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Market Review, Commodities, Currencies, Economic & Corporate Update - 08.03.24

Published 2024/03/08, 11:27
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SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the green yesterday, buoyed by gains in industrial metals and resources sector stocks.
  • Platinum miners, Impala Platinum (JO:IMPJ), Northam Platinum (JO:NPHJ) and Anglo American Platinum (JO:AMSJ) jumped 7.1%, 3.5% and 3.2%, respectively.
  • Diversified miners, Anglo American (JO:AGLJ), African Rainbow Minerals (JO:ARIJ) and Pan African Resources (JO:PANJ) advanced 4.1%, 3.8% and 1.0%, respectively.
  • Food companies, Tiger Brands (JO:TBSJ) and RCL Foods (JO:RCLJ) gained 3.4% and 3.0%, respectively.
  • Gold miners, AngloGold Ashanti (JO:ANGJ), Harmony Gold Mining (JO:HARJ) and Gold Fields (JO:GFIJ) rose 2.5%, 2.1% and 0.9%, respectively.
  • On the flipside, lenders FirstRand (JO:FSRJ), Capitec Bank Holdings (JO:CPIJ) and Standard Bank Group (JO:SBKJ) dropped 3.1%, 1.6% and 0.8%, respectively.
  • The JSE All Share index marginally advanced to close at 73,604.13.

UK MARKET REVIEW

  • UK markets finished firmer yesterday, boosted by gains in support services and technology sector stocks after the European Central Bank (ECB) kept its key interest rate unchanged amid signs of cooling inflation.
  • Pest control services company, Rentokil Initial (LON:RTO) surged 17.7%, after the company reported a 50.0% jump in its annual profit.
  • Retailers, Ocado Group (LON:OCDO), Tesco (LON:TSCO) and J Sainsbury (LON:SBRY) advanced 4.7%, 1.2% and 1.1%, respectively.
  • Miners, Antofagasta (LON:ANTO) and Glencore (JO:GLNJ) gained 3.2% and 2.6%, respectively.
  • Insurance companies, Prudential (LON:PRU), Aviva (LON:AV) and Legal & General Group (LON:LGEN) rose 2.9%, 1.6% and 0.6%, respectively.
  • On the other hand, betting and gambling company, Entain (LON:ENT) dropped 4.9%, after the company reported a pre-tax loss in FY23.
  • The FTSE 100 index advanced 0.2% to close at 7,692.46.

US MARKET REVIEW

  • US markets ended higher yesterday, boosted by gains in technology sector stocks.
  • Food company, Kroger (NYSE:KR) surged 9.9%, after the company reported better than expected FY23 earnings, citing higher demand for groceries at its stores, tighter cost control and strength in its private-label brands.
  • Semiconductor companies, ON Semiconductor Corporation (NASDAQ:ON), Microchip Technology (NASDAQ:MCHP) and Nvidia Corporation (NASDAQ:NVDA) advanced 6.9%, 6.3% and 4.5%, respectively.
  • Technology companies, Intel (NASDAQ:INTC) and Microsoft (NASDAQ:MSFT) gained 3.7% and 1.8%, respectively.
  • The S&P 500 index rose 1.0% to settle at 5,157.36, while the DJIA index advanced 0.3% to close at 38,791.35.
  • The NASDAQ index climbed 1.5% to end the trading session at 16,273.38.

ASIA MARKET REVIEW

  • Asian markets are trading higher this morning, tracking gains in their US counterparts and as prospects of imminent rate cuts by major global central banks boosted investor sentiment.
  • In Japan, cement company, Sumitomo Osaka Cement (TYO:5232) has gained 3.1%.
  • On the flipside, pharmaceutical company, Astellas Pharma (TYO:4503) has declined 2.0%.
  • In Hong Kong, pharmaceutical company, Hansoh Pharmaceutical Group (HK:3692) has advanced 3.6%.
  • On the other hand, casino and hospitality company, Galaxy Entertainment (HK:0027) has eased 0.9%.
  • In South Korea, chemical company, ISU Specialty Chemical (KS:457190) has surged 13.3%.
  • On the contrary, logistics company, CJ Logistics Corporation (KS:000120) has shed 3.7%.
  • The Nikkei 225 index is trading 0.8% higher at 39,935.24.
  • The Hang Seng index has gained 1.1% to trade at 16,409.64, while the Kospi index is trading 0.9% higher at 2,671.05.

