SOUTH AFRICA MARKET REVIEW
- South African markets closed in the red yesterday, led by losses in mining sector stocks.
- Diversified miners, Pan African Resources (JO:PANJ) and African Rainbow Minerals (JO:ARIJ) dropped 4.4% and 0.8%, respectively.
- Platinum miners, Northam Platinum (JO:NPHJ), Anglo American Platinum (JO:AMSJ) and Impala Platinum (JO:IMPJ) declined 3.2%, 3.1% and 1.6%, respectively.
- Retailers, Lewis Group (JO:LEWJ), Cie Financiere Richemont S.A. (JO:CFRJ) and Pick ‘n Pay Stores (JO:PIKJ) fell 1.5%, 1.4% and 1.2%, respectively.
- On the flipside, lenders, Nedbank Group (JO:NEDJ) and Capitec Bank Holdings (JO:CPIJ) advanced 4.0% and 0.8%, respectively.
- Property developers, Emira Property Fund (JO:EMIJ) and Growthpoint Properties (JO:GRTJ) gained 2.2% and 1.7%, respectively.
- The JSE All Share index declined 0.2% to close at 79,430.06.
UK MARKET REVIEW
- The UK market finished firmer yesterday, buoyed by gains in construction sector stocks.
- Paper and packaging companies, DS Smith Group (LON:SMDS) and Mondi (LON:MNDI) advanced 2.6% and 2.2%, respectively.
- Real estate companies, Berkeley Group Holdings (LON:BKGH) and Barratt Developments (LON:BDEV) gained 1.1% and 0.6%, respectively.
- Travel and leisure companies, Whitbread (LON:WTB) and InterContinental Hotels Group (LON:IHG) rose 1.1% and 0.8%, respectively.
- On the other hand, miners, Fresnillo (LON:FRES), Antofagasta (LON:ANTO) and Rio Tinto (LON:RIO) dropped 3.1%, 0.6% and 0.5%, respectively.
- Pharmaceutical companies, Hikma Pharmaceuticals (LON:HIK) and GSK (LON:GSK) dropped 1.9% and 1.7%, respectively.
- The FTSE 100 index advanced 0.2% to close at 8,026.69.
US MARKET REVIEW
- US markets ended higher yesterday, as dovish comments from the US Federal Reserve officials eased recession concerns.
- Ride sharing and food delivery company, Uber Technologies (NYSE:UBER) surged 10.9%, after the company reported higher revenue and core profit in 2Q24, following steady demand for its services.
- Construction and mining equipment company, Caterpillar (NYSE:CAT) gained 3.0%, after the company reported better than expected profits in 2Q24, as higher prices on its larger excavators and other equipment countered moderating demand in North America.
- The S&P 500 index rose 1.0% to settle at 5,240.03, while the DJIA index advanced 0.8% to close at 38,997.66.
- The NASDAQ index climbed 1.0% to end the trading session at 16,366.86.
ASIA MARKET REVIEW
- Asian markets are trading higher this morning, after the Bank of Japan (BoJ) signaled a pause in rate hikes.
- In Japan, steel company, Japan Steel Works (TYO:5631) has surged 9.8%.
- On the flipside, automobile company, Yamaha Motor (TYO:7272) has declined 2.0%.
- In Hong Kong, e-commerce company, Alibaba Group (NYSE:BABA) Holding has advanced 2.7%.
- On the other hand, pharmaceutical company, Sino Biopharmaceutical (HK:1177) has eased 1.1%.
- In South Korea, banking company, KakaoBank Corporation (KS:323410) has surged 9.5%.
- On the contrary, paper company, Young Poong Paper Manufacturing (KS:006740) has shed 3.8%.
- The Nikkei 225 index is trading 2.3% higher at 35,464.61.
- The Hang Seng index has gained 1.0% to trade at 16,817.73, while the Kospi index is trading 2.3% higher at 2,581.25.
COMMODITIES
- At 05:30 SAST today, Brent prices rose 0.1% to trade at $76.54/bl.
- Yesterday, Brent prices rose 0.2% to settle at $76.48/bl, on supply concerns following potential disruptions in the Middle East and lower production at Libya's Sharara oilfield. Meanwhile, the American Petroleum Institute (API) reported that the US crude oil inventories rose by 0.18mn bls in the week ended 2 August 2024.
