SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green on Friday, buoyed by gains in banking sector stocks and after the US Federal Reserve (Fed) maintained a dovish stance at its latest meeting.
- Investec (JO:INLJ), Standard Bank Group (JO:SBKJ) and FirstRand (JO:FSRJ) rose 1.6%, 1.2% and 1.2%, respectively.
- On the other hand, platinum miners, Impala Platinum Holdings (JO:IMPJ) and Royal Bafokeng Platinum (JO:RBPCBe) dropped 2.6% and 1.3%, respectively.
- Gold mining firms, Harmony Gold Mining Company (NYSE:HMY) and Gold Fields (JO:GFIJ) declined 2.5% and 1.5%, respectively.
- The JSE All Share index advanced 0.2% to close at 67,191.27.
- The UK market finished weaker on Friday, pulled down by losses in mining sector stocks.
- British American Tobacco (JO:SNHJ) and Imperial Brands (LON:IMB) dropped 2.5% and 1.2%, respectively.
- Miners, Glencore (LON:GLEN), Fresnillo (LON:FRES) and Rio Tinto (LON:RIO) lost 1.9%, 1.8% and 1.6%, respectively.
- International Consolidated Airlines Group (LON:ICAG) S.A. shed 2.1%, as return to normal travel wise is likely to face significant barriers in the short term.
- On the flipside, home builders, Taylor Wimpey (LON:TW), Barratt Developments (LON:BDEV) and Persimmon (LON:PSN) gained 1.9%, 1.7% and 1.4%, respectively.
- The FTSE 100 index declined 0.4% to close at 6,915.75.
us market review
- US markets ended higher on Friday after the US economic report revealed inflation may be higher than expected as the economy rebounds from the pandemic.
- Amazon.com (NASDAQ:AMZN) gained 2.2% after the company prevailed with enough votes to defeat a unionization effort by workers at one of its warehouses in Alabama.
- Pfizer (NYSE:PFE) rose 1.8% after the company requested that the emergency authorization for its COVID-19 vaccine be amended to include teens between the ages of 12 and 15 years old.
- On the contrary, Boeing (NYSE:BA) fell 1.0%, after the company flagged potential electrical issue in certain 737 MAX aircraft.
- The S&P 500 index rose 0.8% to settle at 4,128.80, while the DJIA index advanced 0.9% to close at 33,800.60.
- The NASDAQ index climbed 0.5% to end the trading session at 13,900.19.
ASIA MARKET REVIEW
- Asian markets are trading mostly lower this morning. In Japan, Sony Group (NYSE:SONY) has dropped 1.0% and Mazda Motor (T:7261) has declined 0.2%.
- In Hong Kong, Alibaba Group Holding (NYSE:BABA) has surged 6.4%, after the Chinese regulators slapped the company with a JPY18.23bn ($2.80bn) fine in its anti-monopoly probe of the tech juggernaut.
- In South Korea, SK Innovation (KS:096770) and LG Chem (KS:051910) have risen 15.1% and 0.9%, respectively, after the battery makers LG Energy Solution, which was spun-off from LG Chem last year, and SK Innovation came to a settlement over a trade secrets dispute.
- The Nikkei 225 index is trading 0.6% lower at 29,600.88.
- The Hang Seng index is trading 1.1% weaker at 28,396.19, while the Kospi index is trading 0.1% higher at 3,135.26.
COMMODITIES
- At 06:00 SAST today, Brent spot prices rose 0.1% to trade at $62.7/bl, amid hopes that fuel demand is picking up in the US as the summer driving season approaches and the rollout of COVID-19 vaccinations there accelerates.
- On Friday, Brent spot prices fell 0.4% to settle at $62.63/bl, on rising supplies from major producers and concerns over a mixed picture on the COVID-19 pandemic’s impact on fuel demand. Baker Hughes reported that the number of active oil and gas rigs rose by 2 to 432 for the week ended 9 April.
- On Friday, the Illinois North Central No.2 Yellow corn spot prices ended steady at $5.7075/bushel.
