South Africa Market Review
- South African markets closed in the green on Friday, buoyed by gains in property and banking sector stocks.
- Property developers, Emira Property Fund (JO:EMIJ), Shaftesbury Capital and Growthpoint Properties (JO:GRTJ) climbed 3.8%, 3.0% and 2.6%, respectively.
- Lenders, Capitec Bank Holdings (JO:CPIJ), Standard Bank Group (JO:SBKJ), FirstRand (JO:FSRJ) and Nedbank (JO:NEDJ) advanced 2.5%, 2.2%, 1.5% and 1.4%, respectively.
- Food companies, Famous Brands (JO:FBRJ) and Tiger Brands (JO:TBSJ) gained 2.1% and 0.9%, respectively.
- Pharmaceutical companies, Aspen Pharmacare (JO:APNJ), Life Healthcare Group (JO:LHCJ) and Netcare (JO:NTCJ) rose 1.5%, 1.2% and 0.8%, respectively.
- Retailers, Cie Financiere Richemont SA (JO:CFRJ), Mr Price Group (JO:MRPJ) and Shoprite Holdings (JO:SHPJ) added 1.8%, 1.4% and 0.7%, respectively.
- The JSE All Share index advanced 1.5% to close at 76,027.83.
UK Market Review
- The UK market finished firmer on Friday, amid positive domestic economic data.
- Retailers, Ocado Group (LON:OCDO), Burberry Group (LON:BRBY), JD Sports Fashion (LON:JD) and Next (LON:NXT) gained 5.2%, 1.6%, 1.5% and 1.3%, respectively.
- Energy companies, Centrica (LON:CNA) and SSE (LON:SSE) advanced 3.3% and 1.0%, respectively.
- Insurance companies, Prudential (LON:PRU), Aviva (LON:AV) and Legal & General Group (LON:LGEN) jumped 2.4%, 1.8% and 1.3%, respectively.
- Banking firms, NatWest Group (LON:NWG), Lloyds Banking Group (LON:LLOY) and Barclays (LON:BARC) rose 2.3%, 1.9% and 1.4%, respectively.
- Miners, Fresnillo (LON:FRES), Glencore (JO:GLNJ) and Antofagasta (LON:ANTO) added 2.1%, 1.4% and 1.1%, respectively.
- On the other hand, water utilities companies, United Utilities Group (LON:UU) and Severn Trent (LON:SVT) declined 1.5% and 1.0%, respectively.
- The FTSE 100 index advanced 0.8% to close at 7,531.53.
US Market Review
- US markets ended higher on Friday, amid signs of cooling inflation.
- Cruise companies, Carnival Corporation (NYSE:CCL) and Norwegian Cruise Line (NYSE:NCLH) jumped 9.7% and 4.2%, respectively.
- Technology company, Apple (NASDAQ:AAPL) advanced 2.3%, with the company crossing the $3.00tn mark for the first time since January 2022.
- Peers, Microsoft (NASDAQ:MSFT) and Intel (NASDAQ:INTC) gained 1.6%, each. Financial services companies, JPMorgan Chase (NYSE:JPM) and American Express (NYSE:AXP) rose 1.4% and 1.2%, respectively.
- On the contrary, athletic wear company, Nike (NYSE:NKE) declined 2.7%, after the company reported less than expected profits in 4Q23 amid a drop in demand for sneakers and clothing.
- The S&P 500 index rose 1.2% to settle at 4,450.38, while the DJIA index advanced 0.8% to close at 13,787.92.
- The NASDAQ index climbed 1.4% to end the trading session at 13,787.92.
Asia Market Review
- Asian markets are trading higher this morning.
- In Japan, electronics company, Sharp Corporation (TYO:6753) has advanced 4.5%.
- On the flipside, financial services company, Concordia Financial Group (TYO:7186) has eased 0.7%.
- In Hong Kong, automobile company, Geely Automobile (HK:0175) has gained 2.6%.
- On the other hand, pharmaceutical company, CSPC Pharmaceutical (HK:1093) has shed 1.3%.
- In South Korea, chemicals company, Hannong Chemicals (KS:011500) has jumped 11.8%.
- On the contrary, pharmaceutical company, Hyundai Pharmaceutical (KS:004310) has dropped 4.1%.
- The Nikkei 225 index is trading 1.6% higher at 33,704.73.
- The Hang Seng index has gained 1.4% to trade at 19,174.07, while the Kospi index is trading 1.3% higher at 2,598.43.
Commodities
- At 05:30 SAST today, Brent prices rose 0.7% to trade at $75.43/bl.
