SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green yesterday, driven by a rise in consumer staple stocks.
- Food companies, Tiger Brands (JO:TBSJ), Super Group, Famous Brands (JO:FBRJ), AVI (JO:AVIJ) and Astral Foods (JO:ARLJ) advanced 6.5%, 3.6%, 3.3%, 2.6% and 2.0%, respectively.
- Engineering companies, Raubex Group (JO:RBXJ) and Wilson Bayly Holmes-Ovcon (JO:WBOJ) surged 5.8% and 3.2%, respectively.
- Real estate companies, Redefine Properties (JO:RDFJ), Hyprop Investments (JO:HYPJ), Vukile Property Fund (JO:VKEJ) and SA Corporate Real Estate Fund (JO:SACJ) gained 5.5%, 4.7%, 3.1% and 1.9%, respectively.
- Retailers, Italtile (JO:ITEJ), Pepkor Holdings (JO:PPHJ), Cashbuild (JO:CSBJ), Spar Group (JO:SPPJ), Shoprite Holdings (JO:SHPJ) and Mr Price Group (JO:MRPJ) jumped 4.7%, 4.4%, 3.9%, 3.1%, 2.6% and 1.9%, respectively.
- The JSE All Share index closed 0.2% higher at 79,853.83.
UK MARKET REVIEW
- The UK market closed firmer yesterday, supported by gains in mining and home building sector stocks.
- Miners, Glencore (LON:GLEN), BHP Group (JO:BHPJ) and Rio Tinto (LON:RIO) gained 2.4%, 1.1% and 0.6%, respectively.
- However, peer, Anglo American (LON:AAL) shed 2.8%, after suspending production at its Australian metallurgical coal mine due to an underground fire there on Saturday.
- Banks, Standard Chartered (LON:STAN), Barclays (LON:BARC) and Lloyds Banking Group (LON:LLOY) surged 2.3%, 2.1% and 1.6%, respectively.
- Energy utility companies, Centrica (LON:CNA) and SSE (LON:SSE) added 1.4% and 0.5%, respectively. Retailers, Kingfisher (LON:KGF) and Next rose 1.1% and 0.9%, respectively.
- The FTSE 100 index marginally advanced to close at 8,166.76.
US MARKET REVIEW
- US markets closed higher yesterday in anticipation of crucial labor market data that could influence interest rate outlook.
- Automotive company, Tesla (NASDAQ:TSLA) surged 6.1%, ahead of its second-quarter vehicle delivery data.
- Technology companies, Apple (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) and International Business Machines Corporation (NYSE:IBM) gained 2.9%, 2.2% and 1.2%, respectively.
- Financial services company, JPMorgan Chase (NYSE:JPM) advanced 1.6% following the board's authorization of a $30 billion share buyback program, effective 1 July.
- The S&P 500 index rose 0.3% to settle at 5,475.09, while the DJIA index added 0.1% to close at 39,169.52.
- The NASDAQ index advanced 0.8% to end the trading session at 17,879.30.
ASIA MARKET REVIEW
- Asian markets are trading mostly higher this morning.
- In Japan, bank holding company, Mitsubishi UFJ Financial Group (TYO:8306) has added 3.2%, while advertising company, Dentsu Group has dropped 2.3%.
- In Hong Kong, automobile company, Li Auto (NASDAQ:LI) has surged 5.6%. On the flipside, Zhongsheng Group Holdings (HK:0881) has shed 2.6%.
- In South Korea, cosmetics company, Jayjun Cosmetic (KS:025620) Co. has dropped 7.0%.
- On the contrary, electrical machinery manufcaturing company, HD Hyundai Electric Co. has advanced 8.6%.
- The Nikkei 225 index is trading 0.4% higher at 39,780.58.
- The Hang Seng index has advanced 0.3% to trade at 17,779.14, while the Kospi index is trading 0.8% lower at 2,781.73.
COMMODITIES
- At 05:30 SAST today, Brent prices rose 0.3% to trade at $86.82/bl.
- Yesterday, Brent prices rose 0.2% to settle at $86.60/bl, driven by hopes for higher demand during the Northern Hemisphere's summer driving season and concerns about the potential spread of conflict in the Middle East.
- At 05:30 SAST today, gold prices declined 0.1% to trade at $2,329.78/oz. Yesterday, gold gained 0.3% to close at $2,332.35/oz, supported by increased demand for the safe haven yellow metal due to a weaker dollar.
