Market Review, Commodities, Currencies & Corporate Update - 15.04.21

Published 2021/04/15, 08:53
Updated 2021/07/16, 11:15

South Africa Market Review

  • South African markets closed in the green yesterday, as the release of better than expected retail sales data boosted investor morale.
  • Retailers, Truworths International (JO:TRUJ), Massmart Holdings (JO:MSMJ) and Foschini Group (JO:TFGJ) gained 3.0%, 2.0% and 1.0%, respectively.
  • On the other hand, Standard Bank Group (JO:SBKJ) and Capitec Bank Holdings JO:CPIJ) dropped 1.8% and 0.9%, respectively.
  • Gold miners, Harmony Gold Mining (JO:HARJ) and Gold Fields (JO:GFIJ) declined 3.8% and 0.9%, respectively.
  • Further, platinum mining firms, Anglo American Platinum (JO:AMSJ), Impala Platinum Holdings (JO:IMPJ) and Royal Bafokeng Platinum (JO:RBPCBe) shed 2.5%, 1.6% and 0.4%, respectively.
  • The JSE All Share index advanced 1.1% to close at 67,812.15.

UK Market Review

  • The UK market finished firmer yesterday, buoyed by gains in mining sector stocks.
  • Miners, Glencore (LON:GLEN), Antofagasta (LON:ANTO) and BHP Group (JO:BHPJ) gained 5.4%, 4.5% and 3.3%, respectively.
  • Oil companies, BP (LON:BP) and Royal Dutch Shell (LON:RDSa) rose 3.4% and 3.1%, respectively.
  • AstraZeneca (LON:AZN) added 1.5%, after China’s health regulator approved Tagrisso, its lung cancer treatment, as adjuvant treatment for patients with early-stage lung cancer.
  • On the flipside, Tesco (LON:TSCO) shed 2.0%, after it reported an unchanged FY20 dividend and a significant drop in profit after COVID-19 costs outweighed higher revenue.
  • Berkeley Group Holdings (LON:BKGH) lost 1.5%.
  • The FTSE 100 index advanced 0.7% to close at 6,939.58.

US Market Review

  • US markets ended mostly lower yesterday, after the Federal Reserve’s (Fed) Beige Book pointed to a moderate pace of economic growth this spring.
  • Bed Bath & Beyond (NASDAQ:BBBY) plunged 12.2%, after the company recorded less than expected 4Q20 sales.
  • JPMorgan Chase (NYSE:JPM) fell 1.9%, after its Chief Executive Officer (CEO), Jamie Dimon noted loan demand would remain challenged.
  • However, it posted better than expected 1Q21 profit and revenue.
  • On the contrary, Dollar General (NYSE:DG) rose 0.7%, after the company stated that it planned to hire people at in-person and virtual hiring events.
  • The S&P 500 index fell 0.4% to settle at 4,124.66, while the DJIA index advanced 0.2% to close at 33,730.89.
  • The NASDAQ index eased 1.0% to end the trading session at 13,857.84.

Asia Market Review

  • Asian markets are trading mostly lower this morning, after postponement of Johnson and Johnson’s (NYSE:JNJ) Covid-19 vaccine.
  • In Japan, Panasonic (T:6752) has gained 1.1%.
  • Sumitomo Mitsui Financial Group (T:8316) and Mitsubishi UFJ Financial Group (T:8306) have risen 1.6% and 1.4%, respectively.
  • In Hong Kong, oil company, CNOOC (HK:0883) has gained 1.6%.
  • In South Korea, Samsung Electronics (KS:005930) has shed 0.1%.
  • The Nikkei 225 index is trading 0.1% lower at 29,601.01.
  • The Hang Seng index is trading 1.1% weaker at 28,586.68, while the Kospi index is trading 0.4% higher at 3,194.17.

Commodities

  • At 06:00 SAST today, Brent spot prices rose 0.5% to trade at $66.39/bl, extending previous session gains.
  • Yesterday, Brent spot prices rose 3.8% to settle at $66.08/bl, after the US Energy Information Administration (EIA) reported that US crude inventories fell by 5.90mn bls for the week ended 9 April.
  • Yesterday, the Illinois North Central No.2 Yellow corn spot prices rose 2.5% to $5.845/bushel.
  • At 06:00 SAST today, gold prices advanced 0.1% to trade at $1,738.72/oz. Yesterday, gold declined 0.5% to close at $1,736.43/oz, as Treasury yields recovered slightly which sapped demand for safe haven metal.
  • Yesterday, copper rose 2% to close at $9,080.50/mt. Aluminium closed 1.3% higher at $2,307.00/mt.

