Market Review, Commodities, Currencies, Economic & Corporate Update - 09.04.24

  • Market Overview

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the green yesterday, boosted by gains in property and precious metal mining stocks.
  • Property developers, Delta Property Fund (JO: DLTJ ), Emira Property Fund (JO: EMIJ ), Vukile Property Fund (JO: VKEJ ) and Growthpoint Properties (JO: GRTJ ) gained 16.7%, 3.9%, 1.1% and 1.0%, respectively.
  • Platinum miners, Northam Platinum (JO: NPHJ ), Impala Platinum (JO: IMPJ ) and Anglo American Platinum (JO: AMSJ ) surged 7.8%, 7.4% and 5.1%, respectively.
  • Energy and chemical company, Sasol (JO: SOLJ ) jumped 7.5%, after the company revealed that it has won its appeal that its sulphur dioxide emissions would be measured using an alternative method.
  • Retailers, Pick ‘n Pay Stores (JO: PIKJ ), Cashbuild (JO: CSBJ ), Foschini Group (JO: TFGJ ) and SPAR Group (JO: SPPJ ) advanced 5.2%, 1.4%, 1.3% and 1.2%, respectively.
  • The JSE All Share index advanced 0.7% to close at 75,334.94.

UK MARKET REVIEW

  • The UK market finished firmer yesterday, amid strength mining sector stocks.
  • Betting and gambling company, Entain (LON: ENT ) jumped 5.2%, amid reports of potential takeover bids by private equity firms including Apollo.
  • Miners, Rio Tinto (LON: RIO ), Fresnillo (LON: FRES ), Glencore (LON: GLEN ) (JO: GLNJ ) and Antofagasta (LON: ANTO ) advanced 4.2%, 2.6%, 1.9% and 1.0%, respectively, tracking higher copper prices amid strong manufacturing data from China.
  • Travel and leisure companies, International Consolidated Airlines Group S.A. (LON: ICAG ), Whitbread (LON: WTB ) and InterContinental Hotels Group (LON: IHG ) gained 2.3%, 1.7% and 1.2%, respectively.
  • On the other hand, water utilities companies, Severn Trent (LON: SVT ) and United Utilities Group (LON: UU ) dropped 1.9% and 1.2%, respectively.
  • Retailers, Marks & Spencer Group (LON: MKS ), JD Sports Fashion (LON: JD ) and Ocado Group (LON: OCDO ) declined 1.8%, 1.4% and 1.2%, respectively.
  • The FTSE 100 index advanced 0.4% to close at 7,943.47.

US MARKET REVIEW

  • US markets ended mostly lower yesterday, ahead of crucial US inflation data and first-quarter earnings results.
  • Media companies, Paramount Global (NASDAQ: PARA ), Netflix (NASDAQ: NFLX ) and Walt Disney (NYSE: DIS ) dropped 7.6%, 1.2% and 0.9%, respectively.
  • Supermarket retail companies, Kroger (NYSE: KR ), Dollar Tree (NASDAQ: DLTR ), Dollar General Corporation (NYSE: DG ) and Target Corporation (NYSE: TGT ) declined 3.4%, 1.9%, 1.4% and 1.2%, respectively.
  • On the contrary, electric vehicles company, Tesla (NASDAQ: TSLA ) advanced 4.9%, after CEO Elon Musk said that the company would unveil its self-driving Robotaxi on 8 August 2024.
  • Financial services companies, American Express (NYSE: AXP ), Goldman Sachs Group (NYSE: GS ) and JPMorgan Chase (NYSE: JPM ) added 0.7%, 0.6% and 0.5%, respectively.
  • The S&P 500 index slightly fell to settle at 5,202.39, while the DJIA index marginally eased to close at 38,892.80.
  • The NASDAQ index marginally climbed to end the trading session at 16,253.96.

ASIA MARKET REVIEW

  • Asian markets are trading mostly higher this morning.
  • In Japan, chemical company, Shin-Etsu Chemical (TYO: 4063 ) has advanced 3.4%.
  • On the flipside, pharmaceutical company, Sumitomo Pharma (TYO: 4506 ) has declined 1.2%.
  • In Hong Kong, real estate company, Henderson Land Development (OTC: HLDCY ) has gained 2.6%.
  • On the other hand, consumer electronics company, Lenovo Group (HK: 0992 ) has eased 0.6%.
  • In South Korea, shipping company, Heung-A-Shipping (KS: 003280 ) has shed 5.8%.
  • On the contrary, electronics company, LG Electronics (KS: 066570 ) has added 1.8%.
  • The Nikkei 225 index is trading 0.5% higher at 39,540.76.
  • The Hang Seng index has advanced 0.8% to trade at 16,871.28, while the Kospi index is trading 0.3% lower at 2,710.30.

COMMODITIES

  • At 05:30 SAST today, Brent prices rose 0.4% to trade at $90.72/bl.
  • Yesterday, Brent prices fell 0.9% to settle at $90.38/bl, after Israel withdrew more of its troops from southern Gaza. Moreover, Israel and Hamas began a fresh round of ceasefire talks.
  • At 05:30 SAST today, gold prices advanced 0.2% to trade at $2,343.80/oz. Yesterday, gold gained 0.4% to close at $2,338.94/oz, amid central bank purchases as well as ongoing geopolitical tensions.
  • Yesterday, copper rose 0.8% to close at $9,281.36/mt. Aluminium closed 0.4% higher at $2,460.06/mt.

CURRENCIES

  • Yesterday, the South African rand strengthened against the US dollar.
  • The yield on benchmark government bonds rose yesterday. The yield on the 2030 bond advanced to 10.85%, while that for the longer-dated 2040 issue rose to 13.18%.
  • At 05:30 SAST, the US dollar is trading marginally lower against the South African rand at R18.6366, while the euro is trading slightly lower at R20.232. At 05:30 SAST, the British pound has slightly declined against the South African rand to trade at R23.5867.
  • Yesterday, the euro mostly advanced against most of the major currencies. In Germany, industrial production rose more than expected in February. In the eurozone, the Sentix investor confidence strengthened for a sixth consecutive month in April. In the UK, the BRC like-for-like retail sales rose more than expected in March.
  • At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.0856, while it has weakened 0.1% against the British pound to trade at GBP0.8579.

ECONOMIC UPDATES

  • In the UK, the BRC like-for-like retail sales rose 3.2% on a YoY basis in March, more than market expectations for a rise of 1.8%. The BRC like-for-like retail sales had recorded a rise of 1.0% in the previous month.
  • In Switzerland, seasonally adjusted unemployment rate rose to 2.3% on a MoM basis in March, compared to 2.2% recorded in the prior month.
  • In Germany, seasonally adjusted industrial production rose 2.1% on a MoM basis in February, more than market expectations and compared to a revised rise of 1.3% recorded in the prior month.
  • In Germany, seasonally adjusted trade surplus narrowed to EUR21.40bn in February, compared to EUR27.50bn recorded in the previous month.
  • In the eurozone, the Sentix investor confidence index rose to a level of -5.90 in April, compared to a level of -10.50 recorded in the prior month.
  • In Australia, the Westpac consumer confidence index dropped 2.4% in April, compared to a drop of 1.8% recorded in the prior month.

CORPORATE UPDATES

SOUTH AFRICA

  • PPC (JO: PPCJ ) considers options on how to reward its shareholders: Cement major PPC has signalled that it will finally reward shareholders in this financial year either by reinstating dividend payments or through implementing a share repurchase programme.
  • Four more directors resign from struggling Ellies: The board of embattled electronics maker Ellies continues to wear thin with four more board members stepping down from the company.

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