- On Friday, Brent prices rose 0.8% to settle at $74.9/bl, amid concerns that a slowdown in global economy would dampen fuel demand. Additionally, Baker Hughes reported that the US oil rigs count declined by 1 to 545 in the week ended 30 June 2023.
- At 05:30 SAST today, gold prices declined 0.2% to trade at $1,916.44/oz. On Friday, gold gained 0.6% to close at $1,919.57/oz.
- On Friday, copper rose 0.5% to close at $8,210.00/mt. Aluminium closed 0.4% lower at $2,150.65/mt.
Currencies
- On Friday, the South African rand weakened against the US dollar. In South Africa, trade surplus expanded in May. Separately, in the US, personal income increased in line with market expectations in May. Moreover, the Chicago purchasing manager’s index rose in June. Furthermore, the Michigan consumer sentiment index improved more than expected in June.
- The yield on benchmark government bonds rose on Friday. The yield on 2026 bond rose to 9.19%. Further, the yield on the longer-dated 2030 issue rose to 10.51%.
- At 05:30 SAST, the US dollar is trading 0.2% lower against the South African rand at R18.8227, while the euro is trading 0.2% lower at R20.5314. At 05:30 SAST, the British pound has declined 0.1% against the South African rand to trade at R23.9055.
- On Friday, the euro mostly advanced against most of the major currencies. In Germany, retail sales advanced for a second consecutive month in May, amid increase in non-food sales. Also, the unemployment rate rose more than expected in June. In the eurozone, inflation slowed in June amid drop in energy prices. In the UK, the gross domestic product (GDP) expanded modestly in the 1Q24.
- At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.0908, while it has marginally weakened against the British pound to trade at GBP0.8593.
Economic Updates
- In South Africa, trade surplus expanded to a level of R10.20bn in May, more than market expectations and compared to a revised surplus of R3.97bn recorded in the previous month.
- In the UK, gross domestic product (GDP) rose 0.1% on a QoQ basis in 1Q23, in line with market expectations. GDP had recorded a similar rise in the previous quarter.
- In the UK, seasonally adjusted nationwide housing prices unexpectedly rose 0.1% on a MoM basis in June, compared to a drop of 0.1% recorded in the previous month.
- In Switzerland, the KOF leading indicator dropped to a level of 90.80 in June, more than market expectations for a drop to a level of 86.40. The KOF leading indicator had recorded a level of 91.40 in the prior month.
- In Germany, retail sales rose 0.4% on a MoM basis in May, compared to a rise of 0.8% recorded in the previous month.
- In Germany, the unemployment rate rose to 5.7% in May, compared to 5.6% recorded in the previous month.
- In the eurozone, the consumer price index (CPI) climbed of 0.3% on a MoM basis in June, compared to a flat reading recorded in the previous month.
- In the eurozone, the preliminary CPI advanced 5.5% on a YoY basis in June, less than market expectations for a rise of 5.6%. The CPI had climbed 6.1% in the previous month.
- In the eurozone, the unemployment rate remained unchanged at 6.5% in May, in line with market expectations.
- In the US, the Chicago Purchasing Manager’s Index rose to a level of 41.50 in June, less than market expectations for a rise to a level of 44.00. The Chicago Purchasing Manager’s Index had recorded a level of 40.40 in the prior month.
- In the US, the Michigan consumer sentiment index rose to a level of 64.40 in June, more than market expectations and compared to a level of 59.20 recorded in the previous month.
- In Japan, the Jibun bank manufacturing PMI dropped to a level of 49.80 in June, in line with market expectations. The manufacturing PMI had recorded a level of 50.60 in the previous month.
- In China, the Caixin manufacturing PMI dropped to a level of 50.50 in June, less than market expectations for a drop to a level of 50.20. The manufacturing PMI had recorded a level of 50.90 in the previous month.
- In Australia, the manufacturing PMI unexpectedly dropped to a level of 48.20 in June, compared to a level of 48.40 recorded in the previous month.
Corporate Updates
South Africa
- Hudaco Industries Limited (JO:HDCJ): The branded automotive, industrial and electronic consumables importation and distribution company, in its 1H23 results, announced that its turnover rose to R4.25bn from R3.78bn posted in the corresponding period of the previous year. Its diluted EPS increased 9.7% from the same period of the prior year to R8.78.
- Oil prices set for fourth consecutive quarter of losses: Oil prices rose above $75 a barrel but were on course for a fourth consecutive quarter of losses amid concerns over sluggish global economic activity and fuel demand.