SOUTH AFRICA MARKET REVIEW
- South African markets closed in the red on Friday, led by losses in mining and property sector stocks.
- Gold miners, Gold Fields (JO:GFIJ), Harmony Gold Mining (JO:HARJ) and AngloGold Ashanti (JO:ANGJ) dropped 3.7%, 1.0% and 0.8%, respectively.
- Property developers, Growthpoint Properties (JO:GRTJ), Redefine Properties (JO:RDFJ) and Shaftesbury Capital declined 1.8%, 1.5% and 0.7%, respectively.
- On the flipside, retailers, Cashbuild (JO:CSBJ), Mr Price Group (JO:MRPJ) and Shoprite Holdings (JO:SHPJ) advanced 4.7%, 2.9% and 2.0%, respectively.
- Platinum miners, Impala Platinum (JO:IMPJ), Anglo American Platinum (JO:AMSJ) and Northam Platinum (JO:NPHJ) gained 4.6%, 2.2% and 2.1%, respectively.
- Lenders, Nedbank Group (JO:NEDJ), Capitec Bank Holdings (JO:CPIJ) and Standard Bank Group (JO:SBKJ) rose 1.2%, 1.1% and 0.8%, respectively.
- Pharmaceutical companies, Netcare (JO:NTCJ) and Life Healthcare (JO:LHCJ) added 0.7% and 0.6%, respectively.
- The JSE All Share index marginally declined to close at 74,488.20.
UK MARKET REVIEW
- The UK market finished weaker on Friday, amid strength in the British Pound.
- Mining company, Endeavour Mining (LON:EDV) dropped 6.9%, after the company announced immediate dismissal of CEO Sebastien de Montessus, citing serious misconduct and irregularities.
- Paper and packaging companies, Mondi (LON:MNDI), Smurfit Kappa Group (LON:SKG) and DS Smith (LON:SMDS) shed 2.5%, 1.4% and 1.1%, respectively.
- Insurance companies, Prudential (LON:PRU) and Legal & General Group (LON:LGEN) declined 1.8% and 1.0%, respectively.
- Retailers, Ocado Group (LON:OCDO), B&M European Value Retail SA (LON:BMEB) and Next (LON:NXT) fell 1.7%, 1.5% and 1.0%, respectively.
- Alcoholic beverages company, Diageo (LON:DGE) eased 1.5%, following China's initiation of an anti-dumping inquiry into European Union-imported brandy.
- The FTSE 100 index declined 0.4% to close at 7,689.61.
US MARKET REVIEW
- US markets ended higher on Friday, following robust US jobs data.
- Airlines companies, Southwest Airlines (NYSE:LUV), American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL) and United Airlines (NASDAQ:UAL) advanced 4.4%, 3.9%, 3.4% and 3.2%, respectively.
- Media and entertainment companies, Paramount Global (NASDAQ:PARA) and Comcast Corporation (NASDAQ:CMCSA) gained 1.6% and 1.0%, respectively.
- Financial services companies, American Express (NYSE:AXP), Goldman Sachs Group (NYSE:GS) and JPMorgan Chase (NYSE:JPM) rose 1.0%, 0.9% and 0.5%, respectively.
- On the contrary, packaged foods companies, ConAgra Foods (NYSE:CAG), Hershey’s and General Mills (NYSE:GIS) dropped 1.8%, 1.5% and 1.1%, respectively.
- The S&P 500 index rose 0.2% to settle at 4,697.24, while the DJIA index advanced 0.1% to close at 37,466.11.
- The NASDAQ index climbed 0.1% to end the trading session at 14,524.07.
ASIA MARKET REVIEW
- Asian markets are trading lower this morning, ahead of US and Chinese inflation data.
- In Japan, markets are closed today on account of a public holiday.
- In Hong Kong, consumer electronics company, Xiaomi Corporation (HK:1810) has dropped 4.8%.
- On the other hand, energy company, China Shenhua Energy (HK:1088) has added 0.9%.
- In South Korea, pharmaceutical company, Ilsung Pharmaceutical (KS:003120) has shed 4.7%.
