Market Review, Commodities, Currencies, Economic & Corporate Update - 22.04.24

  • Market Overview

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the green on Friday, buoyed by gains in packaging and food companies.
  • Paper and packaging companies Mondi (JO: MNPJ ) (LON: MNDI ) and Sappi (JO: SAPJ ) jumped 9.2% and 1.4%, respectively.
  • Food companies, Famous Brands (JO: FBRJ ), RCL Foods (JO: RCLJ ) and Tiger Brands (JO: TBSJ ) advanced 2.4%, 1.9% and 1.3%, respectively.
  • On the flipside, pharmaceutical companies, Life Healthcare Group (JO: LHCJ ) and Aspen Pharmacare (JO: APNJ ) dropped 1.8% and 1.0%, respectively.
  • Retailers, Foschini Group (JO: TFGJ ), Mr Price Group (JO: MRPJ ), Shoprite Holdings (JO: SHPJ ) and SPAR Group (JO: SPPJ ) declined 1.6%, 1.3%, 0.8% and 0.7%, respectively.
  • Property developers, NEPI Rockcastle NV (JO: NRPJ ), Equites Property Fund (JO: EQUJ ) and Growthpoint Properties (JO: GRTJ ) shed 1.6%, 1.3% and 0.8%, respectively.
  • The JSE All Share index advanced 0.1% to close at 73,363.56.

UK MARKET REVIEW

  • The UK market finished firmer on Friday, as dovish comments from Bank of England (BoE) Deputy Governor Dave Ramsden raised hopes for rate cuts.
  • Water utilities companies, United Utilities Group (LON: UU ) and Severn Trent (LON: SVT ) both advanced 1.5%, each.
  • Tobacco companies, Imperial Brands (LON: IMB ) and British American Tobacco (JO: SNHJ ) gained 1.5% and 0.7%, respectively.
  • Banking firms, Barclays (LON: BARC ) and Standard Chartered (LON: STAN ) added 1.0% and 0.8%, respectively.
  • On the other hand, retailers, JD Sports Fashion (LON: JD ), B&M European Value Retail SA (LON: BMEB ) and Ocado Group (LON: OCDO ) dropped 2.8%, 1.9% and 0.8%, respectively.
  • Real estate companies, Berkeley Group Holdings (LON: BKGH ) and Barratt Developments (LON: BDEV ) declined 1.7% and 1.1%, respectively.
  • The FTSE 100 index advanced 0.2% to close at 7,895.85.

US MARKET REVIEW

  • US markets ended mostly lower on Friday, led by losses in technology sector stocks.
  • Semiconductor chips companies, NVIDIA Corporation (NASDAQ: NVDA ), Advanced Micro Devices (NASDAQ: AMD ) and Micron Technology (NASDAQ: MU ) dropped 10.0%, 5.4% and 4.6%, respectively.
  • Technology companies, Intel Corporation (NASDAQ: INTC ), Microsoft Corporation (NASDAQ: MSFT ) and Apple (NASDAQ: AAPL ) declined 2.4%, 1.3% and 1.2%, respectively.
  • On the contrary, financial services companies, American Express (NYSE: AXP ), Bank of America Corporation (NYSE: BAC ) and JPMorgan Chase (NYSE: JPM ) advanced 6.2%, 3.5% and 2.5%.
  • Energy companies, Chevron Corporation (NYSE: CVX ), Exxon Mobil Corporation (NYSE: XOM ) and Devon Energy Corporation (NYSE: DVN ) gained 1.5%, 1.2% and 0.8%, respectively.
  • The S&P 500 index fell 0.9% to settle at 4,967.23, while the DJIA index climbed 0.6% to end the trading session at 37,986.40.
  • The NASDAQ index declined 2.0% to close at 15,282.01.

ASIA MARKET REVIEW

  • Asian markets are trading higher this morning.
  • In Japan, pharmaceutical company, Sumitomo Pharma (TYO: 4506 ) has advanced 4.6%. On the flipside automobile company, Nissan Motor (TYO: 7201 ) has declined 2.6%.
  • In Hong Kong, pharmaceutical company, Sino Biopharmaceutical (HK: 1177 ) has jumped 6.0%.
  • On the other hand, automobile company, Li Auto (NASDAQ: LI ) has shed 4.2%.
  • In South Korea, financial services company, KB Financial Group (KS: 105560 ) has surged 8.6%.
  • On the contrary, shipping company, Heung-A-Shipping (KS: 003280 ) has plunged 7.1%.
  • The Nikkei 225 index is trading 0.7% higher at 37,334.97.
  • The Hang Seng index has advanced 1.8% to trade at 16,510.22, while the Kospi index is trading 0.8% higher at 2,613.74.

COMMODITIES

  • At 05:30 SAST today, Brent prices fell 0.9% to trade at $86.53/bl.
  • On Friday, Brent prices rose 0.2% to settle at $87.29/bl, on persistent Middle East tensions. Meanwhile, the Baker Hughes reported that oil rigs count rose by 5 to 511 in the week ended 19 April 2024.
  • At 05:30 SAST today, gold prices declined 1.1% to trade at $2,364.88/oz. On Friday, gold gained 0.5% to close at $2,390.45/oz.
  • On Friday, copper rose 1.5% to close at $9,797.07/mt. Aluminium closed 1.8% higher at $2,661.09/mt.

CURRENCIES

  • On Friday, the South African rand strengthened against the US dollar.
  • The yield on benchmark government bonds were mixed on Friday. The yield on the 2030 bond declined to 10.78%, while that for the longer-dated 2040 issue rose to 13.80%.
  • At 05:30 SAST, the US dollar is trading 0.2% lower against the South African rand at R19.0862, while the euro is trading 0.1% lower at R20.3514. At 05:30 SAST, the British pound has marginally declined against the South African rand to trade at R23.6298.
  • On Friday, the euro mostly advanced against most of the major currencies. In Germany, the producer price index (PPI) declined in March, largely due to weaker energy prices.
  • At 05:30 SAST, the euro advanced 0.1% against the US dollar to trade at $1.0664, while it has marginally weakened against the British pound to trade at GBP0.8614.

ECONOMIC UPDATES

  • In the UK, retail sales unexpectedly recorded a flat on a MoM basis in March, compared to a revised rise of 0.1% recorded in the previous month.
  • In the UK, the Rightmove house price index climbed 1.1% on a MoM basis in April, compared to a rise of 1.5% recorded in the prior month.
  • In Germany, the producer price index (PPI) unexpectedly advanced 0.2% on a MoM basis in March, compared to a drop of 0.4% recorded in the prior month.
  • The People’s Bank of China (PBoC) kept its key interest rate unchanged at 3.45%, in line with market expectations.

CORPORATE UPDATES

SOUTH AFRICA

  • CareerBox takes BPO to the next level: The recruitment and training company screens and processes up to 200 applications for call centre jobs. Some of those are from graduates — not surprising when you consider that the official national unemployment rate stood at 32.1% in the fourth quarter last year, up from 31.9% in the previous three month-period.

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