SOUTH AFRICA MARKET REVIEW
- South African markets closed in the red on Friday, led by losses in mining sector stocks.
- Platinum miners, Northam Platinum (JO:NPHJ), Impala Platinum (JO:IMPJ) and Anglo American Platinum (JO:AMSJ) dropped 9.3%, 6.5% and 6.0%, respectively.
- Telecommunications companies, Blue Label Telecoms (JO:BLUJ), MTN Group (JO:MTNJ) and Vodacom Group (JO:VODJ) declined 6.1%, 4.0% and 1.3%, respectively.
- Gold miners, Sibanye Stillwater (JO:SSWJ), Harmony Gold Mining Company (JO:HARJ) and Gold Fields (JO:GFIJ) shed 5.7%, 4.8% and 2.0%, respectively.
- Property developers, Burstone Group (JO:BTNJ), Resilient REIT (JO:RESJ) and Emira Property Fund (JO:EMIJ) fell 2.4%, 1.6% and 1.3%, respectively.
- On the flipside, retailers, Pick ‘n Pay Stores (JO:PIKJ) and Clicks Group (JO:CLSJ) advanced 3.5% and 2.0%, respectively.
- The JSE All Share index declined 0.6% to close at 83,749.86.
UK MARKET REVIEW
- The UK market finished weaker on Friday, weighed down by losses in energy sector stocks.
- Energy companies, BP (LON:BP) and Shell (LON:RDSa) dropped 1.2% and 1.1%, respectively.
- Travel and leisure companies, Whitbread (LON:WTB) and InterContinental Hotels Group (LON:IHG) declined 1.8% and 0.7%, respectively.
- Defense and aerospace companies, Rolls-Royce Holdings (LON:RR) and BAE Systems (LON:BAES) eased 0.8% and 0.7%, respectively.
- On the other hand, real estate companies, LondonMetric Property (LON:LMPL), Land Securities Group (LON:LAND), Barratt Developments (LON:BDEV) and Taylor Wimpey (LON:TW) advanced 2.6%, 2.0%, 1.0% and 0.8%, respectively.
- Water utilities companies, Severn Trent (LON:SVT) and United Utilities Group (LON:UU) gained 1.5% and 0.6%, respectively.
- The FTSE 100 index marginally declined to close at 8,376.63.
US MARKET REVIEW
- US markets ended higher on Friday, as robust US economic data raised expectations for rate cuts in September.
- Semiconductor chip companies, Intel Corporation (NASDAQ:INTC), Broadcom (NASDAQ:AVGO) and Qualcomm (NASDAQ:QCOM) jumped 9.5%, 3.8% and 3.4%, respectively.
- Biotechnology company, Novavax (NASDAQ:NVAX) surged 8.6%, after the US Food and Drug Administration granted emergency use authorization for an updated version of its COVID shot.
- On the contrary, cosmetics company, Ulta Beauty (NASDAQ:ULTA) dropped 4.0%, after the company slashed its annual sales and profit forecasts, citing slowing demand for higher-priced cosmetics and fragrances at its stores.
- The S&P 500 index rose 1.0% to settle at 5,648.40, while the DJIA index advanced 0.6% to close at 41,563.08.
- The NASDAQ index climbed 1.1% to end the trading session at 17,713.63.
ASIA MARKET REVIEW
- Asian markets are trading mostly higher this morning.
- In Japan, chemical company, Mitsubishi Chemical (TYO:4188) has advanced 2.6%.
- On the flipside, pharmaceutical company, Sumitomo Pharma (TYO:4506) has dropped 6.3%.
- In Hong Kong, automobile company, Li Auto (NASDAQ:LI) has declined 4.3%.
- On the other hand, automobile dealership company, Zhongsheng Group Holdings (HK:0881) has gained 1.6%.
- In South Korea, capacitors and condensers company, SungMoon Electronics (KS:014915) has surged 14.9%.
- On the contrary, paper products company, Shin Poong Paper Manufacturing (KS:002870) has shed 6.2%.
- The Nikkei 225 index is trading 0.2% higher at 38,709.88.
- The Hang Seng index has declined 1.8% to trade at 17,670.46, while the Kospi index is trading 0.1% higher at 2,677.45.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 3.2% to trade at $76.25/bl.
- On Friday, Brent prices fell 1.4% to settle at $78.80/bl, after the Organization of the Petroleum Exporting Countries (OPEC+) announced plans to proceed with a planned oil output hike from October. Additionally, the Baker Hughes reported that oil rigs count remained unchanged at 483 in the week ended 30 August 2024.
- At 05:30 SAST today, gold prices declined 0.3% to trade at $2,495.18/oz. On Friday, gold declined 0.7% to close at $2,503.45/oz.
- On Friday, copper rose 1.1% to close at $9,214.25/mt. Aluminium closed 0.4% lower at $2,446.80/mt.
