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Market Commentary | The week that was

South Africa's R150 billion economic setbacks due to load shedding: South African Revenue Service (SARS) Commissioner Edward Kieswetter stated that load-shedding may have caused the South African economy a R150 billion loss in 2022/23. He also expressed concerns over the rise of organized crime impacting sectors like Eskom and Transnet. Despite these challenges, SARS reported a 7% increase in revenue, collecting over R2 trillion in 2022/23, and received a clean audit for the same fiscal year.

The Development Bank of Southern Africa (DBSA) and Transnet collaboration: The Development Bank of Southern Africa (DBSA) is assisting Transnet, South Africa's state ports and freight-rail operator, to prepare for private sector involvement after Transnet's freight services declined and faced criticism for inefficiency. South Africa's presidency suggests private entities manage and upgrade infrastructure. Transnet is exploring partnerships, like with the Philippines's International Container Terminal Services.

Tiger Brands CEO resigns: Tiger Brands' CEO, Noel Doyle, has resigned after two decades, leading to a 13% surge in the company's share price. Former Premier Group Leader, Tjaart Kruger, will take over the role. This transition occurs as Tiger Brands faces anticipated earnings decline due to rising operational costs and sectoral challenges.

Markets: The South African rand began the week stable, trading at 19.04 against the US dollar. Global events like the Israel-Hamas conflict and US economic indicators are expected to be key influencers this week. Rising US Treasury yields could pressure the rand. Concerns about the Middle East conflict escalating have increased the demand for safe-haven assets. South Africa's benchmark 2030 government bond yield dropped slightly to 10.78%.

Week ahead: On Tuesday, 24th October, South Africa will disclose the South African Reserve Bank (SARB) leading indicator for August, and on Thursday, South Africa will release its Producer Price Index (PPI) inflation figures, while the Euro Zone will announce the European Central Bank (ECB) policy interest rate decision and the United States will present its real Gross Domestic Product (GDP) growth data. On Friday the United States will reveal its Core Personal Consumption Expenditures (PCE) price index.

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