SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green yesterday, boosted by gains in precious metal mining companies.
- Gold miners, Harmony Gold Mining Company (JO:HARJ), Gold Fields (JO:GFIJ), AngloGold Ashanti (JO:ANGJ) and Sibanye Stillwater (JO:SSWJ) jumped 8.7%, 6.5%, 5.2% and 2.9%, respectively.
- Diversified miners, Anglo American, Pan African Resources (JO:PANJ), Merafe Resources (JO:MRFJ) and Exxaro Resources (JO:EXXJ) advanced 3.2%, 2.1%, 1.4% and 1.0%, respectively.
- Telecommunications companies, Blue Label Telecoms (JO:BLUJ) and MTN Group (JO:MTNJ) gained 1.7% and 1.3%, respectively.
- On the flipside, property developers, Redefine Properties (JO:RDFJ), NEPI Rockcastle N.V. (JO:NRPJ), Vukile Property Fund (JO:VKEJ) and Attacq (JO:ATTJ) dropped 2.9%, 2.2%, 2.0% and 1.7%, respectively.
- The JSE All Share index advanced 0.2% to close at 86,582.35.
UK MARKET REVIEW
- The UK market finished firmer yesterday, amid rising optimism over further interest rate cuts by the Bank of England (BoE).
- Pest control company, Rentokil Initial (LON:RTO) surged 8.8%, after the company announced the departure of its North America finance Chief, along with the appointments of a new Chief Marketing Officer and Chief Operating Officer.
- Banking firms, Barclays (LON:BARC), NatWest Group (LON:NWG), Standard Chartered (LON:STAN) and Lloyds Banking Group (LON:LLOY) advanced 3.4%, 2.2%, 1.6% and 1.1%, respectively.
- On the other hand, paper and packaging company, Mondi (LON:MNDI) dropped 7.5%, after the company reported underlying core profit 36.0% lower from the previous quarter to EUR223.00mn ($242.00mn).
- The FTSE 100 index advanced 0.7% to close at 8,385.13.
US MARKET REVIEW
- US markets ended mostly higher yesterday, following stronger than expected US retail sales data.
- Semiconductor chip companies, Broadcom (NASDAQ:AVGO), Micron Technology (NASDAQ:MU) and Nvidia Corporation (NASDAQ:NVDA) advanced 2.7%, 2.6% and 0.9%, respectively.
- Energy companies, Chevron (NYSE:CVX) Energy Corporation and Diamondback Energy (NASDAQ:FANG) gained 1.7% and 0.8%, respectively.
- Financial services companies, American Express (NYSE:AXP) and Visa (NYSE:V) rose 1.5% and 1.0%, respectively.
- On the contrary, pharmaceutical companies, Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE) dropped 4.6% and 1.4%, respectively.
- The S&P 500 index marginally fell to settle at 5,841.47, while the DJIA index advanced 0.4% to close at 43,239.05.
- The NASDAQ index marginally climbed to end the trading session at 18,373.61.
ASIA MARKET REVIEW
- Asian markets are trading mostly higher this morning.
- In Japan, automatic control equipment company, SMC Corporation (TYO:6273) has gained 2.0%.
- On the flipside, consumer electronics company, Sony Group (NYSE:SONY) has declined 1.4%.
- In Hong Kong, consumer electronics company, Lenovo Group (HK:0992) has advanced 5.1%.
- On the other hand, insurance company, AIA Group (HK:1299) has eased 0.8%.
- In South Korea, semiconductor company, Hanmi Semiconductor (KS:042700) has plunged 8.6%.
- On the contrary, cosmetics company, Hankook Cosmetics Manufacturing Company (KS:003350) has surged 12.5%.
- The Nikkei 225 index is trading 0.4% higher at 39,058.32.
- The Hang Seng index has gained 0.8% to trade at 20,245.90, while the Kospi index is trading 0.7% lower at 2,590.90.
COMMODITIES
- At 05:30 SAST today, Brent prices rose 0.2% to trade at $74.59/bl.
- Yesterday, Brent prices rose 0.3% to settle at $74.45/bl, following a drop in crude and fuel inventories. The US Energy Information Administration (EIA) reported that the US crude inventories fell by 2.19mn bls in the week ended 11 October 2024.
- At 05:30 SAST today, gold prices advanced 0.6% to trade at $2,708.90/oz. Yesterday, gold gained 0.7% to close at $2,692.55/oz, as uncertainty surrounding the US presidential elections and geopolitical tensions in the Middle East boosted demand for the safe haven yellow metal.
- Yesterday, copper declined 0.4% to close at $9,384.75/mt. Aluminium closed 1.2% lower at $2,553.50/mt.
