Market Review, Commodities, Currencies, Economic & Corporate Update - 10.11.23

Published 2023/11/10, 09:02
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SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the red yesterday, weighed down by losses in miners and food producers.
  • Gold miners, AngloGold Ashanti (JO:ANGJ), Harmony Gold Mining (JO:HARJ) and Gold Fields (JO:GFIJ) shed 8.4%, 1.8% and 1.0%, respectively.
  • Pharmaceutical companies, Life Healthcare (JO:LHCJ), Netcare (JO:NTCJ) and Aspen Pharmacare (JO:APNJ) dropped 2.3%, 0.9% and 0.8%, respectively.
  • Retailers, Foschini Group (JO:TFGJ), SPAR Group (JO:SPPJ) and Pick ‘n Pay Stores (JO:PIKJ) declined 2.2%, 1.5% and 0.9%, respectively.
  • Diversified miners, Merafe Resources (JO:MRFJ), Pan African Resources (JO:PANJ) and Anglo American (JO:AGLJ) eased 1.7%, 1.6% and 1.5%, respectively.
  • Food companies, Astral Foods (JO:ARLJ) and Tiger Brands (JO:TBSJ) fell 1.7% and 1.0%, respectively.
  • On the flipside, property developers, Shaftesbury Capital, Hammerson (LON:HMSO) and NEPI Rockcastle N.V. (JO:NRPJ) advanced 2.2%, 1.7% and 0.7%, respectively.
  • The JSE All Share index declined 0.3% to close at 72,226.69.

UK MARKET REVIEW

  • The UK market finished firmer yesterday, following robust domestic corporate earnings results.
  • Online car marketplace company, Auto Trader Group (LON:AUTOA) jumped 8.5%, after the company reported a jump in its interim revenue and projected a rise in annual profit margins.
  • Pharmaceutical company, AstraZeneca (LON:AZN) advanced 2.6%, after the company raised its annual core profit forecast, citing strong demand for its cancer drugs, and following a deal worth $2.00bn to boost its anti-obesity market.
  • On the other hand, online betting company, Flutter Entertainment (LON:FLTRF) edged down 10.2%, after the company slashed its full-year earnings.
  • The FTSE 100 index advanced 0.7% to close at 7,455.67.

US MARKET REVIEW

  • US markets ended lower yesterday, amid rise in the Treasury yields and following hawkish comments from US Federal Reserve (Fed) Chair Jerome Powell.
  • Technology companies, Cisco Systems (NASDAQ:CSCO) and Microsoft (NASDAQ:MSFT) declined 1.9% and 0.7% respectively.
  • Homebuilding companies, Pulte Group (NYSE:PHM), D.R. Horton (NYSE:DHI) and Lennar Corporation (NYSE:LEN) shed 1.0%, 0.9% and 0.7%, respectively.
  • On the contrary, media and entertainment company, Walt Disney (NYSE:DIS) jumped 6.9%, after the company reported a rise in 4Q23 profits and registered an increase in streaming customers.
  • The S&P 500 index fell 0.8% to settle at 4,347.35, while the DJIA index declined 0.6% to close at 33,891.94.
  • The NASDAQ index eased 0.9% to end the trading session at 13,521.45.

ASIA MARKET REVIEW

  • Asian markets are trading lower this morning, tracking overnight losses on Wall Street.
  • In Japan, banking company, SoftBank Group Corporation (TYO:9984) has shed 7.7%.
  • On the flipside, cement company, Sumitomo Osaka Cement (TYO:5232) has gained 2.9%.
  • In Hong Kong, entertainment company, Galaxy Entertainment Group (HK:0027) has declined 4.5%.
  • On the other hand, restaurant company, Haidilao International Holdings (HK:6862) has added 0.8%.
  • In South Korea, chemical company, Lotte Chemical Corporation (KS:011170) has edged down 8.2%.
  • On the contrary, banking company, Jeju Bank (KS:006220) has advanced 6.0%.
  • The Nikkei 225 index is trading 0.6% lower at 32,450.03.
  • The Hang Seng index has declined 1.5% to trade at 17,251.20, while the Kospi index is trading 1.0% lower at 2,403.24.

COMMODITIES

  • At 05:30 SAST today, Brent prices rose 0.4% to trade at $80.36/bl.
  • Yesterday, Brent prices rose 0.6% to settle at $80.01/bl, as hawkish comments from the US Fed Chair Jerome Powell dented hopes for a strong demand.
  • At 05:30 SAST today, gold prices marginally advanced to trade at $1,959.68/oz. Yesterday, gold gained 0.5% to close at $1,959.24/oz.
  • Yesterday, copper declined 0.7% to close at $8,030.25/mt. Aluminium closed 1.0% lower at $2,245.27/mt.

CURRENCIES

  • Yesterday, the South African rand weakened against the US dollar. In South Africa, manufacturing production declined more than expected in September, amid moderate demand. Separately, in the US, the number of people filing for initial jobless claims fell more than expected in the week ended 3 November 2023.
  • The yield on benchmark government bonds rose yesterday. The yield on the 2030 bond advanced to 10.34% while that for the longer-dated 2040 issue rose to 12.41%.
  • At 05:30 SAST, the US dollar is trading marginally higher against the South African rand at R18.6662, while the euro is trading 0.1% higher at R19.9184. At 05:30 SAST, the British pound has gained marginally against the South African rand to trade at R22.8148.
  • Yesterday, the euro mostly advanced against most of the major currencies.
  • At 05:30 SAST, the euro marginally advanced against the US dollar to trade at $1.0674, while it has marginally gained against the British pound to trade at GBP0.8734.

ECONOMIC UPDATES

  • In South Africa, manufacturing production dropped 4.3% on a YoY basis in September, more than market expectations anc compared to a revised rise of 1.5% recorded in the previous month.
  • In the US, initial jobless claims fell to a level of 217.00K in the week ended 3 November 2023, more than market expectations for a drop to a level of 218.00K. Initial jobless claims had recorded a revised level of 220.00K in the previous week.
  • US Fed Chairman, Jerome Powell, in his speech indicated that more rate hikes are still possible.
  • In New Zealand, the business NZ PMI declined to a level of 42.50 in October, compared to a level of 45.30 recorded in the previous month.

CORPORATE UPDATES

SOUTH AFRICA

  • Sibanye Stillwater Limited (JO:SSWJ): The mining company announced that it has entered into a purchase agreement to acquire the Reldan Group of Companies for an enterprise value of $211.50mn, with a cash consideration payable of $155.40mn. The transaction is expected to close during the first quarter of 2024, subject to receipt of applicable regulatory approvals.
  • Sappi Limited (JO:SAPJ): The paper company, in its FY23 results, revealed that sales fell to $5.81bn from $7.30bn posted in the previous year. Its diluted EPS decreased 51.1% from the prior year to US 44.00 cents.
  • PPC Limited (JO:PPCJ): The cement company, in its 1H24 trading update, indicated that it expects EPS to be between 21.00c and 25.00c as compared with a loss per share of 30.00c recorded in the previous year. Also, it expects HEPS to be between 25.50c and 26.50c as compared with a loss per share of 6.00c recorded in the previous year.
  • Oil steady as markets ignore signs of deflation in China: Oil prices steadied as markets shrugged off deflationary indicators in China and looked for further clues on the status of demand from the world’s two biggest oil consumers.

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