SOUTH AFRICA MARKET REVIEW
- South African markets closed in the red yesterday, as investors awaited US Federal Reserve’s monetary policy outlook.
- Platinum miners, Impala Platinum (JO:IMPJ), Anglo American Platinum (JO:AMSJ) and Northam Platinum (JO:NPHJ) plunged 8.6%, 6.2% and 5.5%, respectively.
- Retailers, Cashbuild (JO:CSBJ), Shoprite Holdings (JO:SHPJ) and Clicks Group (JO:CLSJ) dropped 8.5%, 2.4% and 2.1% respectively.
- Gold miners, Sibanye Stillwater (JO:SSWJ), AngloGold Ashanti (JO:ANGJ) and Gold Fields (JO:GFIJ) shed 5.6%, 5.5% and 0.5%, respectively.
- Food companies, Tiger Brands (JO:TBSJ), Famous Brands (JO:FBRJ) and Astral Foods (JO:ARLJ) declined 2.7%, 1.9% and 1.4%, respectively.
- Lenders, Capitec Bank Holdings (JO:CPIJ) and FirstRand (JO:FSRJ) both eased 1.3%, each.
- On the flipside, diversified miners, Exxaro Resources (JO:EXXJ) and Kumba Iron Ore (JO:KIOJ) jumped 8.4% and 6.5%, respectively.
- The JSE All Share index declined 0.8% to close at 72,430.44.
UK MARKET REVIEW
- The UK market finished weaker yesterday, ahead of Bank of England's (BoE) monetary policy decision for further insights on interest rates.
- Construction materials company, Marshalls (LON:MSLH) plunged 8.5%, after the company reported lower profit in FY23 and forecasted a drop in FY24 revenue citing slower-than-expected recovery in the construction market.
- Water utilities companies, United Utilities Group (LON:UU) and Severn Trent (LON:SVT) dropped 3.0% and 2.4%, respectively.
- Healthcare company, Haleon (LON:HLN) declined 2.3%, after Pfizer (NYSE:PFE) said it would reduce its stake in the company to about 24%.
- On the other hand, electrical retailer, Currys (LON:CURY) jumped 6.0%, after the company reported stronger-than-expected sales and raised its profit outlook.
- Tobacco companies, British American Tobacco (JO:SNHJ) and Imperial Brands (LON:IMB) advanced 2.5% and 1.3%, respectively.
- The FTSE 100 index declined 0.1% to close at 7,722.55.
US MARKET REVIEW
- US markets ended higher yesterday, boosted by gains in technology sector stocks and ahead of the US Fed's monetary policy meeting due this week.
- Electrical vehicles company, Tesla (NASDAQ:TSLA) jumped 6.3%, after the company announced plans to increase the price of its Model Y EVs in parts of Europe.
- Google’s parent, Alphabet (NASDAQ:GOOGL) advanced 4.6%, following a media report that revealed that Apple (NASDAQ:AAPL) is in talks to build Google's Gemini AI engine into the iPhone.
- Technology companies, Adobe (NASDAQ:ADBE) and Salesforce (NYSE:CRM) gained 4.4% and 2.1%, respectively.
- Media and entertainment companies, Netflix (NASDAQ:NFLX), Walt Disney (NYSE:DIS) and Comcast Corporation (NASDAQ:CMCSA) rose 2.1%, 1.7% and 0.8%, respectively.
- The S&P 500 index rose 0.6% to settle at 5,149.42, while the DJIA index advanced 0.2% to close at 38,790.43.
- The NASDAQ index climbed 0.8% to end the trading session at 16,103.45.
ASIA MARKET REVIEW
- Asian markets are trading lower this morning, ahead of the Bank of Japan’s (BoJ) monetary policy decision.
- In Japan, pharmaceutical company, Chugai Pharmaceutical (TYO:4519) has declined 2.7%.
- On the flipside, chemicals company, Mitsui Chemicals (TYO:4183) has advanced 2.8%.
- In Hong Kong, insurance company, AIA Group (HK:1299) has shed 3.2%.
- On the other hand, infrastructure company, CK Infrastructure Holdings (HK:1038) has shed 0.9%.
