Market Review, Commodities, Currencies & Corporate Update - 03.05.21

  • Market Overview
  • Editor's Pick

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the red on Friday, pulled down by losses in banking sector stocks and as caution amid surging Covid-19 numbers in parts of Asia and disappointing economic data there weighed on investor sentiment.
  • Banking sector stocks, Standard Bank (JO: SBKJ ) Group, Nedbank Group (JO: NEDJ ) and Capitec Bank (JO: CPIJ ) Holdings dropped 3.2%, 3.1% and 1.5%, respectively.
  • Platinum miners, Northam Platinum (JO: NHMJ ), Impala Platinum Holdings(JO: IMPJ ) and Anglo American (JO: AMSJ ) Platinum declined 4.7%, 2.3% and 2.2%, respectively.
  • Market heavyweight, Naspers (JO: NPNJn ) shed 0.5%. On the other hand, tobacco company, British American Tobacco (JO: SNHJ ) gained 2.7%.
  • The JSE All Share index declined 0.7% to close at 66,937.00.

UK MARKET REVIEW

  • The UK market finished firmer on Friday, boosted by gains in healthcare sector stocks.
  • AstraZeneca (LON: AZN ) rose 4.3% after the company stated that it expected performance to improve after “robust” revenue growth in 1Q21 and forecasted higher sales in 2Q21.
  • Hikma Pharmaceuticals (LON: HIK ) gained 3.2%, after the company reported that injectables business was performing well with product launches and general demand in the US partly offsetting reduced demand for Covid-19 related products and the gradual return of elective surgeries.
  • Smurfit Kappa Group (LON: SKG ) advanced 4.2%, after the company reported an increase in its 1Q21 corrugated volume growth.
  • On the flipside, Barclays (LON: BARC ) plunged 7.0%, after it cautioned that its outlook remained uncertain due to the COVID-19 pandemic.
  • The FTSE 100 index advanced 0.1% to close at 6,969.81.

US MARKET REVIEW

  • US markets ended lower on Friday.
  • Twitter (NYSE: TWTR ) plunged 15.2%, after the company reported a decrease in its 1Q21 users.
  • Chevron (NYSE: CVX ) fell 3.6%, after the company reported less than expected 1Q21 revenue, amid continued weakness in downstream volume and margin due to the COVID-19 pandemic and Winter Storm Uri.
  • Apple (NASDAQ: AAPL ) dropped 1.5%, after the European Union regulators accused the company of abusing its dominant position in the music-streaming market by imposing restrictive rules on the App Store.
  • The S&P 500 index fell 0.7% to settle at 4,181.17, while the DJIA index declined 0.5% to close at 33,874.85.
  • The NASDAQ index eased 0.9% to end the trading session at 13,962.68.

ASIA MARKET REVIEW

  • Asian markets are trading lower this morning.
  • In Japan, equity markets remain closed on account of public holiday. In Hong Kong, oil company, CNOOC (HK: 0883 ) has lost 1.5%.
  • Galaxy Entertainment Group has shed 0.9%.
  • In South Korea, Samsung Electronics (KS: 005930 ) has gained 0.4%.
  • LG Electronics (KS: 066570 ) has dropped 1.3%.
  • On Friday, the Nikkei 225 index declined 0.8% to settle at 28,812.63.
  • Today, the Hang Seng index is trading 1.6% weaker at 28,274.04, while the Kospi index is trading marginally lower at 3,145.70.

COMMODITIES

  • At 06:00 SAST today, Brent spot prices rose 0.2% to trade at $66.68/bl, reversing previous session losses.
  • On Friday, Brent spot prices fell 2.1% to settle at $66.53/bl, on worries about fuel demand in India, where COVID-19 infections have soared. Meanwhile, Iran and the US are in talks to revive a nuclear deal which could lead to a lifting of US sanctions that would allow Iran to ramp up oil exports. Baker Hughes reported that the number of active US oil drilling rigs fell by 1 to 342 for the week ended 30 April.
  • On Friday, the Illinois North Central No.2 US Corn Futures spot prices ended steady at $6.5325/bushel.
  • At 06:00 SAST today, gold prices advanced 0.2% to trade at $1,771.88/oz. On Friday, gold declined 0.2% to close at $1,769.13/oz, as the greenback gained ground against other major currencies.
  • On Friday, copper declined 0.6% to close at $9,829.00/mt. Aluminium closed 0.6% lower at $2,407.50/mt.

CURRENCIES

  • On Friday, the South African rand weakened against the US dollar. In the US, consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government, building a strong foundation for a further acceleration in consumption in the 2Q21.
  • The yield on benchmark government bonds rose on Friday. The yield on 2026 bond rose to 7.37%. Further, the yield on 2023 bond declined to 4.69% while that for the longer-dated 2030 issue rose to 9.28%.
  • At 06:00 SAST, the US dollar is trading marginally higher against the South African rand at R14.4996, while the euro is trading 0.1% higher at R17.4276. At 06:00 SAST, the British pound has marginally gained against the South African rand to trade at R20.0357.
  • On Friday, the euro advanced against most of the major currencies. The eurozone economy dipped into a second technical recession after a smaller than expected contraction in 1Q21, but is firmly set for recovery as pandemic curbs are lifted amid accelerating vaccination campaigns. Meanwhile, the German economy contracted larger than expected in 1Q21 as a lockdown is in place since November 2020 to contain the coronavirus stifled private consumption in Europe's largest economy
  • At 06:00 SAST, the euro marginally slipped against the US dollar to trade at $1.202, while it has marginally weakened against the British pound to trade at GBP0.8699.

