Market Review, Commodities, Currencies, Economic & Corporate Update - 07.05.24

  • Market Overview

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the green yesterday, encouraged by gains in mining sector stocks.
  • Technology companies, Karooooo (JO: KROJ ), Bytes Technology Group (JO: BYIJ ) and Altron (JO: AELJ ) surged 6.2%, 3.3% and 2.6%, respectively.
  • Platinum miners, Impala Platinum Holdings (JO: IMPJ ), Anglo American Platinum (JO: AMSJ ) and Northam Platinum Holdings (JO: NPHJ ) advanced 5.5%, 2.4% and 0.7%, respectively.
  • Gold miners, Harmony Gold Mining (JO: HARJ ), Sibanye Stillwater (JO: SSWJ ), DRD Gold (JO: DRDJ ) and Gold Fields (JO: GFIJ ) gained 5.1%, 4.8%, 2.4% and 1.3%, respectively.
  • Healthcare companies, Adcock Ingram Holdings (JO: AIPJ ), Life Healthcare Group Holdings (JO: LHCJ ) and Netcare (JO: NTCJ ) added 4.3%, 2.3% and 0.6%, respectively.
  • On the flipside, retailers, Spar Group (JO: SPPJ ), Cashbuild (JO: CSBJ ), Shoprite (JO: SHPJ ) and Woolworths Holdings (JO: WHLJ ) shed 2.2%, 1.3%, 0.8% and 0.7%, respectively.
  • The JSE All Share index added 0.5% to close at 76,776.44.

UK MARKET REVIEW

  • The UK markets were closed yesterday on account of a public holiday. On Friday, the FTSE 100 index gained 0.5% to close at 8,213.49.

US MARKET REVIEW

  • US markets ended in the green for a third consecutive session yesterday, amid rate cuts optimism.
  • Media and entertainment companies, Paramount Global (NASDAQ: PARA ), Netflix (NASDAQ: NFLX ) and Walt Disney (NYSE: DIS ) advanced 4.3%, 3.0% and 2.5%, respectively.
  • Financial services companies, Visa (NYSE: V ), American Express (NYSE: AXP ), Goldman Sachs Group (NYSE: GS ) and JPMorgan Chase & Co. (NYSE: JPM ), gained 1.6%, 1.5%, 1.3% and 0.8%, respectively.
  • Conversely, airlines company, Spirit Airlines (NYSE: SAVE ) plunged 9.7%, after issuing weaker revenue outlook for the 2Q24, due to slower growth in domestic demand.
  • Food processing company, Tyson Foods (NYSE: TSN ) edged down 5.7%, attributing it to concerns about persistent inflation on consumer demand.
  • Meanwhile, the company reported better than expected 2Q24 profit.
  • The S&P 500 index gained 1.0% to settle at 5,180.74, while the DJIA index advanced 0.5% to close at 38,852.27.
  • The NASDAQ index climbed 1.2% to end the trading session at 16,349.25.

ASIA MARKET REVIEW

  • Asian markets are trading mostly higher this morning, reflecting the positive trend seen on Wall Street overnight, driven by expectations of interest rate cuts.
  • In Japan, electronic company, Tokyo Electron (TYO: 8035 ) has advanced 4.6%.
  • On the flipside, banking firm, Shizuoka Financial Group (TYO: 5831 ) has eased 2.6%.
  • In Hong Kong, internet company, NetEase (NASDAQ: NTES ) has shed 4.0%.
  • On the other hand, solar products company, Xinyi Solar Holdings (HK: 0968 ) has gained 1.9%.
  • In South Korea, electronics company, Samsung Electronics (KS: 005930 ) has jumped 3.9%.
  • On the contrary, advertising agency company, Hyundai Futurenet (KS: 005380 ) has dropped 5.9%.
  • The Nikkei 225 index is trading 1.2% higher at 38,688.66.
  • The Hang Seng index has declined 0.7% to trade at 18,455.09, while the Kospi index is trading 1.9% higher at 2,727.80.

