Market Review, Commodities, Currencies, Economic & Corporate Update - 18.04.24

  • Market Overview

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the red yesterday, weighed down by losses in insurance and banking sector stocks.
  • Insurance companies, Old Mutual (JO: OMUJ ) and Discovery (JO: DSBPp ) dropped 4.1% and 1.6%, respectively.
  • Lenders, Standard Bank Group (JO: SBKJ ), FirstRand (JO: FSRJ ), Capitec Bank Holdings (JO: CPIJ ) and Nedbank Group (JO: NEDJ ) declined 2.8%, 1.8%, 1.4% and 1.3%, respectively.
  • Retailers, Shoprite Holdings (JO: SHPJ ), Clicks Group (JO: CLSJ ), Cashbuild (JO: CSBJ ) and Pick ‘n Pay Stores (JO: PIKJ ) fell 2.3%, 1.2%, 0.9% and 0.7%, respectively.
  • On the flipside, platinum miners, Impala Platinum (JO: IMPJ ), Northam Platinum (JO: NPHJ ) and Anglo American Platinum (JO: AMSJ ) jumped 7.9%, 2.4% and 1.9%, respectively.
  • Gold miners, Sibanye Stillwater (JO: SSWJ ), AngloGold Ashanti (JO: ANGJ ), Harmony Gold Mining (JO: HARJ ) and Gold Fields (JO: GFIJ ) advanced 5.2%, 3.8%, 3.1% and 0.8%, respectively.
  • The JSE All Share index marginally declined to close at 72,995.19.

UK MARKET REVIEW

  • The UK market finished firmer yesterday, boosted by gains in mining sector stocks.
  • Miner, Rio Tinto (LON: RIO ) advanced 2.6%, after the company released its 1Q24 production update. Peers, Fresnillo (LON: FRES ), Antofagasta (LON: ANTO ) and Glencore (JO: GLNJ ) gained 2.9%, 2.8% and 1.3%, respectively.
  • Retailers, B&M European Value Retail S.A. (LON: BMEB ), JD Sports Fashion (LON: JD ), Ocado Group (LON: OCDO ) and J Sainsbury (LON: SBRY ) increased 2.5%, 1.8%, 1.6% and 1.0%, respectively.
  • Banking firms, Lloyds Banking Group (LON: LLOY ), NatWest Group (LON: NWG ), Barclays (LON: BARC ) and HSBC Holdings (LON: HSBA ) rose 1.5%, 1.3%, 0.8% and 0.7%, respectively.
  • Gaming and entertainment company, Entain (LON: ENT ) added 1.0%, after the company reported a jump in online gaming revenue in 1Q24, amid jump in customer base.
  • On the other hand, pharmaceutical companies, GSK (LON: GSK ) and Hikma Pharmaceuticals (LON: HIK ) has eased 1.3% and 0.7%, respectively.
  • The FTSE 100 index advanced 0.4% to close at 7,847.99.

US MARKET REVIEW

  • US markets ended lower yesterday, as investors assessed the US Federal Reserve's interest rate stance.
  • Semiconductor companies, Advanced Micro Devices (NASDAQ: AMD ), Applied Materials (NASDAQ: AMAT ) and Micron Technology (NASDAQ: MU ) dropped 5.8%, 4.6% and 4.5%, respectively.
  • Financial services company, US Bancorp (NYSE: USB ) shed 3.6%, after the company reported a 22.0% drop in 1Q24 profits and further slashed its annual interest income forecast.
  • Technology companies, Intel (NASDAQ: INTC ), Apple (NASDAQ: AAPL ) and Microsoft (NASDAQ: MSFT ) fell 1.6%, 0.8% and 0.7%, respectively.
  • On the contrary, airlines company, United Airlines Holdings (NASDAQ: UAL ) surged 17.5%, after the company projected stronger-than-expected earnings for 2Q24.
  • The S&P 500 index fell 0.6% to settle at 5,022.21, while the DJIA index declined 0.1% to close at 37,753.31.
  • The NASDAQ index eased 1.1% to end the trading session at 15,683.37.

