🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Market Review, Commodities, Currencies, Economic & Corporate Update - 13.05.24

Published 2024/05/13, 09:01
USD/ZAR
-
UK100
-
XAU/USD
-
US500
-
DJI
-
JP225
-
HK50
-
INTC
-
JPM
-
LLY
-
NXT
-
VOD
-
AMAT
-
AAPL
-
BRBY
-
ANTO
-
PFE
-
MU
-
AXP
-
V
-
GC
-
HG
-
LCO
-
CL
-
GLEN
-
AVGO
-
JD
-
IXIC
-
KS11
-
AMSJ
-
GFIJ
-
ANGJ
-
TBSJ
-
IMPJ
-
EXXJ
-
KIOJ
-
GRTJ
-
079430
-
7261
-
9984
-
MAL
-
1099
-
1177
-
PANJ
-
EMIJ
-
RDFJ
-
SSWJ
-
ATTJ
-
RCLJ
-
DRDJ
-
BMEB
-
GLNJ
-
251270
-
MRNA
-
NPHJ
-

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the green for a sixth consecutive session on Friday, as a softer US jobs data renewed rate cut hopes.
  • Platinum miners, Anglo American Platinum (JO:AMSJ), Impala Platinum (JO:IMPJ) and Northam Platinum (JO:NPHJ) jumped 7.5%, 5.8% and 2.5%, respectively.
  • Food companies, RCL Foods (JO:RCLJ) and Tiger Brands (JO:TBSJ) climbed 6.1% and 2.2%, respectively.
  • Property developers, Emira Property Fund (JO:EMIJ), Attacq (JO:ATTJ), Growthpoint Properties (JO:GRTJ) and Redefine Properties (JO:RDFJ) advanced 5.9%, 2.8%, 2.5% and 1.5%, respectively.
  • Diversified miners, Pan African Resources (JO:PANJ), Kumba Iron Ore (JO:KIOJ) and Exxaro Resources (JO:EXXJ) gained 5.2%, 3.5% and 1.5%, respectively.
  • Gold miners, Gold Fields (JO:GFIJ), Sibanye Stillwater and AngloGold Ashanti (JO:ANGJ) rose 4.1%, 3.1% and 2.6%, respectively.
  • The JSE All Share index advanced 1.2% to close at 78,464.22.

UK MARKET REVIEW

  • The UK market finished firmer on Friday, as investors cheered the Bank of England's (BoE) dovish stance following more than expected growth in the British economy in 1Q24.
  • Miners, Glencore (LON:GLEN)(JO:GLNJ) and Antofagasta (LON:ANTO) jumped 2.7% and 1.1%, respectively.
  • Retailers, B&M European Value Retail S.A. (LON:BMEB), JD Sports Fashion (LON:JD), Burberry Group (LON:BRBY) and Next (LON:NXT) advanced 2.5%, 1.4%, 1.2% and 1.0%, respectively.
  • Telecommunications company, Vodafone Group (LON:VOD) gained 1.9%, after the British government approved the proposed merger between the company's UK operation and Hutchison's.
  • On the other hand, real estate portal, Rightmove dropped 5.5%, after the company cut its Average Revenue Per Advertiser (ARPA) growth forecast.
  • The FTSE 100 index advanced 0.6% to close at 8,433.76.

US MARKET REVIEW

  • US markets ended mostly higher on Friday, as investors assessed comments from US Federal Reserve officials.
  • Semiconductor companies, Micron Technology (NASDAQ:MU), Broadcom (NASDAQ:AVGO) and Applied Materials (NASDAQ:AMAT) advanced 2.9%, 2.1% and 1.7%, respectively.
  • Financial services companies, American Express (NYSE:AXP), Visa (NYSE:V) and JPMorgan Chase (NYSE:JPM) gained 1.3%, 0.8% and 0.6%, respectively.
  • On the contrary, pharmaceutical companies, Moderna (NASDAQ:MRNA), Eli Lilly (NYSE:LLY) & Company and Pfizer (NYSE:PFE) dropped 4.4%, 1.5% and 0.6%, respectively.
  • Technology companies, Intel (NASDAQ:INTC) and Apple (NASDAQ:AAPL) eased 0.8% and 0.7%, respectively.
  • The S&P 500 index rose 0.2% to settle at 5,222.68, while the DJIA index advanced 0.3% to close at 39,512.84.
  • The NASDAQ index marginally eased to end the trading session at 16,340.87.

