SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green yesterday, buoyed by gains in mining and food sector stocks.
- Diversified miners, Kumba Iron Ore (JO:KIOJ), Anglo American (JO:AGLJ) (LON:AAL) and Exxaro Resources (JO:EXXJ) jumped 4.0%, 3.5% and 1.2%, respectively.
- Platinum miners, Impala Platinum (JO:IMPJ) and Anglo American Platinum (JO:AMSJ) advanced 2.9% and 1.1%, respectively.
- Food companies, Famous Brands (JO:FBRJ), RFG Holdings (JO:RFGJ) and RCL Foods (JO:RCLJ) gained 2.6%, 2.0% and 1.5%, respectively.
- Insurance companies, Sanlam (JO:SLMJ), Old Mutual (JO:OMUJ) and Discovery increased 2.5%, 2.1% and 1.5%, respectively.
- Retailers, Shoprite Holdings (JO:SHPJ), Cie Financiere Richemont S.A. (JO:CFRJ), Pick ‘n Pay Stores (JO:PIKJ) and Clicks Group (JO:CLSJ) rose 2.4%, 2.3%, 1.2% and 1.1%, respectively, Property developers, Emira Property Fund (JO:EMIJ), Growthpoint Properties (JO:GRTJ) and Attacq (JO:ATTJ) added 2.3%, 1.7% and 1.4%, respectively.
- The JSE All Share index advanced 1.4% to close at 85,731.50.
UK MARKET REVIEW
- The UK market finished firmer yesterday, boosted by weakness in the British Pound.
- Defense and aerospace companies, Rolls-Royce Holdings (LON:RR) and BAE Systems (LON:BAES) jumped 2.6% and 2.3%, respectively.
- Insurance companies, Admiral Group (LON:ADML), Prudential (LON:PRU) and Legal & General Group (LON:LGEN) advanced 1.8%, 1.2% and 1.0%, respectively.
- Miners, Anglo American (JO:AGLJ) and Antofagasta (LON:ANTO) gained 1.7% and 0.7%, respectively.
- Retailers, Next (LON:NXT), Marks & Spencer Group (LON:MKS) and JD Sports Fashion (LON:JD) rose 1.3%, 1.0% and 0.9%, respectively.
- On the other hand, homebuilders, Vistry Group (LON:VTYV), Taylor Wimpey (LON:TW) and Persimmon (LON:PSN) dropped 3.9%, 1.4% and 1.3%, respectively.
- Energy companies, BP (LON:BP) and Shell (LON:RDSa) declined 1.1% and 0.7%, respectively.
- The FTSE 100 index advanced 0.3% to close at 8,312.89.
US MARKET REVIEW
- US markets ended mostly higher yesterday, buoyed by gains in technology sector stocks and as investor await key US economic data due this week.
- Technology companies, Broadcom (NASDAQ:AVGO), Microsoft Corporation (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) advanced 2.7%, 1.8% and 1.0%, respectively.
- On the contrary, pharmaceutical companies, Amgen (NASDAQ:AMGN), Pfizer (NYSE:PFE) and Merck & Company (NYSE:MRK) dropped 1.7%, 1.5% and 1.0%, respectively.
- Financial services companies, JPMorgan Chase & Co. (NYSE:JPM), American Express (NYSE:AXP) and Goldman Sachs Group (NYSE:GS) declined 1.4%, 0.8% and 0.6%, respectively.
- Energy companies, Diamondback Energy (NASDAQ:FANG) and Devon Energy Corporation (NYSE:DVN) fell 1.0% and 0.9%, respectively.
- The S&P 500 index rose 0.2% to settle at 6,047.15, while the DJIA index declined 0.3% to close at 44,782.00.
- The NASDAQ index climbed 1.0% to end the trading session at 19,403.95.
ASIA MARKET REVIEW
- Asian markets are trading mostly higher this morning, tracking overnight gains on Wall Street.
- In Japan, transportation company, Kawasaki Kisen Kaisha (TYO:9107) has jumped 5.3%.
- On the flipside, pharmaceutical company, Sumitomo Pharma (TYO:4506) has shed 3.2%.
- In Hong Kong, automobile company, Li Auto (NASDAQ:LI) has declined 2.2%.
- On the other hand, consumer electronics company, Xiaomi Corporation (HK:1810) has gained 1.4%.
- In South Korea, cosmetic products company, Hankook Cosmetics (KS:003350) Manufacturing has surged 12.3%.
- On the contrary, construction company, Bumyang Construction (KS:002410) has dropped 5.5%.
- The Nikkei 225 index is trading 1.7% higher at 39,180.06.
- The Hang Seng index has declined 0.1% to trade at 19,520.97, while the Kospi index is trading 1.8% higher at 2,497.37.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 0.1% to trade at $71.74/bl.
- Yesterday, Brent prices fell 1.5% to settle at $71.83/bl, amid concerns that the US Federal Reserve (Fed) would not cut interest rates in December.
- At 05:30 SAST today, gold prices marginally advanced to trade at $2,639.19/oz. Yesterday, gold declined 0.6% to close at $2,638.93/oz, as a stronger greenback boosted demand for the safe haven yellow metal.