- Yesterday, copper rose 0.1% to close at $9,482.60/mt. Aluminium closed 0.4% lower at $2,515.70/mt.
CURRENCIES
- Yesterday, the South African rand weakened against the US dollar. In South Africa, manufacturing activity continued to contract in June. Separately, in the US, the ISM manufacturing activity unexpectedly contracted at a slightly faster rate in June.
- The yield on benchmark government bonds were unchanged yesterday. The yield on the 2030 bond stood at 9.93%, while that for the longer-dated 2040 issue stood at 12.02%.
- At 05:30 SAST, the US dollar is trading 0.1% higher against the South African rand at R18.3991, while the euro is trading 0.1% higher at R19.7489. At 05:30 SAST, the British pound has marginally declined against the South African rand to trade at R23.2450.
- Yesterday, the euro mostly advanced against most of the major currencies. In Germany, consumer price inflation slowed more than expected in June. In the eurozone, manufacturing activity contracted in June with decreases in output, new orders and employment.
- At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.0735, while it has gained 0.1% against the British pound to trade at GBP0.8497.
ECONOMIC UPDATES
- In the UK, seasonally adjusted house prices index climbed 0.2% on a YoY basis in June. In the prior month, house prices had climbed 0.4%.
- In the UK, the final manufacturing PMI unexpectedly declined to a level of 50.90 in June. In the prior month, the manufacturing PMI had recorded a level of 51.20.
- In Switzerland, real retail sales climbed 0.4% on a YoY basis in May. In the previous month, real retail sales had advanced by a revised 2.2%.
- In Spain, the manufacturing PMI dropped to a level of 52.30 in June, compared to a level of 54.00 recorded in the prior month.
- In Italy, the manufacturing PMI registered a rise to a level of 45.70 in June, compared to a level of 45.60 recorded in the prior month.
- In France, the final manufacturing PMI dropped to a level of 45.40 in June, compared to a level of 46.40 in the previous month. Market anticipations were for the manufacturing PMI to fall to a level of 45.30.
- In Germany, the consumer price index (CPI) climbed 0.1% on a MoM basis in June, less than market expectations and compared to a rise of 0.1% recorded in the prior month.
- In Germany, the final manufacturing PMI dropped to a level of 43.50 in June, less than market expectations for a drop to a level of 43.40. In the previous month, the manufacturing PMI had registered a level of 45.40.
- In the eurozone, the final manufacturing PMI eased to a level of 45.80 in June, compared to a level of 47.30 in the previous month. Markets were expecting the manufacturing PMI to drop to a level of 45.60.
- In the US, the final Markit manufacturing PMI climbed to a level of 51.60 in June, compared to a level of 51.30 in the prior month.
- In the US, the ISM manufacturing activity index unexpectedly dropped to a level of 48.50, compared to a level of 48.70 in the prior month.
- In Japan, the consumer confidence index registered a rise to a level of 36.40 in June, less than market expectations for a rise to a level of 36.50. In the previous month, the consumer confidence index had recorded a level of 36.20.
CORPORATE UPDATES
SOUTH AFRICA
- Clicks Group Limited (JO:CLSJ): The retail company announced that it is divesting its total shareholding in the manufacturing pharmacy, Unicorn Pharmaceuticals (Pty) Ltd. The sale of the Unicorn shareholding is expected be completed by the end of July 2024.
- Dis-Chem (JO:DCPJ) enhances IT security after data breach debacle: Dis-Chem has fortified its IT infrastructure after a data breach in 2022 that compromised the personal information of over 3-million customers.
- Maersk (CSE:MAERSKa) keeps Transnet tender after MSC’s legal challenge: Mediterranean Shipping Company’s (MSC) legal bid to overturn a multiyear contract between Transnet and rival Maersk to develop vacant land at Transnet Park, aimed at increasing rail capacity between Belcon precinct and the embattled Port of Cape Town, has been dismissed.
- IHS addresses shareholder concerns after MTN (JO:MTNJ) action: IHS shareholders have approved the governance reforms agreed with Wendel, the group’s second-largest investor, in turn rectifying some of the issues that had been raised by MTN, its biggest shareholder.
- Mr Price changes the way it pays staff: Retail giant Mr Price Group has refined its remuneration structure to align with industry best practices.