ASIA MARKET REVIEW

  • Asian markets are trading mostly higher this morning.
  • In Japan, banking company, SoftBank Group (TYO:9984) has advanced 2.7%.
  • On the flipside, automobile company, Mazda Motor (TYO:7261) has shed 4.0%.
  • In Hong Kong, pharmaceutical company, Sinopharm Group (HK:1099) has gained 1.4%.
  • On the other hand, pharmaceutical company, Sino Biopharmaceutical (HK:1177) has declined 2.3%.
  • In South Korea, online games company, Netmarble Corporation (KS:251270) has dropped 5.8%.
  • On the contrary, furniture company, Hyundai Livart Furniture (KS:079430) has surged 10.8%.
  • The Nikkei 225 index is trading marginally higher at 38,243.59.
  • The Hang Seng index has gained 0.3% to trade at 19,023.25, while the Kospi index is trading 0.5% lower at 2,716.12.

COMMODITIES

  • At 05:30 SAST today, Brent prices fell 0.3% to trade at $82.54/bl.
  • On Friday, Brent prices fell 1.3% to settle at $82.79/bl, on demand concerns following comments from the US Fed officials that indicated higher-for-longer interest rates. Moreover, the Baker Hughes reported that the US oil rigs count fell by 3 to 496 in the week ended by 10 May 2024.
  • At 05:30 SAST today, gold prices declined 0.1% to trade at $2,358.01/oz. On Friday, gold gained 0.6% to close at $2,360.14/oz.
  • On Friday, copper rose 1.2% to close at $9,897.35/mt. Aluminium closed 1.6% lower at $2,529.67/mt.

CURRENCIES

  • On Friday, the South African rand strengthened against the US dollar. In the US, the Michigan consumer sentiment index fell more than expected in May.
  • The yield on benchmark government bonds were lower on Friday. The yield on the 2030 bond declined to 10.52%, while that for the longer-dated 2040 issue fell to 12.70%.
  • At 05:30 SAST, the US dollar is trading 0.2% lower against the South African rand at R18.4178, while the euro is trading 0.2% lower at R19.8329. At 05:30 SAST, the British pound has declined 0.2% against the South African rand to trade at R23.0628.
  • On Friday, the euro declined against most of the major currencies. In the UK, gross domestic product (GDP) rose more than expected in March, putting an end to a technical recession. Moreover, industrial production unexpectedly advanced in March.
  • At 05:30 SAST, the euro marginally slipped against the US dollar to trade at $1.0772, while it has slightly weakened against the British pound to trade at GBP0.8600.

ECONOMIC UPDATES

  • In the UK, gross domestic product (GDP) rose 0.6% on a QoQ basis in 1Q24, more than market expectations for a rise of 0.4%, The GDP had recorded a fall of 0.3% in the prior quarter.
  • In the UK, industrial production unexpectedly rose 0.2% on a MoM basis in March, compared to a revised rise of 1.0% recorded in the prior month.
  • In the UK, manufacturing production unexpectedly rose 0.3% on a MoM basis in March, compared to a rise of 1.2% recorded in the prior month.
  • In the UK, total trade deficit narrowed to GBP1.10bn in March, compared to a revised GBP1.48bn recorded in the prior month.
  • In the US, the preliminary Michigan consumer sentiment index declined to a level of 67.40 in May, more than market expectations for a fall to a level of 76.00. The Michigan consumer sentiment index had recorded a level of 77.20 in the prior month.
  • In Canada, the unemployment rate remained unchanged at 6.1% in April.
  • In China, the consumer price index (CPI) rose 0.3% on a YoY basis in April, more than market expectations for a rise of 0.1%.
  • In China, the producer price index (PPI) dropped 2.5% on a YoY basis in April, more than market expectations for a fall of 2.3%. The PPI had recorded a drop of 2.8% in the previous month.

CORPORATE UPDATES

SOUTH AFRICA

  • Sibanye Stillwater Limited (JO:SSWJ): The gold mining company, in its 1Q24 trading update, revealed that 4E PGM production in South Africa increased to 389,313oz from 379,791oz recorded in the previous year. All-in-sustaining costs (AISC) stood at 2,039$/oz. Gold production from the South African gold operations declined 18% with AISC 19% higher, primarily due to cessation of production from Kloof 4 shaft during 2023 but with costs still being incurred during 1Q24 due to the phased closure process. Meanwhile, the operational performance from the US PGM operations was significantly better, reflecting improved operational stability and the benefits of cost reduction measures implemented during the prior quarter.
  • DRDGold Limited (JO:DRDJ): The mining company, in its operational update for the quarter ended 31 March 2024, revealed that gold production declined 3.0% to 1,227kg, while yield was 0.002g/t higher at 0.230g/t. Gold sales declined 4.0% to 1,218kg. All-in sustaining costs per kilogram was R912,695/kg, decreasing on a QoQ basis mainly due to a decrease in sustaining capital expenditure in comparison to the previous quarter.
  • Oil rises on Middle East tension and demand signs: Oil rose, set for a weekly gain, as data this week from the US and China, the world's two largest crude users, pointed to higher demand and continuing uncertainty over the Gaza war supported prices.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.