CURRENCIES
- On Friday, the South African rand weakened against the US dollar. In South Africa, the trade surplus narrowed in July. In the US, the Chicago PMI rose more than expected in August. Moreover, the Michigan consumer sentiment index improved in August.
- The yield on benchmark bonds rose on Friday. The yield on the 2034 generic bond rose to 10.60%, while that for the longer dated 2044 generic issue advanced to 11.28%
- At 05:30 SAST, the US dollar is trading 0.2% higher against the South African rand at R17.8701, while the euro is trading 0.3% higher at R19.7482. At 05:30 SAST, the British pound has gained 0.2% against the South African rand to trade at R23.4583.
- On Friday, the euro mostly advanced against most of the major currencies. In Germany, the unemployment rate remained unchanged in August, in line with market expectations. In the eurozone, the consumer price index (CPI) advanced in August. Meanwhile, the unemployment rate unexpectedly declined in July.
- At 05:30 SAST, the euro marginally advanced against the US dollar to trade at $1.1055, while it has slightly weakened against the British pound to trade at GBP0.8419.
ECONOMIC UPDATES
- In South Africa, trade surplus narrowed to R17.61bn in July, compared to a revised surplus of R24.19bn recorded in the previous month.
- In the UK, seasonally adjusted nationwide housing prices unexpectedly dropped 0.2% on a MoM basis in August, compared to a rise of 0.3% recorded in the previous month.
- In France, gross domestic product (GDP) rose 0.2% on a QoQ basis in 2Q24, less than market expectations for a rise of 0.3%. GDP had advanced 0.2% in the previous quarter.
- In Italy, the consumer price index (CPI) rose 0.2% on a MoM basis in August, less than market expectations for a rise of 0.3%. The CPI had advanced 0.4% in the previous month.
- In Italy, the business confidence index dropped more than expected to a level of 87.10 in August. The business confidence index had recorded a level of 87.60 in the prior month.
- In Italy, the consumer confidence index unexpectedly declined to a level of 96.10 in August, compared to a level of 98.90 recorded in the prior month.
- In Italy, the unemployment rate unexpectedly fell to 6.5% in July, compared to a revised 6.9% recorded in the previous month.
- In Germany, the unemployment rate remained unchanged at 6.0% in August, in line with market expectations.
- In the eurozone, the CPI rose 0.2% on a MoM basis in August, compared to a flat reading recorded in the previous month.
- In the eurozone, the unemployment rate unexpectedly fell to 6.4% in July, compared to 6.5% recorded in the previous month.
- In the US, the Chicago PMI climbed to a level of 46.10 in August, more than market expectations for a rise to a level of 45.50. The Chicago PMI had recorded a level of 45.30 in the prior month.
- In the US, the Michigan consumer sentiment index advanced to a level of 67.90 in August, less than market expectations for a rise to a level of 68.00. The Michigan consumer sentiment index had recorded a level of 66.40 in the prior month.
- In Canada, annualized GDP rose 2.1% in 2Q24, compared to a revised rise of 1.8% recorded in the previous quarter.
- In Japan, the Jibun Bank manufacturing PMI rose to a level of 49.80 in August, more than market expectations for a rise to a level of 49.50. The Jibun Bank manufacturing PMI had recorded a level of 49.10 in the previous month.
- In China, the NBS manufacturing PMI unexpectedly fell to a level of 49.10 in August, compared to a level of 49.40 recorded in the prior month.
- In China, the Caixin manufacturing PMI rose to a level of 50.40 in August, more than market expectations and compared to a level of 49.80 recorded in the prior month.
- In Australia, the Judo Bank manufacturing PMI climbed less than expected to a level of 48.50 in August, compared to a level of 47.50 recorded in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- Northam Platinum Holdings Limited (JO:NPHJ): The platinum mining company, in its FY24 results, reported that revenue declined 22.2% from the preceding year to R30.77bn. Its diluted EPS fell to 461.00c, compared with 654.50c recorded in the previous year.
- Truworths International Limited (JO:TRUJ): The clothing retail company, in its business and trading update for the period ended 30 June 2024, revealed that group retail sales climbed 3.6% to R21.40bn. Truworths Africa saw a 3.2% decline in sales due to a challenging macro environment and lower consumer confidence, while Office UK’s sales grew by 10.8% (in Sterling) and a 21.8% increase (in Rand). The group expects EPS to be between 15.0% to 19.0%, higher as compared with 888.50c recorded in the previous year. Meanwhile, it expects HEPS to be between 5.0% to 9.0%, lower as compared with 873.30c recorded in the previous year. It expects to release its annual results on or about 12 September 2024.
- KAP Limited (JO:KAPJ): The industrial, chemical and logistics company, in its FY24 results, reported a drop in its revenue to R29.06bn from a restated R29.63bn posted in the previous year. Its diluted EPS rose to 43.20c, compared with 20.90c recorded in the previous year.
- Oil edges higher on Middle East supply worries: Oil prices inched higher as investors weighed supply concerns in the Middle East, though signs of weakened demand limited gains.