ECONOMIC UPDATES

  • Compared to a revised reading of 118.00 in the previous month, the KOF economic barometer in Switzerland recorded a rise to 134.00 in April. Market expectations were for the KOF economic barometer to rise to a level of 119.50.
  • In Spain, the preliminary gross domestic product ( GDP ) recorded a drop of 0.5% on a QoQ basis in 1Q 2021, meeting market expectations of a drop of 0.5%. In the prior quarter, GDP had climbed 0.01%.
  • In Italy, the flash GDP slid 0.4% on a quarterly basis in 1Q 2021, compared to a fall of 1.8% in the prior quarter. Market anticipations were for the GDP to fall 0.5%.
  • The flash CPI recorded a rise of 0.4% on a MoM basis in April, in Italy, meeting market expectations of an advance of 0.4%. In the previous month, the CPI had registered a rise of 0.3%.
  • Consumer spending in France recorded a drop of 1.1% in March on a monthly basis. In the previous month, consumer spending had climbed by a revised 0.3%.
  • In France, the producer price index (PPI) rose 1.0% in March on a monthly basis. In the prior month, the PPI had registered a revised rise of 0.9%.
  • The flash GDP slid 1.7% on a QoQ basis in 1Q 2021, in Germany, compared to an advance of 0.3% in the previous quarter. Markets were expecting GDP to ease 1.5%.
  • In the eurozone, the unemployment rate eased unexpectedly to a level of 8.1% in March, compared to a revised reading of 8.2% in the prior month. Markets were anticipating the unemployment rate to climb to 8.3%.
  • In 1Q 2021, on a QoQ basis, the seasonally adjusted flash GDP in Eurozone dropped 0.6%, lower than market expectations of a fall of 0.8%. In previous quarter, GDP had fallen 0.7%.
  • On a MoM basis, the preliminary CPI recorded a rise of 0.6% in April, in the eurozone. In the previous month, the CPI had registered a rise of 0.9%.
  • In the US, personal consumption expenditure deflator recorded a rise of 0.5% on a monthly basis, in March. In the previous month, personal consumption expenditure deflator had registered a rise of 0.2%.
  • In the US, personal income registered a rise of 21.1% in March on a MoM basis, more than market expectations for a rise of 20.3%. In the prior month, personal income had recorded a revised drop of 7.0%.
  • In April, the Chicago Fed purchasing managers’ index ( PMI ) recorded an unexpected rise to a level of 72.10 in the US, compared to a level of 66.30 in the previous month. Markets were expecting the Chicago Fed PMI to fall to 65.30.
  • In April, the final Reuters/ Michigan consumer sentiment index registered a rise to 88.30 in the US, more than market expectations for an advance to a level of 87.40. In the prior month, the Reuters/Michigan consumer sentiment index had registered a level of 84.90. The preliminary figures had indicated a rise to 86.50.
  • In February, the GDP registered a rise of 0.4% on a monthly basis in Canada, less than market expectations for a rise of 0.5%. In the prior month, the GDP had risen 0.7%.

CORPORATE UPDATES

SOUTH AFRICA

  • Impala Platinum Holdings Limited (JO: IMPJ ): The platinum mining company, in its 3Q21 production results, stated that the company witnessed an 8.0% increase in total 6E concentrate volumes to 2.47mn oz, with a 9.0% gain in managed volumes to 1.77mn oz, a 7.0% increase in JV production to 417,000.00oz and stable third-party receipts of 275,000.00oz. Group tonnes milled at managed operations increased by 4.0% to 5.59mn tonnes during the quarter, with higher volumes reported at Impala Rustenburg, Impala Canada, and Marula. Milled grade was stable at 3.64g/t and improved recoveries and yield resulted in 6E concentrate production at managed operations rising 6.0% to 569,000 oz.
  • Rhodes Holdings Ltd (JO: RFGJ ): The company, in its 1H21 trading update, stated that it expects its HEPS to be between 44.9c and 46.50c and its EPS to be between 39.90c and 41.40c.
  • Technology Solutions, the listed IT holding company indirectly controlled by Iqbal Survé, has procured an alternative banking arrangement that will allow it to continue to trade, just a day before FNB was to close its last remaining transactional bank account.
  • Adapt IT Holdings Ltd (JO: ADIJ ) needs more time to consider Huge and Volaris offers: Technology firm Adapt IT stated that its independent board, tasked with considering two buyout offers for its business, needs more time to do its job and has extended its deadline to next week.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100