Market Review, Commodities, Currencies, Economic & Corporate Update - 21.05.24

  • Market Overview

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the green yesterday, driven by increases in precious metal stocks.
  • Gold Fields (JO: GFIJ ), Harmony Gold Mining Company (JO: HARJ ), AngloGold Ashanti (JO: ANGJ ) and DRD Gold (JO: DRDJ ) climbed 4.1%, 2.5%, 2.2% and 1.8%, respectively.
  • Consumer staple companies, Astral Foods (JO: ARLJ ) and RCL Foods (JO: RCLJ ) advanced 4.0% and 1.0%, respectively.
  • Transportation and logistics companies, Grindrod (JO: GNDJ ) and KAP (JO: KAPJ ) surged 3.9% and 1.1%, respectively.
  • Diversified miners, African Rainbow Minerals (JO: ARIJ ), South32 (JO: S32J ), Pan African Resources (JO: PANJ ) and Exxaro Resources (JO: EXXJ ) gained 3.2%, 2.5%, 2.0% and 1.8%, respectively.
  • On the flipside, real estate companies, Lighthouse Properties (JO: LTEJ ), Equites Property Fund (JO: EQUJ ), Vukile Property Fund (JO: VKEJ ) and Growthpoint Properties (JO: GRTJ ) shed 1.2%, 1.1%, 1.0% and 0.9%, respectively.
  • The JSE All Share index closed 0.7% higher at 80,072.99.

UK MARKET REVIEW

  • The UK market finished firmer yesterday, as rising gold and copper prices boosted mining sector stocks.
  • Miners, Fresnillo (LON: FRES ), Endeavour Mining (LON: EDV ), Antofagasta (LON: ANTO ) and Glencore (JO: GLNJ ) advanced 4.0%, 3.3%, 1.2% and 0.9%, respectively, amid surge in gold and copper prices.
  • Aerospace sector companies, Rolls-Royce Holdings (LON: RR ) and BAE Systems (LON: BAES ) gained 4.5% and 0.8%, respectively.
  • On the contrary, retailers, Burberry Group (LON: BRBY ), Ocado Group (LON: OCDO ) and Next (LON: NXT ) shed 3.0%, 2.4% and 0.6%, respectively.
  • Water utility companies, United Utilities Group (LON: UU ) and Severn Trent (LON: SVT ) eased 1.3% and 0.5%, respectively.
  • Consumer goods companies, Reckitt Benckiser Group (LON: PSN ) and Unilever (LON: ULVR ) declined 1.2% and 0.7%, respectively.
  • The FTSE 100 index marginally advanced to close at 8,424.20.

US MARKET REVIEW

  • US markets ended mostly in the green yesterday, driven by gains in technology sector stocks ahead of Nvidia (NASDAQ: NVDA ) results.
  • Technology companies, Micron Technology (NASDAQ: MU ), Microsoft Corporation (NASDAQ: MSFT ), Intel Corporation (NASDAQ: INTC ) and Apple (NASDAQ: AAPL ) jumped 3.0%, 1.2%, 0.9% and 0.6%, respectively.
  • Cruise company, Norwegian Cruise Line (NYSE: NCLH ) gained 7.6%, after the company lifted its annual profit forecast. On the other hand, JPMorgan Chase & Co. (NYSE: JPM ), Goldman Sachs Group (NYSE: GS ) and Visa (NYSE: V ) shed 4.5%, 1.0% and 0.6%, respectively.
  • Insurance companies, Travelers Cos (NYSE: TRV ). and UnitedHealth Group (NYSE: UNH ) eased 1.9% and 1.4%, respectively.
  • The S&P 500 index gained 0.1% to settle at 5,308.13, while the DJIA index declined 0.5% to close at 39,806.77.
  • The NASDAQ index climbed 0.7% to end the trading session at 16,794.87.

ASIA MARKET REVIEW

  • Asian markets are trading mostly lower this morning. In Japan, machinery manufactruing company, Ebara Corporation (TYO: 6361 ) has advanced 2.3%.
  • On the flipside, food company, Nisshin Seifun Group (TYO: 2002 ) has eased 2.5%.
  • In Hong Kong, financial services company, Hang Seng Bank (HK: 0011 ) has added 0.8%.
  • On the other hand, pharmaceutical company, Sino Biopharmaceutical (HK: 1177 ) has shed 5.1%.
  • In South Korea, electronics company, Samsung Electronics (KS: 005930 ) has declined 0.6%.
  • On the contrary, cosmetics company, Hankook Cosmetics (KS: 003350 ) Company has jumped 10.2%.
  • The Nikkei 225 index is trading 0.2% higher at 39,135.91.
  • The Hang Seng index has declined 2.0% to trade at 19,234.12, while the Kospi index is trading 0.6% lower at 2,725.86.

COMMODITIES

  • At 05:30 SAST today, Brent prices decreased by 0.6% to trade at $83.23/bl.
  • Yesterday, Brent prices fell 0.6% to settle at $83.71/bl, after the US Federal Reserve (Fed) officials said they were awaiting more signs that inflation was declining before the central bank starts cutting interest rates.
  • At 05:30 SAST today, gold prices declined 0.6% to trade at $2,412.07/oz. Yesterday, gold gained 0.5% to close at $2,426.27/oz, influenced by hawkish comments from the US Fed.
  • Yesterday, copper rose 2.4% to close at $10,597.68/mt. Aluminium closed 0.2% higher at $2,620.15/mt.

CURRENCIES

  • Yesterday, the South African rand weakened against the US dollar.
  • The yield on benchmark government bonds increased yesterday. The yield on the 2030 bond rose to 10.55%, while that for the longer-dated 2040 issue rose to 12.89%.
  • At 05:30 SAST, the US dollar is trading 0.1% higher against the South African rand at R18.2086, while the euro is trading 0.1% higher at R19.7664. At 05:30 SAST, the British pound has gained 0.2% against the South African rand, trading at R23.1381.
  • Yesterday, the euro mostly declined against most of the major currencies.
  • At 05:30 SAST, the euro marginally slipped against the US dollar, trading at $1.0857, while it has marginally weakened against the British pound trading at GBP0.8545.

ECONOMIC UPDATES

  • In Japan, the tertiary industry index registered a drop of 2.4% on an MoM basis in March. In the prior month, the tertiary industry index had recorded a revised rise of 2.2%.
  • In Australia, the Westpac consumer confidence eased 0.3% in May, compared to a drop of 2.4% recorded in the prior month.

CORPORATE UPDATES

SOUTH AFRICA

  • Netcare Limited (JO: NTCJ ): The pharmaceutical company, in its interim results for the six months ended 31 March 2024, reported that its revenue increased to R12.03bn, compared with R11.54bn posted in the corresponding period of the previous year. Its diluted EPS rose 6.6% from the same period of the prior year to 48.70c.
  • Astral Foods Limited (JO: ARLJ ): The food company, in its 1H24 results, stated that its revenue increased to R10.36bn from R9.96bn posted in the corresponding period of the previous year. Its diluted EPS stood at 914.00c, compared with 160.00c recorded in the corresponding period of the previous year.
  • Famous Brands Limited (JO: FBRJ ): The food company, in its annual results for the year ended 29 February 2024, indicated that its revenue rose to R8.02bn from R7.44bn posted in the previous year. Its diluted EPS decreased 12.6% from the prior year to 457.00c.
  • Altron Limited (JO: AELJ ): The technology company, in its FY24 results, reported that its revenue declined 2.3% from the preceding year to R8.25bn. Its diluted loss per share stood at 42.00c, compared with 1.00c recorded in the previous year.

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