the permit process to expedite imports. Some restaurant chains claim they have adequate stock and are innovating recipes to navigate the shortage without drastically altering menu prices. The ongoing situation's full impact remains uncertain.
Markets: The South African rand weakened, trading at R19.40 against the dollar, influenced by global risk aversion due to Middle East violence and the pending national 2022 census data. The data is pivotal for analysing the post-pandemic economic and unemployment status in South Africa. South Africa's benchmark 2030 government bond weakened in early trading, with yields rising to 10.945%.
Week ahead: On Tuesday, 10th October, South Africa will launch the results of the Census 2022, and on Wednesday, the United States will release its Producer Price Index (PPI) inflation numbers. South Africa will release its mining output numbers while the United States discloses its Consumer Price Index (CPI) figures on Thursday. Wrapping up the week on Friday, the United States will announce the University of Michigan consumer sentiment index.