COMMODITIES

  • At 05:30 SAST today, Brent prices rose 0.3% to trade at $83.57/bl, after Israel strikes Rafah in Gaza.
  • Yesterday, Brent prices rose 0.4% to settle at $83.33/bl, driven by Israel's rejection of a ceasefire proposal and indications of an imminent assault in the southern Gaza Strip.
  • At 05:30 SAST today, gold prices declined 0.2% to trade at $2,322.15/oz. Yesterday, gold gained 1.1% to close at $2,326.15/oz, as a weaker greenback boosted demand for the precious yellow metal.
  • Yesterday, copper marginally declined to close at $9,737.00/mt. Aluminium closed marginally lower at $2,535.65/mt.

CURRENCIES

  • Yesterday, the South African rand strengthened against the US dollar. In South Africa, the private sector business activity showed modest growth in April.
  • The yield on benchmark government bonds were mixed yesterday. The yield on the 2030 bond fell to 10.85%, while that for the longer-dated 2040 issue rose to 13.13%.
  • At 05:30 SAST, the US dollar is trading 0.1% higher against the South African rand at R18.5080, while the euro is trading 0.1% higher at R19.9272. At 05:30 SAST, the British pound has gained 0.1% against the South African rand to trade at R23.2433.
  • Yesterday, the euro mostly declined against most of the major currencies. In Germany, service sector picks up pace in April. In the eurozone, produce price inflation decline in March, attributed to a downward trend in energy prices. Meanwhile, investor confidence improved for a seventh straight month in May. Moreover, private sector activity accelerated to an 11-month high in April.
  • At 05:30 SAST, the euro marginally slipped against the US dollar to trade at $1.0767, while it has marginally gained against the British pound to trade at GBP0.8577.

ECONOMIC UPDATES

  • In South Africa, the S&P Global PMI rose to a level of 50.30 in April, compared to a level of 48.40 recorded in the previous month.
  • In the UK, BRC like-for-like retail sales eased 4.4% on a YoY basis in April, compared to an advance of 3.2% recorded in the prior month.
  • In Spain, the services PMI climbed to a level of 56.20 in April, compared to a level of 56.10 recorded in the previous month.
  • In Italy, the services PMI unexpectedly dropped to a level of 54.30 in April. The services PMI had recorded a level of 54.60 in the previous month.
  • In France, the final services PMI climbed to a level of 51.30 in April, compared to a level of 48.30 recorded in the prior month. Market expectations were for services PMI to climb to a level of 50.50.
  • In Germany, the final services PMI recorded a jump to a level of 53.20 in April, less than market expectations and compared to a level of 50.10 recorded in the prior month.
  • In the eurozone, the final services PMI recorded a rise to a level of 53.30 in April, compared to a level of 51.50 recorded in the previous month. Market anticipations were for services PMI to climb to a level of 52.90.
  • In the eurozone, the sentix investor confidence improved to a level of -3.60 in May, compared to a level of -5.90 recorded in the prior month.
  • In the eurozone, the producer price index (PPI) fell 0.4% on an MoM basis in March. In the prior month, the PPI had fallen by a revised 1.1%.
  • In Japan, the Jibun Bank services PMI declined to a level of 54.30 in April, compared to a level of 54.60 recorded in the previous month.

CORPORATE UPDATES

SOUTH AFRICA

  • Redefine Properties Limited (JO: RDFJ ): The real estate investment trust company, in its results for the six months ended 29 February 2024, reported that total revenues noted an 8.2% increase from the same period of the prior to R5.21bn. Its diluted EPS rose to 16.14c as compared with 11.80c recorded in the corresponding period of the prior year.
  • Oil gains ground after Saudi Arabia increases prices: Oil futures climbed after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing the fear the Israel-Hamas conflict could still widen in the key oil producing region.

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