Currencies

  • Yesterday, the South African rand strengthened against the US dollar, after retail sales in South Africa unexpectedly rose on an annual basis in February, as decrease in the second wave of Covid-19 infections and the end of alcohol bans might have seen more consumers going out to spend. In the US, Fed’s beige book showed that economic activity between late February and early April was buoyed by increased COVID-19 vaccinations and strong fiscal support, and the labour market also improved as more people returned to work, but inflation also picked up and companies faced an array of shortages that are hindering production. The New York Fed President John Williams stated that inflation could be volatile in the near term as the economy recovers from the pandemic.
  • The yield on benchmark government bonds fell yesterday. The yield on 2026 bond fell to 7.35%. Further, the yield on 2023 bond advanced to 5.02% while that for the longer-dated 2030 issue fell to 9.21%.
  • At 06:00 SAST, the US dollar is trading 0.1% higher against the South African rand at R14.4102, while the euro is trading 0.1% higher at R17.2554. At 06:00 SAST, the British pound has gained 0.1% against the South African rand to trade at R19.8491.
  • Yesterday, the euro advanced against most of the major currencies. The European Central Bank (ECB) Vice President Luis de Guindos stated that ECB will act on any detrimental rise in borrowing costs and considers removing stimulus too early a bigger risk than acting too late.
  • At 06:00 SAST, the euro slipped 0.1% against the US dollar to trade at $1.1974, while it has marginally weakened against the British pound to trade at GBP0.8694.

Economic Updates

  • On a YoY basis, retail sales in South Africa advanced 2.3% in February, compared to market expectations of a drop of 1.8%. Retail sales had recorded a revised drop of 3.7% in the previous month.
  • In February, on a monthly basis, retail sales recorded a rise of 6.9% in South Africa. Retail sales had fallen by a revised 2.4% in the previous month.
  • In March, on an MoM basis, the final consumer price index (CPI) advanced 1.0% in Spain, compared to a drop of 0.6% in the prior month. The preliminary figures had also recorded an advance of 1.0%. Markets were anticipating the CPI to climb 1.0%.
  • Industrial production in the eurozone fell 1.0% in February on a monthly basis, compared to an advance of 0.8% in previous month. Market expectations were for the seasonally adjusted industrial production to ease 1.1%.
  • The Fed beige book showed that economic activity between late February and early April was buoyed by increased COVID-19 vaccinations and strong fiscal support, and the labour market also improved as more people returned to work, but inflation also picked up and companies faced an array of shortages that are hindering production.
  • The New York Fed President John Williams stated that inflation could be volatile in the near term as the economy recovers from the pandemic.
  • The Bank of Japan Governor Haruhiko Kuroda warned that Japan’s economy was picking up but any recovery was likely to be modest due to lingering caution over the coronavirus pandemic.

Corporate Updates

South Africa

  • EOH Holdings Limited (JO:EOHJ): The technology services providing company, in its 1H21 results, indicated that its revenue fell to R3.77bn from R4.65bn posted in the corresponding period of the previous year. Its diluted loss per share stood at 103.00c compared with 536.00c in the same period of the prior year.
  • Bell Equipment Limited (JO:BELJ):The construction and mining operation materials manufacturer, in its FY20 results, revealed that its revenue declined from the preceding year to R6.69bn. Its diluted loss per share stood at 65.00c, compared with EPS of 70.00c recorded in the previous year.
  • Hulamin Limited (JO:MTNJ): The aluminium products manufacturing company, in its FY20 results, stated that its revenue decreased to R8.58bn from R10.71bn posted in the previous year. Its diluted loss per share stood at 75.00c compared with 380.00c posted last year.
  • Conditions for buying of Steinhoff (JO:SNHJ) properties have been met, Pepkor (JO:PPHJ) says: Retailer Pepkor, formerly Steinhoff Africa Retail, says the conditions for the R1.05bn purchase of properties from subsidiaries of its largest shareholder, Steinhoff International, have been met.

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