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Market Review, Commodities, Currencies, Economic & Corporate Update - 21.08.24

Published 2024/08/21, 09:58
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SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the red yesterday, as investors await US Federal Reserve (Fed) Chair Jerome Powell’s speech at the Jackson Hole symposium.
  • Retailers, Shoprite Holdings (JO:SHPJ) and Foschini Group (JO:TFGJ) dropped 1.7% and 1.3%, respectively.
  • On the flipside, gold miners, Harmony Gold Mining Co. (JO:HARJ), Gold Fields (JO:GFIJ), Sibanye Stillwater (JO:SSWJ) and Anglo American (JO:AGLJ) advanced 4.1%, 3.4%, 3.2% and 2.5%, respectively.
  • Diversified miners, Pan African Resources (JO:PANJ), Merafe Resources (JO:MRFJ) and Anglo American gained 3.5%, 2.6% and 1.2%, respectively.
  • Platinum miners, Anglo American Platinum (JO:AMSJ) and Impala Platinum (JO:IMPJ) rose 2.9% and 2.1%, respectively.
  • Pharmaceutical companies, Aspen Pharmacare Holdings (JO:APNJ), Adcock Ingram Holdings (JO:AIPJ) and Life Healthcare Group (JO:LHCJ) added 2.1%, 1.9% and 0.7%, respectively.
  • The JSE All Share index marginally declined to close at 83,783.31.

UK MARKET REVIEW

  • The UK market finished weaker yesterday, led by losses in telecommunication and energy sector stocks.
  • Telecommunications company, BT Group (LON:BT) dropped 6.4%, after CityFibre announced a deal with its existing partner Sky to offer broadband through CityFibre's network.
  • Retailers, JD Sports Fashion (LON:JD), Marks & Spencer Group (LON:MKS) and J Sainsbury (LON:SBRY) declined 4.4%, 1.9% and 1.7%, respectively.
  • Energy companies, both, Shell (LON:RDSa) and BP (LON:BP) shed 2.8%, each.
  • Water utilities companies, United Utilities Group (LON:UU) and Severn Trent (LON:SVT) decreased 1.9% and 1.3%, respectively.
  • Banking firms, HSBC Holdings (LON:HSBA), Standard Chartered (LON:STAN), Lloyds Banking Group (LON:LLOY) and NatWest Group (LON:NWG) fell 1.9%, 1.6%, 1.4% and 1.3%, respectively.
  • Energy utilities companies, Centrica (LON:CNA) and SSE (LON:SSE) eased 1.5% and 1.1%, respectively.
  • The FTSE 100 index declined 1.0% to close at 8,273.32.

US MARKET REVIEW

  • US markets ended lower yesterday, ahead of US Fed Chair Jerome Powell’s speech at Jackson Hole Economic Symposium.
  • Airplanes company, Boeing (NYSE:BA) dropped 4.2%, after the US Federal Aviation Administration issued a new airworthiness directive for the company's 787 Dreamliner.
  • On the contrary, cybersecurity company, Palo Alto Networks (NASDAQ:PANW) jumped 7.2%, after the company issued higher than expected revenue and profits forecasts for FY25.
  • Pharmaceutical company, Eli Lilly (NYSE:LLY) advanced 3.1%, after its weight-loss drug Zepbound showed a major decrease in Type 2 diabetes risk for pre-diabetic adults.
  • The S&P 500 index fell 0.2% to settle at 5,597.12, while the DJIA index declined 0.2% to close at 40,834.97.
  • The NASDAQ index eased 0.3% to end the trading session at 17,816.94.