- In South Korea, automobile company, KR Motors (KS:000040) has plunged 6.6%.
- On the contrary, automobile parts company, Hwacheon Machinery (KS:000850) has surged 29.9%.
- The Nikkei 225 index is trading 0.4% lower at 39,596.29.
- The Hang Seng index has declined 0.6% to trade at 16,637.35, while the Kospi index is trading 1.3% lower at 2,649.77.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 0.1% to trade at $86.81/bl.
- Yesterday, Brent prices rose 1.8% to settle at $86.89/bl, following a drop in crude exports from Iraq and Saudi Arabia as well as signs of stronger demand and economic growth in China and the US.
- At 05:30 SAST today, gold prices advanced 0.1% to trade at $2,161.23/oz. Yesterday, gold gained 0.2% to close at $2,159.99/oz, ahead of the US Fed's policy decision and a series of other central bank meetings due this week.
- Yesterday, copper rose 0.2% to close at $8,985.96/mt. Aluminium closed marginally lower at $2,273.40/mt.
CURRENCIES
- Yesterday, the South African rand weakened against the US dollar. In the US, the NAHB housing market index unexpectedly advanced to 8-month high in March.
- The yield on benchmark government bonds rose yesterday. The yield on the 2030 bond advanced to 10.75%, while that for the longer-dated 2040 issue rose to 13.26%.
- At 05:30 SAST, the US dollar is trading marginally higher against the South African rand at R18.9523, while the euro is trading 0.1% higher at R20.6121. At 05:30 SAST, the British pound has slightly gained against the South African rand to trade at R24.1244.
- Yesterday, the euro mostly declined against most of the major currencies. In the eurozone, the consumer price inflation rose in line with market expectations in February.
- At 05:30 SAST, the euro marginally advanced against the US dollar to trade at $1.0876, while it has gained 0.1% against the British pound to trade at GBP0.8547.
ECONOMIC UPDATES
- In the eurozone, seasonally adjusted trade surplus widened to EUR28.10bn in January, compared to a revised surplus of EUR14.30bn recorded in the previous month.
- In the eurozone, the consumer price index (CPI) rose 0.6% on a MoM basis in February, in line with market expectations. The CPI had recorded a similar rise in the prior month.
- In the US, the NAHB housing market index rose to a level of 51.00 in March, compared to a level of 48.00 recorded in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- Discovery Limited (JO:DSBPp): The financial services company, in its voluntary trading update for the six-month period ended 31 December 2023, revealed that it expects EPS to be between 478.10c and 502.50c, as compared with revised 487.90c recorded in the previous year. Also, it expects HEPS to be between 483.40c and 508.40c, as compared with revised 498.40c recorded in the previous year.
- OUTsurance Group Limited: The financial services company, in its 1H24 results, stated that its insurance revenue increased to R15.33bn from R12.87bn posted in the corresponding period of the previous year. Its diluted EPS rose 29.9% from the same period of the prior year to 122.00c.
- Sun International Limited (JO:SUIJ): The gaming company, in its FY23 results, indicated that its income rose to R12.10bn from R11.30bn posted in the corresponding period of the previous year. Its diluted EPS stood at 491.00c, compared with 222.00c recorded in the corresponding period of the previous year.
- JSE Limited: The stock exchange company, in its FY23 results, indicated that its revenue rose to R2.81bn from R2.65bn posted in the corresponding period of the previous year. Its diluted EPS increased 11.2% from the same period of the prior year to 1,001.90c.
- Merafe Resources Limited (JO:MRFJ): The mining company, in its FY23 results, reported that its revenue advanced 16.4% from the same period of the preceding year to R9.92bn. Its diluted EPS stood at 70.10c, compared with 56.40c recorded in the corresponding period of the previous year.
- Sibanye Stillwater Limited (JO:SSWJ): The gold mining company announced that it has successfully completed acquisition of Reldan Group of Companies for a final cash purchase consideration of $155.90mn.
- Oil inches higher on expectation of more strikes on Russian refineries: Oil prices ticked up, extending gains from last week when prices rose nearly 4.0% on the view that supply was tightening, with the risks heightened by further attacks on Russian energy infrastructure.