SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green yesterday, boosted by gains in mining sector stocks.
- Gold miners, Sibanye Stillwater (JO:SSWJ), Harmony Gold Mining Company (JO:HARJ), Gold Fields (JO:GFIJ) and AngloGold Ashanti (JO:ANGJ) jumped 7.5%, 7.2%, 6.2% and 4.8%, respectively.
- Platinum miners, Northam Platinum (JO:NPHJ) and Anglo American Platinum (JO:AMSJ) advanced 4.3% and 2.3%, respectively.
- Diversified miners, Anglo American (JO:AGLJ), Merafe Resources (JO:MRFJ), Kumba Iron Ore (JO:KIOJ) and Exxaro Resources (JO:EXXJ) gained 3.2%, 2.8%, 2.7% and 2.6%, respectively.
- Insurance companies, Discovery Holdings (JO:DSYJ), Old Mutual (JO:OMUJ) and Sanlam (JO:SLMJ) rose 3.1%, 2.9% and 2.2%, respectively.
- Retailers, Cashbuild (JO:CSBJ), Clicks Group (JO:CLSJ), Shoprite Holdings (JO:SHPJ) and Mr Price Group (JO:MRPJ) added 3.0%, 2.5%, 2.2% and 1.9%, respectively.
- The JSE All Share index advanced 1.9% to close at 82,765.12.
UK MARKET REVIEW
- The UK market finished firmer yesterday, buoyed by gains in mining and energy sector stocks as well as robust corporate earnings results.
- Miners, Antofagasta (LON:ANTO), Glencore (LON:GLEN), Fresnillo (LON:FRES) and Rio Tinto (LON:RIO) advanced 4.6%, 3.2%, 2.4% and 1.8%, respectively.
- Banking company, HSBC Holdings (LON:HSBA) gained 4.0%, after the company reported better than expected profits in 1H24 and announced a $3bn share buyback.
- Energy companies, Shell (LON:RDSa) and BP (LON:BP) gained 2.7% and 1.6%, respectively, tracking higher oil prices.
- Defense and aerospace companies, BAE Systems (LON:BAES) and Rolls-Royce Holdings (LON:RR) added 1.2% and 1.1%, respectively.
- On the other hand, pharmaceutical company, GSK (LON:GSK) and Hikma Pharmaceuticals (LON:HIK) declined 2.0% and 0.8%, respectively.
- The FTSE 100 index advanced 1.1% to close at 8,367.98.
US MARKET REVIEW
- US markets ended higher yesterday, driven by gains in semiconductor stocks and the Fed's decision to hold interest rates steady, with a potential cut hinted for September.
- Semiconductor chips company, Nvidia Corporation (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), Qualcomm (NASDAQ:QCOM) and Micron (NASDAQ:MU) technology jumped 12.8%, 12.0%, 8.4% and 7.1%, respectively.
- Technology companies, Intel Corporation (NASDAQ:INTC) and Apple (NASDAQ:AAPL) advanced 2.0% and 1.5%, respectively.
- On the contrary, consumer goods companies, Johnson & Johnson (NYSE:JNJ) and Procter & Gamble (NYSE:PG) dropped 2.2% and 0.6%, respectively.
- The S&P 500 index rose 1.6% to settle at 5,522.30, while the DJIA index advanced 0.2% to close at 40,842.79.
- The NASDAQ index climbed 2.6% to end the trading session at 17,599.40.
ASIA MARKET REVIEW
- Asian markets are trading mostly lower this morning.
- In Japan, automobile company, Yamaha Corporation (TYO:7951) has plunged 12.7%.
- On the flipside, consumer electronics company, Hitachi (TYO:6501) has advanced 4.7%.
- In Hong Kong, real estate company, Longfor Group Holdings (HK:0960) has shed 3.8%.
- On the other hand, mining company, Zijin Mining Group (HK:2899) has gained 1.2%.
- In South Korea, shipping company, Heung-A-Shipping (KS:003280) has surged 7.5%.
- On the contrary, infrastructure support products company, Doosan Corporation (KS:000157) has dropped 5.0%.
- The Nikkei 225 index is trading 2.6% lower at 38,094.24.
- The Hang Seng index has declined 0.3% to trade at 17,291.21, while the Kospi index is trading 0.8% higher at 2,791.69.
COMMODITIES
- At 05:30 SAST today, Brent prices rose 1% to trade at $81.51/bl.
- Yesterday, Brent prices rose 2.7% to settle at $80.72/bl, due to concerns that the killing of a Hamas leader in Iran could escalate Middle East tensions and impact oil supplies. Additionally, the US Energy Information Administration (EIA) reported that the US crude inventories fell by 3.44mn bls in the week ended 26 July 2024.
- At 05:30 SAST today, gold prices declined 0.1% to trade at $2,443.41/oz. Yesterday, gold gained 1.6% to close at $2,445.85/oz.
- Yesterday, copper rose 3.3% to close at $9,102.13/mt. Aluminium closed 3% higher at $2,290.20/mt.
