SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green yesterday, buoyed by gains in precious metal and retail sector stocks.
- Gold miners, Gold Fields (JO:GFIJ) and AngloGold Ashanti (JO:ANGJ) advanced 2.9% and 2.0%, respectively.
- Retailers, Shoprite Holdings (JO:SHPJ), SPAR Group (JO:SPPJ), Pick ‘n Pay Stores (JO:PIKJ) and Mr Price Group (JO:MRPJ) gained 1.9%, 1.4%, 1.0% and 0.9%, respectively.
- Food companies, Tiger Brands (JO:TBSJ) and RCL Foods (JO:RCLJ) rose 1.6% and 1.2%, respectively.
- On the flipside, Lenders, FirstRand (JO:FSRJ) and Capitec Bank Holdings (JO:CPIJ) dropped 3.5% and 1.4%, respectively.
- Property developers, Delta Property Fund (JO:DLTJ), Shaftesbury Capital and NEPI Rockcastle N.V. (JO:NRPJ) declined 3.2%, 1.0% and 0.6%, respectively.
- The JSE All Share index marginally advanced to close at 73,549.56.
UK MARKET REVIEW
- The UK market finished weaker yesterday, weighed down by losses in retail and energy sector stocks.
- Retailer, Burberry Group (LON:BRBY) declined 3.2%, following European peer LVMH’s slower sales growth in 3Q23.
- Apparel retailer, Next (LON:NXT) shed 2.3%, amid reports that the company is finalising the acquisition of fashion chain FatFace in a deal worth more than GBP100.00mn ($123.00mn).
- Energy companies, BP (LON:BP) and Shell (LON:RDSa) fell 0.9% and 0.6%, respectively, as oil prices fell after Saudi Arabia pledged to help stabilise the market.
- On the other hand, water utility companies, United Utilities Group (LON:UU) and Severn Trent (LON:SVT) advanced 1.5% and 1.3%, respectively.
- The FTSE 100 index declined 0.1% to close at 7,620.03.
US MARKET REVIEW
- US markets ended higher yesterday, as investors assessed the US Federal Reserve’s (Fed) September policy meeting.
- Pharmaceutical company, Eli Lilly (NYSE:LLY) advanced 4.5%, after Novo Nordisk’s (NYSE:NVO) Ozempic showed early signs of success in a trial to treat kidney failure.
- Technology companies, Intel (NASDAQ:INTC) and Microsoft (NASDAQ:MSFT) each gained 1.2%.
- On the contrary, energy company, Exxon Mobil Corporation (NYSE:XOM) dropped 3.6%, after the company agreed to buy Pioneer Natural Resources (NYSE:PXD) for $59.50bn in stock.
- The S&P 500 index rose 0.4% to settle at 4,376.95, while the DJIA index advanced 0.2% to close at 33,804.87.
- The NASDAQ index climbed 0.7% to end the trading session at 13,659.68.
ASIA MARKET REVIEW
- Asian markets are trading higher this morning.
- In Japan, electronics company, Renesas Electronics (TYO:6723) has advanced 4.8%.
- On the flipside, financial services company, Credit Saison (TYO:8253) has declined 1.9%.
- In Hong Kong, consumer electronics company, Lenovo Group (HK:0992) has gained 4.5%.
- On the other hand, gaming and entertainment company, Galaxy Entertainment Group (HK:0027) has eased 0.4%.
- In South Korea, farming equipment company, Daedong Corporation (KS:000490) has surged 10.7%.
- On the contrary, pharmaceutical company, HanAll Biopharma (KS:009420) has shed 4.2%.
- The Nikkei 225 index is trading 1.2% higher at 32,323.28.
- The Hang Seng index has advanced 1.9% to trade at 18,237.53, while the Kospi index is trading 0.9% higher at 2,473.19.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 0.4% to trade at $85.45/bl.
- Yesterday, Brent prices fell 2.1% to settle at $85.82/bl, after Saudi Arabia reaffirmed its efforts to stabilise oil markets. Additionally, the American Petroleum Institute (API) reported that the crude oil inventories rose by 12.94mn bls in the week ended 6 October 2023.
- At 05:30 SAST today, gold prices advanced 0.2% to trade at $1,877.44/oz. Yesterday, gold gained 0.7% to close at $1,873.61/oz, as a drop in the US Treasury yields boosted demand for the precious yellow metal.
- Yesterday, copper rose 0.5% to close at $7,943.50/mt. Aluminium closed 0.2% lower at $2,217.37/mt.
CURRENCIES
- Yesterday, the South African rand strengthened against the US dollar. In the US, the producer price index (PPI) rose more than expected in September. Moreover, the number of MBA mortgage applications rose in the week ended 6 October 2023.
- The yield on benchmark government bonds fell yesterday. The yield on the 2030 bond declined to 10.73% while that for the longer-dated 2040 issue fell to 12.77%.
- At 05:30 SAST, the US dollar is trading marginally higher against the South African rand at R18.8314, while the euro is trading marginally higher at R20.0005. At 05:30 SAST, the British pound has marginally gained against the South African rand to trade at R23.1858.
- Yesterday, the euro mostly declined against most of the major currencies. In Germany, the consumer price index (CPI) rose in September, in line with market expectations.
- At 05:30 SAST, the euro marginally advanced against the US dollar to trade at $1.0622, while it has marginally weakened against the British pound to trade at GBP0.8626.
ECONOMIC UPDATES
- In the UK, the RICS housing price balance unexpectedly dropped 69.0% in September, compared to a drop of 68.0% recorded in the previous month.
- In Germany, the consumer price index (CPI) rose 0.3% on a MoM basis in September, in line with market expectations.
- In the US, MBA mortgage applications rose 0.6% in the week ended 6 October 2023, compared to a drop of 6.0% recorded in the previous week.
- In the US, the producer price index (PPI) rose 0.5% on a MoM basis in September, more than market expectations for a rise of 0.4%. The PPI had recorded a rise of 0.7% in the prior month.
- In Canada, building permits rose 3.4% on a MoM basis in August, more than market expectations and compared to a revised fall of 3.8% in the prior month.
- In Japan, the PPI rose 2.0% on a YoY basis in September, less than market expectations for a rise of 2.3%. The PPI had advanced 3.2% in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- PSG Financial Services Limited (JO:KSTJ): The financial services company, in its 1H23 results, indicated that insurance revenue rose to R1.02bn from R0.82bn posted in the corresponding period of the previous year. Its diluted EPS increased 21.4% from the same period of the prior year to 37.40c.
- Oil slips after huge jump due to attack on Israel: Oil prices edged lower, as fears of disruption to supplies due to conflict in the Middle East receded, at least for the time being.