ASIA MARKET REVIEW

  • Asian markets are trading lower this morning.
  • In Japan, chemical company, Sumitomo Chemical (TYO:4005) has shed 3.2%.
  • On the flipside, pharmaceutical company, Astellas Pharma (TYO:4503) has advanced 2.2%.
  • In Hong Kong, consumer electronics company, Xiaomi Corporation (HK:1810) has declined 1.8%.
  • On the other hand, real estate company, Hang Lung Properties (HK:0101) has gained 1.4%.
  • In South Korea, chemical company, ISU Chemical (KS:005950) has plunged 7.9%.
  • On the contrary, electronics company, Daidong Electronics (KS:008110) has surged 16.1%.
  • The Nikkei 225 index is trading 0.7% lower at 37,805.35.
  • The Hang Seng index has declined 0.9% to trade at 17,355.79, while the Kospi index is trading marginally lower at 2,695.23.

COMMODITIES

  • At 05:30 SAST today, Brent prices fell 0.2% to trade at $77.03/bl.
  • Yesterday, Brent prices fell 0.6% to settle at $77.20/bl, as supply concerns in the Middle East eased after Israel accepted a proposal to address ceasefire disagreements in Gaza. Meanwhile, the American Petroleum Institute (API) reported that crude oil inventories rose by 0.35mn bls in the week ended 16 August 2024.
  • At 05:30 SAST today, gold prices marginally advanced to trade at $2,513.15/oz. Yesterday, gold gained 0.4% to close at $2,512.98/oz, as a weaker dollar and a drop in the US Treasury yields boosted demand for the safe haven yellow metal.
  • Yesterday, copper declined 0.6% to close at $9,085.67/mt. Aluminium closed 1.9% higher at $2,477.11/mt.

CURRENCIES

  • Yesterday, the South African rand weakened against the US dollar.
  • The yield on benchmark government bonds were unchanged yesterday. The yield on the 2030 bond stood at 9.25%, while that for the longer-dated 2040 stood at 11.31%.
  • At 05:30 SAST, the US dollar is trading 0.1% lower against the South African rand at R17.7887, while the euro is trading 0.2% lower at R19.7785. At 05:30 SAST, the British pound has declined 0.2% against the South African rand to trade at R23.1735.
  • Yesterday, the euro advanced against most of the major currencies. In Germany, the producer price index (PPI) rose in July, in line with market expectations. In the eurozone, the CPI was unchanged for a third straight month in July.
  • At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.1121, while it has marginally weakened against the British pound to trade at GBP0.8538.

ECONOMIC UPDATES

  • In Switzerland, trade surplus narrowed to CHF4.89bn in July, compared to a revised surplus of CHF6.12bn recorded in the previous month.
  • In Germany, the producer price index (PPI) rose 0.2% on a MoM basis in July, in line with market expectations. The PPI had recorded a rise of 0.2% in the prior month.
  • In the eurozone, seasonally adjusted current account surplus widened to EUR51.00bn in June, compared to a surplus of EUR36.70bn recorded in the prior month.
  • In the eurozone, the consumer price index (CPI) recorded a flat reading on a MoM basis in July, in line with market expectations and compared to a rise of 0.2% recorded in the previous month.
  • In Canada, the CPI rose 0.4% on a MoM basis in July, more than market expectations for a rise of 0.3%. The CPI had declined 0.1% in the prior month.
  • In Japan, total merchandise trade balance recorded a deficit of JPY621.80bn in July, compared to a surplus of JPY224.00bn recorded in the previous month.

CORPORATE UPDATES

SOUTH AFRICA

  • NEPI Rockcastle N.V. (JO:NRPJ): The real estate company, in its 1H24 results, reported that its net rental and related income rose to EUR273.71mn from EUR241.18mn posted in the corresponding period of the previous year. Its diluted EPS rose 8.6% from the same period of the prior year to 45.41 Euro cents.
  • Sasol Limited (JO:SOLJ): The chemicals company, in its annual results for the year ended 30 June 2024, posted a turnover of R275.11bn, lower from R289.70bn posted in the prior year. The company also reported a diluted loss per share of R69.94, as compared to an EPS of R13.02 reported in the prior year.
  • No share buybacks in MTN’s immediate future: MTN (JO:MTNJ) will not be buying back its shares in the coming years, preferring instead to invest in its own growth.

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