- Yesterday, copper declined 0.2% to close at $8,874.13/mt. Aluminium closed 0.4% higher at $2,603.25/mt.
CURRENCIES
- Yesterday, the South African rand weakened against the US dollar. In the US, the ISM manufacturing PMI rose more than expected in November.
- The yield on benchmark bonds rose yesterday. The yield on the SA 10-year generic bond advanced to 10.19%, while that for SA 20-year generic bond rose to 10.96%.
- At 05:30 SAST, the US dollar is trading 0.3% higher against the South African rand at R18.1833, while the euro is trading 0.2% higher at R19.071. At 05:30 SAST, the British pound has gained 0.2% against the South African rand to trade at R22.9867.
- Yesterday, the euro declined against most of the major currencies. In the eurozone, the HCOB manufacturing PMI contracted further in November, following drop in factory orders, production and purchasing activity. Meanwhile, the unemployment rate remained unchanged in October, in line with market expectations. In the UK, the S&P Global manufacturing PMI recorded its sharpest decline in nine months in November, amid drop in output and new orders. Moreover, the BRC Like-for-Like retail sales unexpectedly dropped in November.
- At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.0489, while it has marginally weakened against the British pound to trade at GBP0.8298.
ECONOMIC UPDATES
- In the UK, the S&P Global manufacturing PMI fell to a level of 48.00 in November, more than market expectations for a drop to a level of 48.60. The manufacturing PMI had recorded a level of 49.90 in the previous month.
- In the UK, the BRC Like-for-Like retail sales unexpectedly dropped 3.4% on a YoY basis in November, compared to a rise of 0.3% recorded in the previous month.
- In Switzerland, real retail sales rose 1.4% on a YoY basis in October, less than market expectations for a rise of 2.7%. Real retail sales had recorded a revised rise of 1.8% in the previous month.
- In Switzerland, the SVME PMI fell to a level of 48.50 in November, more than market expectations for a drop to a level of 49.50. The SVME PMI had recorded a level of 49.90 in the prior month.
- In Spain, the HCOB manufacturing PMI dropped more than expected to a level of 53.10 in November. The manufacturing PMI had recorded a level of 54.50 in the prior month.
- In Italy, the HCOB manufacturing PMI declined to a level of 44.50 in November, more than market expectations for a drop to a level of 46.10. The HCOB manufacturing PMI had recorded a level of 46.90 in the previous month.
- In Italy, the unemployment rate unexpectedly fell to 5.8% in October, compared to 6.1% recorded in the prior month.
- In Italy, gross domestic product (GDP) recorded a flat reading on a QoQ basis in 3Q24, in line with market expectations. GDP had recorded a rise of 0.2% in the previous quarter.
- In France, the HCOB manufacturing PMI eased to a level of 43.10 in November, more than market expectations for a drop to a level of 43.20. The HCOB manufacturing PMI had recorded a level of 44.50 in the previous month.
- In Germany, the HCOB manufacturing PMI unexpectedly remained unchanged at a level of 43.00 in November, compared to market expectations for rise to a level of 43.20.
- In the eurozone, the HCOB manufacturing PMI dropped to a level of 45.20 in November, in line with market expectations and compared to a level of 46.00 in the previous month.
- In the eurozone, the unemployment rate remained unchanged at 6.3% in October, in line with market expectations.
- In the US, the S&P Global manufacturing PMI advanced to a level of 49.70 in November, more than market expectations for a rise to a level of 48.80. The manufacturing PMI had recorded a level of 48.50 in the prior month.
- In the US, the ISM manufacturing PMI climbed to a level of 48.40 in November, more than market expectations for a rise to a level of 47.50. The ISM manufacturing PMI had recorded a level of 46.50 in the previous month.
- In Canada, the S&P Global manufacturing PMI unexpectedly rose to a level of 52.00 in November, compared to a level of 51.10 recorded in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- Prosus N.V. (JO:PRXJn): The internet services company, in its 1H25 results, stated that revenue increased to $2.96bn from $2.56bn posted in the corresponding period of the previous year. Its diluted EPS rose 45.3% from the same period of the prior year to 186.00 US cents.
- Naspers Limited (JO:NPNJn): The internet technology company, in its 1H25 results, reported that revenue from continuing operations advanced 14.5% from the same period of the preceding year to $3.44bn. Its diluted EPS rose to 1,061.00 US cents, compared with 736.00 US cents recorded in the corresponding period of the previous year.
- Standard Bank Group Limited (JO:SBKJ): The banking company, in its trading update for the ten months to 31 October 2024, revealed that the group experienced robust operational and financial performance, with headline earnings growing by low-to-mid single digits in South African Rand and mid-teens in constant currency. Currency devaluations in African markets and a stronger South African Rand impacted revenue growth but benefited operating expenses and credit impairment charges. Net interest income growth slowed to low-to-mid single digits as compared with the previous year, whereas non-interest revenue declined by low-to-mid single digits, as continued growth in fees and commissions was more than offset by a decline in trading revenue. Moreover, the company intends to release its financial results for FY24 in March 2025.
- Upbeat Chinese data supports oil: Oil prices rose, supported by upbeat factory activity in China, the world’s second-largest oil consumer, and as Israel resumed attacks on Lebanon despite a ceasefire pact, stoking tension in the Middle East.