- On the contrary, software company, Douzone Bizon (KS:012510) has surged 7.3%.
- On Friday, the Nikkei 225 indexadvanced 0.3% to close at 33,377.42.
- Today, the Hang Seng indexis trading 1.9% lower at 16,216.42, while the Kospi index is trading 0.3% lower at 2,570.98.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 1.1% to trade at $77.9/bl, on price cuts by Saudi Arabia and a rise in the OPEC oil output.
- On Friday, Brent prices rose 1.5% to settle at $78.76/bl, as US Secretary of State Antony Blinken visits Middle East to mitigate regional tensions fuelled by the Israel-Hamas conflict. Meanwhile, the Baker Hughes reported that the US oil rigs count rose by 1 to 501 in the week ended 5 January 2024.
- At 05:30 SAST today, gold prices declined 0.3% to trade at $2,040.16/oz. On Friday, gold gained 0.1% to close at $2,045.50/oz.
- On Friday, copper declined 0.3% to close at $8,346.00/mt. Aluminium closed 0.5% lower at $2,268.75/mt.
CURRENCIES
- On Friday, the South African rand strengthened against the US dollar. In the US, nonfarm payrolls rose more than expected in December. Also, factory orders climbed in November. Meanwhile, the ISM services PMI declined more than expected in December.
- The yield on benchmark government bonds fell on Friday. The yield on the 2030 bond declined to 9.87%, while that for the longer-dated 2040 issue fell to 12.32%.
- At 05:30 SAST, the US dollar is trading 0.1% higher against the South African rand at R18.7062, while the euro is trading 0.2% higher at R20.4794. At 05:30 SAST, the British pound has gained 0.1% against the South African rand to trade at R23.7977.
- On Friday, the euro declined against most of the major currencies. In Germany, retail sales declined more than expected in November. In the eurozone, the consumer price index (CPI) rose in December. In the UK, the Halifax house prices increased for a third consecutive month in December, amid shortage in properties.
- At 05:30 SAST, the euro marginally slipped against the US dollar to trade at $1.094, while it has marginally gained against the British pound to trade at GBP0.8607.
ECONOMIC UPDATES
- In the UK, the Halifax house price index rose 1.1% on a MoM basis in December, compared to a revised rise of 0.6% recorded in the previous month.
- In the UK, the construction PMI advanced to a level of 46.80 in December, more than market expectations and compared to a level of 45.50 recorded in the prior month.
- In Italy, the consumer price index (CPI) rose 0.2% on a MoM basis in December, compared to a drop of 0.5% recorded in the prior month.
- In Germany, retail sales dropped 2.5% on a MoM basis in November, more than market expectations for a drop of 0.1%. Retail sales had advanced 1.1% in the previous month.
- In the eurozone, the CPI rose 0.2% on a MoM basis in December, compared to a drop of 0.6% recorded in the previous month.
- In the eurozone, the producer price index (PPI) dropped 0.3% on a MoM basis in November, more than market expectations for a drop of 0.1%. The PPI had recorded a revised rise of 0.3% in the previous month.
- In the US, the unemployment rate unexpectedly remained unchanged at 3.7% in December.
- In the US, nonfarm payrolls unexpectedly rose by 216.00K in December, compared to a revised rise of 173.00K jobs recorded in the previous month.
- In the US, the ISM services PMI fell to a level of 50.60 in December, more than market expectations for a drop to a level of 52.60. The ISM services PMI had recorded a level of 52.70 in the previous month.
- In the US, factory orders rose 2.6% on a MoM basis in November, more than market expectations for a rise of 2.1%. Factory orders had recorded a revised dropped of 3.4% in the prior month.
- In Canada, the unemployment rate unexpectedly remained unchanged at 5.8% in December.
- In Canada, seasonally adjusted Ivey Purchasing Manager’s Index rose to a level of 56.30 in December, compared to a level of 54.70 recorded in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- Oil rises as Middle East tensions persist: Oil prices gained as US Secretary of State Antony Blinken prepared to visit the Middle East to try to prevent the Israel-Gaza conflict from widening.