COMMODITIES

  • At 05:30 SAST today, Brent prices fell 0.2% to trade at $83.3/bl.
  • Yesterday, Brent prices rose 0.6% to settle at $83.43/bl, as upbeat economic data from China signalled towards positive global trade.
  • At 05:30 SAST today, gold prices declined 0.1% to trade at $2,156.81/oz. Yesterday, gold gained 0.5% to close at $2,159.16/oz, as a weaker dollar boosted demand for the safe haven yellow metal.
  • Yesterday, copper rose 0.7% to close at $8,546.34/mt. Aluminium closed marginally lower at $2,233.82/mt.

CURRENCIES

  • Yesterday, the South African rand strengthened against the US dollar. In the US, non-farm productivity advanced in 4Q23. Meanwhile, the number of initial jobless claims remained unchanged in the week ended 1 March 2024.
  • The yield on benchmark government bonds fell yesterday. The yield on the 2030 bond declined to 10.07%, while that for the longer-dated 2040 issue fell to 12.40%.
  • At 05:30 SAST, the US dollar is trading 0.2% lower against the South African rand at R18.6505, while the euro is trading 0.1% higher at R20.4673. At 05:30 SAST, the British pound has gained 0.1% against the South African rand to trade at R23.9422.
  • Yesterday, the euro mostly declined against most of the major currencies. In Germany, factory orders declined more than expected in January. Meanwhile, the ECB kept its key interest rate unchanged and lowered both the inflation and growth forecast for 2024. In the UK, the Halifax house prices increased for the fifth consecutive month in February.
  • At 05:30 SAST, the euro marginally slipped against the US dollar to trade at $1.0947, while it has marginally weakened against the British pound to trade at GBP0.8549.

ECONOMIC UPDATES

  • In the UK, the Halifax house price index registered a rise of 0.4% on a MoM basis in February, compared to a revised rise of 1.2% recorded in the previous month. Market were expecting the Halifax house price index to rise 0.8%.
  • In Switzerland, the unemployment rate remained unchanged at 2.2% on a MoM basis in February.
  • In Germany, the seasonally adjusted factory orders in Germany fell 11.3% on a MoM basis in January, more than market expectations for a drop of 6.0%. In the prior month, factory orders had recorded a revised rise of 12.0%.
  • The European Central Bank (ECB) kept its benchmark interest rate unchanged at 4.5%, in line with market expectations.
  • In the US, the number of initial jobless claims unexpectedly remained unchanged at a level of 217.00K in the week ended 1 March 2024, compared to market expectations for a drop to a level of 215.00K.
  • In the US, non-farm productivity rose 3.2% in 4Q23, more than market expectations for a rise of 3.1%. Non-farm productivity had recorded a rise of 3.2% in the prior month.
  • In the US, goods trade deficit widened to $91.60bn in January, compared to a revised deficit of $90.20bn recorded in the previous month.
  • In Canada, building permits climbed 13.5% on a MoM basis in January, more than market expectations for a rise of 5.5%. Building permits had recorded a revised fall of 11.5% in the previous month.
  • In Canada, international merchandise trade surplus stood at C$0.50bn in January, compared to a revised deficit of C$0.86bn recorded in the previous month.

CORPORATE UPDATES

SOUTH AFRICA

  • Sanlam Limited (JO:SLMJ): The financial services company, in its FY23 results, reported that its revenue advanced 34.5% to R19.20bn from the preceding year. Its diluted EPS stood at 573.60c, compared with 473.90c recorded in the previous year.
  • Exxaro Resources Limited (JO:EXXJ): The mining company, in its FY23 trading update, revealed that it expects HEPS to be between 16.0% and 30.0%, lower as compared with 6,016.00c recorded in the previous year. Also, it expects EBITDA to be between 23.0% to 37.0%, lower as compared with R19.00bn recorded in the previous year. Moreover, the company intends to release its reviewed condensed financial results for the year ended 31 December 2023 on or about 14 March 2024.
  • Sun International Limited (JO:SUIJ): The gaming and hospitality company, in its trading update for the year ended 31 December 2023, revealed that it expects EPS to be between 477.00c and 505.00c, higher as compared with 224.00c recorded in the previous year. Also, it expects HEPS to be between 412.00c and 434.00c, higher as compared with to 226.00c recorded in the previous year. The company expects to release results for the year ended 31 December 2023 on or about 18 March 2024.
  • Grindrod Limited (JO:GNDJ): The logistics company, in its FY23 results, indicated that its revenue fell to R4.85bn from R5.88bn posted in the previous year. Its diluted EPS rose 64.3% to 147.90c from the prior year.
  • Stadio (JO:SDOJ) expects full-year earnings to be up to 27.6% higher: Stadio Holdings expects headline earnings per share to be as much as 27.6% higher for the year ended December.

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