CURRENCIES
- Yesterday, the South African rand strengthened against the US dollar. In the US, the ADP employment rose less than expected in July. Moreover, pending home sales rose more than expected in July. Meanwhile, the MBA mortgage applications declined in the week ended 26 July 2024.
- The yield on benchmark government bonds fell yesterday. The yield on the 2030 bond declined to 9.36%, while that for the longer-dated 2040 issue fell to 11.49%.
- At 05:30 SAST, the US dollar is trading 0.1% higher against the South African rand at R18.2294, while the euro is trading 0.2% higher at R19.7456. At 05:30 SAST, the British pound has gained 0.1% against the South African rand to trade at R23.4336.
- Yesterday, the euro mostly declined against most of the major currencies. In Germany, the unemployment rate increased more than expected in July, as a weakening economy curtailed job growth at the beginning of the summer break. In the eurozone, consumer price inflation unexpectedly rose in July.
- At 05:30 SAST, the euro advanced 0.1% against the US dollar to trade at $1.0833, while it has marginally gained against the British pound to trade at GBP0.8426.
ECONOMIC UPDATES
- In South Africa, the trade surplus widened to R24.23bn in June, compared to a revised surplus of R19.96bn recorded in the prior month.
- In Italy, the consumer price index (CPI) rose 0.5% on a MoM basis in July, more than market expectations for a rise of 0.2%. The CPI had recorded a rise of 0.1% in the prior month.
- In Italy, the producer price index (PPI) advanced 0.7% on a MoM basis in June, compared to a rise of 0.3% recorded in the previous month.
- In Germany, the unemployment rate remained unchanged at 6.0% In July, in line with market expectations.
- In the eurozone, the CPI recorded a flat reading on a MoM basis in July, compared to a rise of 0.2% recorded in the previous month.
- In the US, the MBA mortgage applications dropped 3.9% in the week ended 26 July 2024, compared to a drop of 2.2% recorded in the previous week.
- In the US, the ADP employment rose by 122.00K in July, less than market expectations for a rise of 150.00K. The ADP employment had recorded a revised rise of 155.00K in the previous month.
- In the US, the Chicago PMI fell to a level of 45.30 in July, less than market expectations for a drop to a level of 44.50. The Chicago PMI had recorded a level of 47.40 in the previous month.
- In the US, pending home sales rose 4.8% on a MoM basis in June, more than market expectations for a rise of 1.3%. Pending home sales had recorded a revised drop of 1.9% in the previous month.
- The US Fed kept its key interest rate unchanged at 5.5%, in line with market expectations.
- In Canada, gross domestic product (GDP) rose 0.2% on a MoM basis in May, more than market expectations for a rise of 0.1%. GDP had advanced 0.3% in the previous month.
- In Japan, the Jibun Bank manufacturing PMI unexpectedly declined to a level of 49.10 in July, compared to a level of 50.00 recorded in the previous month.
- In China, the Caixin manufacturing PMI fell to a level of 49.80 in July, more than market expectations for a fall to a level of 51.50. The manufacturing PMI had recorded a level of 51.80 in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- Shaftesbury Capital Plc (JO:SHCJ): The real estate investment trust company, in its 1H24 results, reported that revenue advanced 35.0% from the same period of the preceding year to GBP111.20mn. Its diluted EPS stood at 4.70p, compared with 54.00p recorded in the corresponding period of the previous year.
- Woolworths Holdings Limited (JO:WHLJ): The retail company, in its FY24 trading update, revealed that group turnover and concession sales from continuing operations increased 6.2% as compared with the previous year. Sales grew by 4.3%, and by 3.2% in the comparable second half of the year. Online sales grew by 13.3% and contributed 9.2% to Group sales for the year. For FY24, the company expects EPS to be between 32.0% to 37.0%, lower as compared with 421.10c recorded in the previous year. Also, it expects HEPS to be between 14.0% to 19.0%, lower as compared with the previous year. Further, the company intends to release its results on or about 4 September 2024.
- AECI Limited (JO:AFEJ): The chemicals company, in its 1H24 results, reported that revenue fell to R17.58bn from R18.40bn posted in the same period of the preceding year. Its diluted EPS decreased 61.6% from the corresponding period of the previous year to 229.00c.
- Altron Limited (JO:AELJ): The technology company, in its 1H24 trading and operational update, revealed that it expects group EPS and HEPS to be at least 20% higher as compared with the previous year. Moreover, the Own Platforms segment delivered a strong year-to-date performance with Altron FinTech, Altron HealthTech and Netstar growing revenue, together with notable growth in EBITDA and operating profit. Furthermore, within the IT Services segment, Altron Digital Business delivered year-to-date revenue growth in line with the market. The company intends to release its financial results on or about 4 November 2024.
- Oil rebounds after death of Hamas leader Ismail Haniyeh in Iran: Oil futures rebounded more than $1.00 a barrel from seven-week lows after the killing of Hamas leader Ismail Haniyeh in Iran ratcheted up tensions in the Middle East, but prices stayed under pressure from concerns about weak China demand.