- At 06:00 SAST today, gold prices declined 0.3% to trade at $1,738.31/oz. On Friday, gold declined 0.7% to close at $1,743.88/oz, weighed down by a rising dollar and US Treasury yields.
- On Friday, copper declined 0.9% to close at $8,935.25/mt. Aluminium closed 0.9% lower at $2,246.75/mt.
CURRENCIES
- On Friday, the South African rand weakened against the US dollar. In the US, producer price index (PPI) increased more than expected in March, resulting in the largest annual gain in 9-1/2 years and likely marking the start of higher inflation as the economy reopens amid an improved public health environment and massive government aid. Wholesale inventories increased slightly more than initially estimated in February amid a decline in sales.
- The yield on benchmark government bonds rose on Friday. The yield on 2026 bond rose to 7.42%. Further, the yield on 2023 bond advanced to 5.15% while that for the longer-dated 2030 issue rose to 9.28%.
- At 06:00 SAST, the US dollar is trading 0.1% higher against the South African rand at R14.6246, while the euro is trading 0.1% higher at R17.3872. At 06:00 SAST, theBritish pound has marginally declined against the South African rand to trade at R20.0128.
- On Friday, the euro advanced against most of the major currencies. Meanwhile, German trade surplus narrowed in February, as exports to the UK and other EU states fell.
- At 06:00 SAST, the euro slipped 0.1% against the United States to trade at $1.1888, while it has gained 0.1% against the British pound to trade at GBP0.8688.
ECONOMIC UPDATES
- Gross gold & forex reserve fell to a level of $52.99bn in South Africa, in March. Gross gold & forex reserve had registered a reading of $53.79bn in the previous month.
- In March, the net gold & forex reserves in South Africa dropped to $50.88bn. In the previous month, the net gold & forex reserves had recorded a reading of $51.58bn.
- In Switzerland, the seasonally adjusted unemployment rate eased unexpectedly to a level of 3.3% in March, compared with a revised reading of 3.4% in the prior month.
- On a MoM basis, the seasonally adjusted retail sales in Italy eased 2.7% in February. In the prior month, retail sales had fallen 3.0%.
- On a monthly basis, industrial production in France fell 4.7% in February, compared with market expectations of a rise of 0.5%. In the prior month, industrial production had advanced by a revised 3.2%.
- Manufacturing production in France eased 4.6% in February on a monthly basis. In the prior month, manufacturing production had registered a rise of 3.3%.
- In February, the seasonally adjusted industrial production eased 1.6% on a MoM basis in Germany, compared with market expectations of a rise of 1.5%. In the previous month, industrial production had dropped by a revised 2.0%.
- PPI in the US climbed 1.0% in March on a MoM basis, more than market expectations for an advance of 0.5%. In the previous month, producer price had risen 0.5%.
- On a monthly basis in February, the seasonally adjusted final wholesale inventories recorded a rise of 0.6% in the US, higher than market expectations of a rise of 0.5%. The preliminary figures had indicated an advance of 0.5%. In the prior month, wholesale inventories had climbed by a revised 1.4%.
- Bank lending including trusts in Japan rose 6.3% in March on an annual basis. In the previous month, bank lending including trusts had advanced 6.2%.
CORPORATE UPDATES
SOUTH AFRICA
- Hulamin Limited (JO:HLMJ): The high-end aluminium products providing company, in its FY20 trading update, stated that it expects its headline loss per share to be between 64.00c and 70.00c and loss per share to be between 69.00c and 77.00c, respectively.
- Nigerian banks not indebted to MTN (JO:MTNJ) Nigeria or other telcos: Nigerian banks are not indebted to MTN Nigeria and other phone companies for using telecom platforms to provide payment services, a bank CEO has said.
- Exxaro (JO:EXXJ) sells three coal mining operations to BEE group: Exxaro, one of SA’s largest black empowered mining companies, has sold three noncore coal mines to a BEE junior miner.