CURRENCIES
- Yesterday, the South African rand weakened against the US dollar. In the US, the number of initial jobless claims unexpectedly dropped in the week ended 11 October 2024. Also, industrial production fell more than expected in September. Meanwhile, the Philadelphia Fed manufacturing index rose more than expected in October.
- The yield on benchmark bonds rose yesterday. The yield on the SA 10-year generic bond climbed to 10.59%, while that for SA 20-year generic bond rose to 11.37%.
- At 05:30 SAST, the US dollar is trading 0.2% lower against the South African rand at R17.6302, while the euro is trading 0.2% lower at R19.106. At 05:30 SAST, the British pound has declined 0.2% against the South African rand to trade at R22.9546.
- Yesterday, the euro mostly declined against most of the major currencies. In the eurozone, the consumer price inflation dropped in September, in line with market expectations.
- At 05:30 SAST, the euro advanced 0.1% against the US dollar to trade at $1.0839, while it has marginally weakened against the British pound to trade at GBP0.8324.
ECONOMIC UPDATES
- In Switzerland, trade surplus widened to CHF4.95bn in September, compared to a revised surplus of CHF4.74bn recorded in the previous month.
- The European Central Bank (ECB) slashed its key interest rate by 25 basis points to 3.25%, in line with market consensus. In the eurozone, the consumer price index (CPI) dropped 0.1% on a MoM basis in September, in line with market expectations. The CPI had recorded a rise of 0.1% in the previous month.
- In the eurozone, trade balance narrowed to a level of EUR11.00bn in August, compared to a revised surplus of EUR13.70bn recorded in the previous month.
- In the US, initial jobless claims unexpectedly fell to a level of 241.00K in the week ended 11 October 2024, compared to a revised level of 260.00K recorded in the previous week.
- In the US, retail sales advanced 0.4% on a MoM basis in September, more than market expectations and compared to a rise of 0.1% in the previous month.
- In the US, the Philadelphia Fed manufacturing index rose to a level of 10.30 in October, more than market expectations for a rise to a level of 3.00. The Philadelphia Fed manufacturing index had recorded a level of 1.70 in the previous month.
- In the US, industrial production fell 0.3% on a MoM basis in September, more than market expectations for a drop of 0.2%. Industrial production had recorded a revised rise of 0.3% in the prior month.
- In Japan, the national consumer price index (CPI) rose 2.5% on a YoY basis in September, compared to a rise of 3.0% recorded in the previous month.
- In China, gross domestic product (GDP) rose 4.6% on a YoY basis in 3Q24, more than market expectations and compared to a rise of 4.7% in the previous quarter.
- In China, industrial production rose 5.4% on a YoY basis in September, more than market expectations for a rise of 4.6%. The industrial production had recorded a rise of 4.5% in the previous month.
- In China, retail sales rose 3.2% on a YoY basis in September, more than market expectations for a rise of 2.5%. Retail sales had advanced 2.1% in the prior month.
CORPORATE UPDATES
SOUTH AFRICA
- Mondi Plc (LON:MNDI): The paper and packaging company, in its 3Q24 trading update, revealed that underlying EBIDTA fell to EUR223.00mn, lower as compared with the previous quarter. This was primarily due to more planned maintenance shuts and a forestry fair value loss.
- PSG Financial Services Limited (JO:KSTJ): The financial services company, in its 1H25 results, indicated that insurance revenue rose to R1.27bn from a restated R1.02bn in the corresponding period of the previous year. Its diluted EPS increased 27.8% from the same period of the prior year to 47.80c.
- Pick ‘n Pay Stores Limited (JO:PIKJ): The retail company, in its 1H25 trading update, revealed that group sales increased 3.7% as compared with the prior year. Boxer sales advanced 12.0%, driven by strong like- for-like sales, complemented by 12 net new store openings and Clothing sales growth in standalone stores was 9.8%. Additionally, the company expects diluted loss per share to be 30.0% to 40.0%, lower as compared with 100.86c recorded in the previous year. Also, it expects headline loss per share to be 10.0% to 20.0%, lower as compared with 117.48c recorded in the previous year. Furthermore, the company intends to release its 1H25 results on 28 October 2024.
- DRDGold Limited (JO:DRDJ): The gold production company, in its operating update for the quarter ended 30 September 2024, stated that gold production increased to 42,407.00koz from 39,481.00oz recorded in the previous quarter. Also, gold sales increased 4.3% to 41,442.00koz. Adjusted EBITDA increased by 17% from the previous quarter to R680.80mn primarily due to the increased gold sold and the accompanying higher gold price received.