- At 05:30 SAST today, gold prices advanced 0.1% to trade at $2,386.14/oz. Yesterday, gold declined 1% to close at $2,383.93/oz, on expectations of major interest rate cuts by the US Fed.
- Yesterday, copper rose 1.1% to close at $8,714.65/mt. Aluminium closed 2.4% higher at $2,302.85/mt.
CURRENCIES
- Yesterday, the South African rand strengthened against the US dollar.
- The yield on benchmark government bonds were mixed yesterday. The yield on the 2030 bond fell to 9.33%, while that for the longer-dated 2040 issue rose to 11.57%.
- At 05:30 SAST, the US dollar is trading 0.3% lower against the South African rand at R18.4192, while the euro is trading 0.5% lower at R20.1139. At 05:30 SAST, the British pound has declined 0.3% against the South African rand to trade at R23.4119.
- Yesterday, the euro mostly declined against most of the major currencies. In Germany, seasonally adjusted factory orders rose in June. In the eurozone, retail sales dropped more than expected in June. In the UK, the construction PMI advanced more than expected in July.
- At 05:30 SAST, the euro slipped 0.2% against the US dollar to trade at $1.0914, while it has weakened 0.3% against the British pound to trade at GBP0.8589.
ECONOMIC UPDATES
- In the UK, the construction PMI advanced more than expected to a level of 55.30 in July, compared to a level of 52.20 recorded in the previous month.
- In Switzerland, the unemployment rate rose to 2.5% on a MoM basis in July, compared to 2.4% recorded in the previous month.
- In Switzerland, real retail sales unexpectedly dropped 2.2% on a YoY basis in June, compared to a revised drop of 0.2% recorded in the previous month.
- In Germany, seasonally adjusted factory orders rose 3.9% on a MoM basis in June, more than market expectations for a rise of 0.8%. Factory orders had recorded a drop of 1.6% in the prior month.
- In the eurozone, retail sales dropped 0.3% on a MoM basis in June, more than market expectations for a drop of 0.1%. Retail sales had recorded a rise of 0.1% in the previous month.
- In the US, goods and services trade deficit narrowed less than expected to $73.10bn in June, compared to a revised deficit of $75.00bn recorded in the previous month.
- In Canada, international merchandise trade balance recorded a surplus of C$0.64bn in June, compared to a deficit of C$1.93bn recorded in the previous month.
- In New Zealand, the unemployment rate rose to 4.6% in 2Q24, compared to 4.3% recorded in the previous quarter.
- In Australia, the AiG manufacturing PMI climbed to a level of -19.50 in June, compared to a level of -26.50 recorded in the prior month.
- In Australia, the AiG industry PMI advanced to a level of -20.70 in June, compared to a level of -25.60 recorded in the prior month.
- In Australia, the AiG construction PMI remained unchanged at a level of -23.20 in June.
- In China, trade surplus unexpectedly narrowed to $84.65bn in July, compared to $99.05bn recorded in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- Nedbank Group Limited (JO:NEDJ): The banking company, in its 1H24 results, reported that net interest income advanced 2.4% from the same period of the preceding year to R20.78bn. Its diluted EPS stood at 1,651.00c, compared with 1,476.00c recorded in the corresponding period of the previous year.
- AngloGold Ashanti Plc (JO:ANGJ): The gold mining company, in its interim results for the six months ended 30 June 2024, reported that revenue from product sales advanced 16.7% from the same period of the preceding year to $2.55bn. Its diluted EPS stood at 74.00 US cents, compared with a loss per share of 9.00 US cents recorded in the corresponding period of the previous year.
- Afrimat Limited (JO:AFTJ): The mining and materials company, in its 1H25 business update, revealed that 1Q saw weak bulk commodities and construction materials due to issues with iron ore exports and cement operations, while 2Q showed recovery with increased volumes and improved domestic demand. The Lafarge integration is progressing, though cement operations remain loss-making. The suspension of loadshedding and stable political conditions are expected to benefit the company. Looking ahead to 2H25, the company plans to dispatch additional export anthracite and anticipates further positive contributions from the Lafarge acquisition.
- Hulamin (JO:MTNJ) flags lower half-year earnings: Aluminium group Hulamin has told investors that its interim earnings for the six months ending in June would decrease by up to a fifth due to disruptions in export production caused by a factory fire in June.