SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green yesterday, fueled by optimism surrounding anticipated US rate cuts.
- Retailers, Cashbuild (JO:CSBJ), Foschini Group (JO:TFGJ), Pick ‘n Pay Stores (JO:PIKJ), Mr Price Group (JO:MRPJ) and Italtile (JO:ITEJ) surged 7.8%, 2.7%, 2.3%, 2.1% and 1.9%, respectively.
- Platinum miners, Anglo American Platinum (JO:AMSJ), Impala Platinum Holdings (JO:IMPJ) and Northam Platinum Holdings (JO:NPHJ) jumped 4.8%, 2.7% and 2.1%, respectively.
- Gold miners, Harmony Gold Mining Co. (JO:HARJ), Sibanye Stillwater (JO:SSWJ) and Gold Fields (JO:GFIJ) advanced 4.3%, 4.0% and 2.9%, respectively.
- Telecommunications companies, Vodacom Group (JO:VODJ), Blue Label Telecoms (JO:BLUJ) and MTN Group (JO:MTNJ) advanced 2.1%, 1.9% and 1.8%, respectively.
- The JSE All Share index climbed 1.2% to close at 83,799.31.
UK MARKET REVIEW
- The UK market finished firmer yesterday, supported by gains in metal mining stocks.
- Property developer, Barratt Developments (LON:BDEV) surged 3.4% after a competition regulator condition for its Redrow acquisition was waived, allowing legal completion Miners, Glencore (LON:GLEN), Endeavour Mining (LON:EDV), Fresnillo (LON:FRES), Anglo American and Rio Tinto (LON:RIO) jumped 2.8%, 2.6%, 2.5%, 2.3% and 1.7%, respectively.
- Retailers, Burberry Group (LON:BRBY) and Next added 2.3% and 1.8%, respectively.
- On the flipside, aerospace company, BAE Systems (LON:BAES) eased 0.8%, amid reports that Germany might reduce its military aid to Ukraine.
- The FTSE 100 index advanced 0.5% to close at 8,356.94.
US MARKET REVIEW
- US markets ended higher yesterday, as investors focused on the Democratic National Convention and Jackson Hole symposium.
- Chipmaking company, Advanced Micro Devices (NASDAQ:AMD) added 4.5% after announcing plans to acquire server maker ZT Systems for $4.90bn, aiming to enhance its artificial intelligence portfolio and compete more effectively with Nvidia (NASDAQ:NVDA).
- Technology companies, Intel Corporation (NASDAQ:INTC), Cisco Systems (NASDAQ:CSCO), Salesforce (NYSE:CRM) and Microsoft Corporation (NASDAQ:MSFT) surged 3.1%, 1.1%, 0.9% and 0.7%, respectively.
- Financial services companies, American Express (NYSE:AXP) and JPMorgan Chase & Co. (NYSE:JPM), added 0.9% and 0.7%, respectively.
- The S&P 500 index rose 1.0% to settle at 5,608.25, while the DJIA index advanced 0.6% to close at 40,896.53.
- The NASDAQ index climbed 1.4% to end the trading session at 17,876.77.
ASIA MARKET REVIEW
- Asian markets are trading mostly higher this morning, following overnight gains on Wall Street.
- In Japan, pharmaceutical company, Sumitomo Pharma (TYO:4506) Co., has surged 4.4%.
- On the flipside, food company, Ajinomoto Co. (TYO:2802), dropped1.4%.
- In Hong Kong, beverage company, Budweiser Brewing Co. APAC (HK:1876) has shed 3.4%.
- On the other hand, automobile company, Li Auto (NASDAQ:LI) rose1.7%.
- In South Korea, chemical company, Hannong Chemicals (KS:011500) has surged 11.1%.
- On the contrary, pharmaceutical company, Kukje Pharma (KS:002720) Co., has declined 4.7%.
- The Nikkei 225 index is trading 1.7% higher at 38,015.87.
- The Hang Seng index has dropped 0.3% to trade at 17,519.72, while the Kospi index is trading 0.9 % higher at 2,698.08.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 0.6% to trade at $77.16/bl, amid easing geopolitical tensions and reduced demand from China.
- Yesterday, Brent prices dropped by 2.5% to settle at $77.66/bl, driven by expectations that successful peace talks in the Middle East could mitigate supply risks. Additionally, China's economic slowdown is likely to lower demand.
- At 05:30 SAST today, gold prices declined 0.1% to trade at $2,500.93/oz. Yesterday, gold declined 0.1% to close at $2,503.73/oz, as investors await cues from the US Federal Reserve (Fed) on potential rate cuts.
- Yesterday, copper rose 2.3% to close at $9,142.47/mt. Aluminium closed 2.7% higher at $2,430.42/mt.
CURRENCIES
- Yesterday, the South African rand strengthened against the US dollar. In the US, leading economic indicator declined more than anticipated in July.
- The yield on benchmark government bonds were mixed yesterday. The yield on the 2030 bond dropped to 9.25%, while that for the longer-dated 2040 issue rose to 11.31%.
- At 05:30 SAST, the US dollar is trading 0.2% higher against the South African rand at R17.7354, while the euro is trading 0.1% higher at R19.6445. At 05:30 SAST, the British pound has gained 0.1% against the South African rand to trade at R23.0197.
- Yesterday, the euro weakened against most of the major currencies.
- At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.1077, while it has marginally gained against the British pound to trade at GBP0.8535.
ECONOMIC UPDATES
- In the US, the CB leading economic index fell by 0.6% on a MoM basis in July, exceeding market expectations of a 0.3% decline. Leading Economic Index had recorded a drop of 0.2% in the previous month.
- The People’s Bank of China’s (PBoC) kept its key interest rate steady at 3.35%, in line with market expectations.
- In New Zealand, trade balance recorded a deficit of NZD0.96bn in July, compared to a trade surplus of NZD0.58bn in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- Absa Group Limited (JO:ABGJ): The financial services company reported net interest income of R35.31bn in its interim results for the six months ending 30 June 2024, an increase from R33.07bn reported in the same period of the previous year. Diluted EPS stood at 1,187.30c, compared with 1,298.40c posted in the corresponding period of the prior year. Additionally, the company announced the appointment of Charles Russon as an Interim Chief Executive Officer (CEO) of Absa Group and Absa Bank, effective 15 October 2024, subject to regulatory approval, succeeding Arrie Rautenbach who intends to take early retirement from the group.
- MTN Group Limited (JO:MTNJ): The telecommunication company, in its 1H24 results, posted a revenue of R90.84bn, a decrease of 19.8% than that posted in the corresponding period of the prior year. The company also reported a diluted loss per share of 409.00c, as compared to an EPS of 225.00c reported in the same period of the prior year.
- Thungela Resources Limited (JO:TGAJ): The mining company, in its interim results for the six months ended 30 June 2024, reported revenues of R16.75bn, up from R14.36bn posted in the same period of the previous year. However, diluted EPS dropped 57.9% to 931.00c reported in the corresponding period of the previous year.
- Tiger Brands Limited (JO:TBSJ): The consumer goods company announced that the Board has decided to extend CEO Tjaart's tenure by three years, until 31 December 2028, due to his positive progress with the group's strategic turnaround plan. This includes successfully appointing new executive Managing Directors, The implementation of a new operating model, and advancements in Group culture and staff engagement. The extension aims to ensure leadership stability and support the Group's succession planning.