Trading Day – US inflation subsides and PSG votes to unbundle and delist

US CPI headline inflation was reported at 8.5%, down from the historic high of 9.1% last month. Markets reacted positively to the news, with the Nasdaq closing up 2.9% and the Rand strengthening to R16.20 against the dollar.

PSG passed a vote at its general meeting yesterday that will see them continue with the unbundling and delisting.

Here is the biggest news of the day.

  • US inflation trends down on the back of lower fuel prices. US CPI headline inflation reported an annualized rate of 8.5%, ticking slightly down from the historically high 9.1% reported last month and beating economist expectations of 8.7%. The change was mainly attributable to lower fuel prices. Core inflation, which ignores the more volatile food and energy prices and is more closely watched by the Fed, remained unchanged from last month at 5.9%. Nonetheless, markets still reacted positively to the news, with the Nasdaq closing 2.9% higher for the day and the Rand strengthening to R16.20 to the US dollar on expectations of the Fed easing their tightening path.
  • Disney beats expectations on the back of streaming subscriber growth. The Walt Disney Company reported that Disney+ subscriptions rose to 152 million, 5 million more than analysts forecasted. If Hulu and ESPN+ subscribers are included, Disney will reach 221 million streaming subscribers, allowing it to surpass the market leader Netflix’s 220 million subscribers. Disney also reported a beat in the top and bottom line for the quarter, achieving a revenue of $21.5 billion compared to $21 billion expected and earnings per share (EPS) of $1.09 compared to $0.96.
  • PSG passes vote to unbundle and delist. The unbundling, proposed earlier in the year, was passed with a 95% vote and will see the company release shares in PSG Konsult, Curro, Kaap Agri, CA&S and Stadio. The PSG Group owns a 64% stake (380 million shares) in Curro, which is listed on the JSE.
  • MTN reports a 200% increase in earnings and declares dividends. Earnings per share (EPS) came in at R4.45, and a dividend per share of R3.30 was declared. Last year no interim dividend was paid, and subscribers grew 5.5% from last year to 281.6 million.
  • Investec CEO Fani Titi sells R22.5 million worth of shares. The company reported a sale of 249 000 ordinary shares at 4.56 pounds (GBP) each, totalling GBP 1.1 million.