SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green on Wednesday, buoyed by gains in retail and mining sector stocks.
- Retailers, Pick ‘n Pay Stores (JO:PIKJ), Cashbuild (JO:CSBJ), Shoprite Holdings (JO:SHPJ) and Mr Price Group (JO:MRPJ) surged 9.1%, 5.9%, 2.2% and 1.6%, respectively.
- Platinum miners, Anglo American Platinum (JO:AMSJ), Northam Platinum (JO:NPHJ) and Impala Platinum (JO:IMPJ) jumped 7.5%, 6.5% and 4.8%, respectively.
- Diversified miners, Kumba Iron Ore (JO:KIOJ), Exxaro Resources (JO:EXXJ) and Anglo American (JO:AGLJ) advanced 4.5%, 2.7% and 1.4%, respectively.
- Gold miners, Harmony Gold Mining (JO:HARJ), Gold Fields (JO:GFIJ) and AngloGold Ashanti (JO:ANGJ) gained 4.4%, 3.3% and 0.7%, respectively.
- On the flipside, property developers, Delta Property Fund (JO:DLTJ), Growthpoint Properties (JO:GRTJ) and Redefine Properties (JO:RDFJ) dropped 5.9%, 2.0% and 1.5%, respectively.
- The JSE All Share index advanced 0.8% to close at 72,419.69.
UK MARKET REVIEW
- The UK market finished firmer yesterday, as financial sector stocks rose following the Bank of England’s (BoE) decision to keep its interest rates unchanged.
- Retailer, Next (LON:NXT) jumped 6.7%, after the company reported higher profits in FY23.
- Real estate companies, Berkeley Group Holdings (LON:BKGH), Land Securities Group (LON:LAND) and Barratt Developments (LON:BDEV) advanced 3.7%, 3.2% and 2.2%, respectively.
- Banking firms, Barclays (LON:BARC), NatWest Group (LON:NWG), Lloyds Banking Group (LON:LLOY) and Standard Chartered (LON:STAN) increased 3.5%, 3.2%, 2.9% and 2.8%, respectively.
- Miners, Antofagasta (LON:ANTO), Glencore (LON:GLEN) (JO:GLNJ) and Fresnillo (LON:FRES) gained 3.5%, 2.8% and 2.2%, respectively.
- Insurance companies, Prudential (LON:PRU), Legal & General Group (LON:LGEN) and Aviva (LON:AV) rose 1.9%, 1.8% and 1.7%, respectively.
- The FTSE 100 index advanced 1.9% to close at 7,882.55.
US MARKET REVIEW
- US markets ended higher yesterday, amid strength in semiconductor chip stocks and as the US Federal Reserve (Fed) reassured investors about the prospects for rate cuts this year.
- Semiconductor company, Micron Technology (NASDAQ:MU) surged 14.1%, after the company reported profits in 2Q24 and provided strong revenue forecast for 3Q24.
- On the flipside, information technology company, Accenture (NYSE:ACN) plunged 9.3%, after the company slashed its annual revenue forecast, citing economic uncertainty weighing on consulting revenues.
- Technology company, Apple (NASDAQ:AAPL) dropped 4.1%, after the US Department of Justice sued the company alleging that it monopolized smartphone markets.
- The S&P 500 index rose 0.3% to settle at 5,241.53, while the DJIA index advanced 0.7% to close at 39,781.37.
- The NASDAQ index climbed 0.2% to end the trading session at 16,401.84.
ASIA MARKET REVIEW
- Asian markets are trading mostly lower this morning.
- In Japan, airlines company, Japan Airlines (TYO:9201) gained 2.7%.
- On the flipside, pharmaceutical company, Chugai Pharmaceutical (TYO:4519) has declined 3.6%.
- In Hong Kong, insurance company, Ping An Insurance (HK:2318) has dropped 5.8%.
- On the other hand, real estate company, Henderson Land Development (OTC:HLDCY) has advanced 3.3%.
- In South Korea, infrastructure support services company, Doosan Corporation (KS:000157) has shed 4.7%.
- On the contrary, firefighting vehicles and bio-ethanol products company, Enplus (KS:074610) has surged 12.2%.
- The Nikkei 225 index is trading 0.1% higher at 40,844.53.
- The Hang Seng index has dropped 2.7% to trade at 16,414.41, while the Kospi index is trading 0.4% lower at 2,743.19.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 0.7% to trade at $85.19/bl.
- Yesterday, Brent prices fell 0.2% to settle at $85.78/bl, amid weaker US demand. Moreover, the US unveiled draft UN resolution calling for a ceasefire in Gaza.
- At 05:30 SAST today, gold prices declined 0.3% to trade at $2,174.05/oz. Yesterday, gold declined 0.2% to close at $2,180.81/oz, as a stronger greenback dented demand for the precious yellow metal.
- Yesterday, copper rose 1.0% to close at $8,873.10/mt. Aluminium closed marginally lower at $2,284.35/mt.
CURRENCIES
- Yesterday, the South African rand weakened against the US dollar. In the US, existing home sales advanced to its highest level in a year in February. Meanwhile, the Philadelphia Fed manufacturing index fell less than expected in March. Also, initial jobless claims unexpectedly declined in the week ended 15 March 2024.
- The yield on benchmark government bonds fell on Wednesday. The yield on the 2030 bond declined to 10.68%, while that for the longer-dated 2040 issue fell to 13.10%.