ASIA MARKET REVIEW

  • Asian markets are trading higher this morning.
  • In Japan, airlines company, Japan Airlines (TYO: 9201 ) has advanced 3.1%.
  • On the flipside, banking company, Softbank Group (TYO: 9984 ) has shed 3.2%.
  • In Hong Kong, sports product company, Anta Sports Product (HK: 2020 ) has jumped 4.0%.
  • On the other hand, infrastructure company, CK Infrastructure Holdings (HK: 1038 ) has eased 0.8%.
  • In South Korea, pharmaceutical company, Jeil Pharma Holdings (KS: 271980 ) has surged 8.3%.
  • On the contrary, logistics services company, Kukbo (KS: 001140 ) has declined 3.4%.
  • The Nikkei 225 index is trading 0.3% higher at 38,090.87.
  • The Hang Seng index has advanced 1.3% to trade at 16,461.38, while the Kospi index is trading 1.8% higher at 2,631.26.

COMMODITIES

  • At 05:30 SAST today, Brent prices rose 0.2% to trade at $87.44/bl.
  • Yesterday, Brent prices fell 3.0% to settle at $87.29/bl, following a rise in the US crude oil inventories and weaker Chinese economic data. The US Energy Information Administration (EIA) reported that the US crude inventories advanced by 2.74mn bls in the week ended 12 April 2024.
  • At 05:30 SAST today, gold prices advanced 0.6% to trade at $2,374.39/oz. Yesterday, gold declined 0.9% to close at $2,360.81/oz, amid declining possibilities of US interest rate cuts weighed on precious metal demand.
  • Yesterday, copper rose 0.6% to close at $9,433.00/mt. Aluminium closed 0.6% higher at $2,587.04/mt.

CURRENCIES

  • Yesterday, the South African rand strengthened against the US dollar. In South Africa, consumer price inflation rose less than expected in March. In the US, the number of MBA mortgage applications rose in the week ended 12 April 2024.
  • The yield on benchmark government bonds fell yesterday. The yield on the 2030 bond declined to 10.97%, while that for the longer-dated 2040 issue fell to 13.40%.
  • At 05:30 SAST, the US dollar is trading 0.1% lower against the South African rand at R18.9969, while the euro is trading 0.1% lower at R20.2862. At 05:30 SAST, the British pound has marginally declined against the South African rand to trade at R23.6853.
  • Yesterday, the euro advanced against most of the major currencies. In the eurozone, consumer price inflation softened in March, in line with market expectations. In the UK, the consumer price index (CPI) softened in March to its lowest since September 2021. Moreover, the the DCLG house price index fell in February.
  • At 05:30 SAST, the euro marginally advanced against the US dollar to trade at $1.0677, while it has slightly weakened against the British pound to trade at GBP0.8566.

ECONOMIC UPDATES

  • In South Africa, the consumer price index (CPI) climbed to 5.3% on a YoY basis in March, compared to 5.6% recorded in the previous month.
  • In South Africa, the CPI rose 0.8% on a MoM basis in March, compared to a rise of 1.0% recorded in the previous month.
  • In South Africa, retail sales fell 3.2% on a MoM basis in February, compared to a rise of 1.2% recorded in the prior month.
  • In the UK, the CPI rose 0.6% on a MoM basis in March, compared to a similar rise recorded in the prior year.
  • In the UK, the DCLG house price index fell 0.2% on a YoY basis in February, compared to a drop of 0.6% recorded in the previous month.
  • In the eurozone, the CPI rose 0.8% on a MoM basis in March, in line with market expectations and compared to a rise of 0.6% recorded in the prior month.
  • In the US, the MBA mortgage applications advanced 3.3% in the week ended 12 April 2024, compared to a rise of 0.1% recorded in the previous week.
  • In Australia, the seasonally adjusted unemployment rate rose to 3.8% in March, compared to 3.7% recorded in the prior month.

CORPORATE UPDATES

SOUTH AFRICA

  • Anglo American Plc (JO: AGLJ ): The mining company announced that the value of rough diamond sales (Global Sightholder Sales and Auctions) for De Beers' third sales cycle of 2024, amounted to $445.00mn.
  • Insimbi’s (JO: ISBJ ) full-year earnings to fall as much as 60.0%: Small-cap metal alloys supplier Insimbi Industrial Holdings expects to report a 50.0%-60.0% drop in earnings for the year to end-February due partly to a challenging economic and operational environment in the second half of the financial year.

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