- At 05:30 SAST, the US dollar is trading 0.6% higher against the South African rand at R18.9296, while the euro is trading 0.3% higher at R20.5112. At 05:30 SAST, the British pound has gained 0.4% against the South African rand to trade at R23.9205.
- Yesterday, the euro mostly advanced against most of the major currencies. In Germany, the HCOB manufacturing PMI contracted slightly in March, whereas the services PMI came close to stabilization. In the eurozone, the services PMI expanded for a second straight month. Meanwhile, the manufacturing PMI softened. In the UK, S&P Global manufacturing PMI rose to a 20-month high in March. Meanwhile, the S&P Global services PMI declined to a 3-month low in March. Moreover, the Bank of England (BoE) kept its key policy rate unchanged for a fifth straight session.
- At 05:30 SAST, the euro slipped 0.2% against the US dollar to trade at $1.0839, while it has marginally weakened against the British pound to trade at GBP0.8578.
ECONOMIC UPDATES
- In South Africa, the consumer price index (CPI) rose to 5.6% on a YoY basis in February, more than market expectations for a rise of 5.5%. The CPI stood at 5.3% in the previous month.
- In South Africa, retail sales unexpectedly dropped 2.1% on a YoY basis in January, compared to a revised rise of 3.2% recorded in the previous month.
- In the UK, the CPI rose 0.6% on a MoM basis in February, less than market expectations for a rise of 0.7%. The CPI had recorded a revised drop of 0.6% in the prior month.
- In the UK, the S&P Global manufacturing PMI climbed to a level of 49.90 in March, more than market expectations and compared to a level of 47.50 in the previous month.
- In the UK, the S&P Global services PMI unexpectedly declined to a level of 53.40 in March, compared to a level of 53.80 recorded in the prior month.
- The Bank of England (BoE) maintained its key interest rate unchanged at 5.25%, in line with market expectations.
- In the UK, the GfK consumer confidence index unexpectedly remained unchanged at -21.00 in March, compared to market expectations for a rise to a level of -19.00.
- In Germany, the HCOB manufacturing PMI unexpectedly dropped to a level of 41.60 in March, compared to a level of 42.50 recorded in the previous month.
- In Germany, the HCOB services PMI rose to a level of 49.80 in March, more than market expectations for a rise to a level of 48.80. The services PMI had recorded a level of 48.30 in the prior month.
- In the eurozone, the HCOB manufacturing PMI unexpectedly fell to a level of 45.70 in March, compared to a level of 46.50 recorded in the prior month.
- In the eurozone, the preliminary consumer confidence index rose to a level of -14.90 in March, more than market expectations for a rise to a level of -15.00. The consumer confidence index had recorded a level of -15.50 in the previous month.
- In the eurozone, the HCOB services PMI advanced to a level of 51.10 in March, more than market expectations for a rise to a level of 50.50. The HCOB services PMI had recorded a level of 50.20 in the prior month.
- In the US, the MBA mortgage applications dropped 1.6% in the week ended 15 March 2024, compared to a rise of 7.1% recorded in the prior week.
- The US Federal Reserve kept its key interest rate unchanged at 5.5%, in line with market expectations.
- In the US, initial jobless claims unexpectedly fell to a level of 210.00K in the week ended 15 March 2024, compared to a revised level of 212.00K recorded in the prior week.
- In the US, the S&P Global manufacturing PMI unexpectedly rose to a level of 52.50 in March, compared to a level of 52.20 recorded in the previous month.
- In the US, the S&P Global services PMI fell to a level of 51.70 in March, more than market expectations for a fall to a level of 52.00. The services PMI had recorded a level of 52.30 in the prior month.
- In the US, the Philadelphia Fed manufacturing PMI eased to a level of 3.20 in March, compared to a level of 5.20 recorded in the prior month.
- In Japan, the Jibun Bank manufacturing PMI climbed to a level of 48.20 in March, compared to a level of 47.20 recorded in the previous month.
- In Japan, the CPI rose 2.8% on a YoY basis in February, compared to a rise of 2.2% recorded in the prior month.
- In Australia, the unemployment rate fell to 3.7% in February, more than market expectations and compared to a 4.1% recorded in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- Discovery Limited (JO:DSBPp): The financial services company, in its 1H24 results, revealed that insurance revenue rose to R26.12bn from R22.53bn posted in the corresponding period of the previous year. Its diluted EPS increased 2.0% from the same period of the prior year to 490.40c.
- Investec Plc (JO:INPJ): The wealth management company, in its trading update for the year ending 31 March 2024, stated that it expects basic EPS to be between 19.9% to 24.5%, higher as compared with 85.80p recorded in the previous year. Also, it expects HEPS to be between 4.8% to 10.6%, higher as compared with 66.80p recorded in the previous year. The company intends to release results for the year ending 31 March 2024 on 23 May 2024.
- Grand Parade Investments Limited (JO:GPLJ): The investment holding company, in its 1H24 results, announced that revenue climbed to R12.74mn from R0.53mn posted in the corresponding period of the previous year. Its diluted EPS rose 18.9% from the same period of the prior year to 11.81c.
- Sibanye names industry veteran to drive uranium strategies: Sibanye-Stillwater (JO:SSWJ) has appointed a head of uranium to develop and drive strategies to optimise the inherent value of the group’s substantial uranium resources.