SOUTH AFRICA MARKET REVIEW
- South African markets closed in the red yesterday, amid losses in mining sector stocks.
- Platinum miners, Impala platinum, Anglo American Platinum (JO:AMSJ) and Northam platinum (JO:NPHJ) dropped 5.8%, 3.7% and 2.3%, respectively.
- Gold miners, Harmony Gold Mining Co. (JO:HARJ) and Gold Fields (JO:GFIJ) declined 3.8% and 3.6%, respectively.
- Lenders, Nedbank Group (JO:NEDJ), Standard Bank Group (JO:SBKJ), Capitec Bank Holdings (JO:CPIJ) and FirstRand (JO:FSRJ) shed 3.7%, 1.6%, 1.4% and 1.1%, respectively.
- On the flipside, pharmaceutical companies, Adcock Ingram Holdings (JO:AIPJ) and Netcare (JO:NTCJ) jumped 9.0% and 1.0%, respectively.
- Telecommunications companies, Telkom SA SOC (JO:TKGJ) and Blue Label Telecoms (JO:BLUJ) advanced 2.9% and 2.0%, respectively.
- The JSE All Share index declined 0.5% to close at 83,620.81.
UK MARKET REVIEW
- The UK market finished firmer yesterday, on the back of upbeat domestic economic data and gains in retail sector stocks.
- Retailers, JD Sports Fashion (LON:JD) surged 10.7%, after the company reported a 2.4% rise in underlying sales in 2Q24 and successful expansion into North America and Europe.
- Peers, Tesco (LON:TSCO), Marks & Spencer Group (LON:MKS) and Burberry Group (LON:BRBY) advanced 2.0%, 1.3% and 1.2%, respectively.
- Travel and leisure companies, International Consolidated Airlines Group S.A. (LON:ICAG) and Whitbread (LON:WTB) rose 1.4% and 0.9%, respectively.
- On the other hand, miners, Glencore (LON:GLEN) and Fresnillo (LON:FRES) dropped 1.9% and 1.1%, respectively.
- The FTSE 100 index advanced 0.1% to close at 8,288.00.
US MARKET REVIEW
- US markets ended lower yesterday, led by losses in technology sector stocks and as investors braced for Fed Chair Jerome Powell's address for cues on Fed's policy changes.
- Semiconductor chips companies, Intel Corporation (NASDAQ:INTC), ON Semiconductor Corporation (NASDAQ:ON), Advanced Micro Devices (NASDAQ:AMD) and Micron Technology (NASDAQ:MU) dropped 6.1%, 4.3%, 3.9% and 3.8%, respectively.
- Technology companies, Microsoft Corporation (NASDAQ:MSFT), Salesforce (NYSE:CRM) and Apple (NASDAQ:AAPL) shed 2.0%, 1.0% and 0.8%, respectively.
- On the contrary, financial services companies, JPMorgan Chase (NYSE:JPM) and American Express (NYSE:AXP) added 1.0% and 0.6%, respectively.
- The S&P 500 index fell 0.9% to settle at 5,570.64, while the DJIA index declined 0.4% to close at 40,712.78.
- The NASDAQ index eased 1.7% to end the trading session at 17,619.35.
ASIA MARKET REVIEW
- Asian markets are trading lower this morning.
- In Japan, electronics company, Renesas Electronics (TYO:6723) has declined 2.6%.
- On the flipside, consumer electronics company, Sharp Corporation (TYO:6753) has advanced 6.0%.
- In Hong Kong, internet technology company, NetEase (HK:9999) (NASDAQ:NTES) has plunged 1.6%.
- On the other hand, insurance company, Ping An Insurance (HK:2318) has gained 2.0%.
- In South Korea, pharmaceutical company, Aprogen Pharmaceuticals (KS:003060) has shed 5.1%.
- On the contrary, biopharmaceutical company, HanAll Biopharma (KS:009420) has jumped 5.9%.
- The Nikkei 225 index is trading 0.2% lower at 38,117.44.
- The Hang Seng index has declined 0.5% to trade at 17,551.51, while the Kospi index is trading 0.1% lower at 2,706.32.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 0.1% to trade at $77.12/bl.
- Yesterday, Brent prices rose 1.5% to settle at $77.22/bl, amid rising expectations for rate cut by the US Fed in September.
- At 05:30 SAST today, gold prices advanced 0.2% to trade at $2,492.90/oz. Yesterday, gold declined 1.0% to close at $2,487.66/oz.
- Yesterday, copper declined 0.8% to close at $9,060.90/mt. Aluminium closed 0.2% lower at $2,470.35/mt.
CURRENCIES
- Yesterday, the South African rand weakened against the US dollar. In the US, the number of people filing for initial jobless claims rose in the week ended 16 August 2024. Moreover, existing home sales rebounded in July, ending a four-month decline and surpassing expectations. Further, the preliminary S&P Global services PMI unexpectedly rose in August. Meanwhile, the preliminary S&P Global manufacturing PMI unexpectedly declined in August. Also, the Chicago Fed national activity index dropped in July.
- The yield on benchmark government bonds rose yesterday. The yield on the 2030 bond advanced to 9.10%, while that for the longer-dated 2040 issue rose to 11.27%.
- At 05:30 SAST, the US dollar is trading 0.1% lower against the South African rand at R17.9886, while the euro is trading marginally lower at R20.0131. At 05:30 SAST, the British pound has marginally declined against the South African rand to trade at R23.5762.
- Yesterday, the euro mostly declined against most of the major currencies. In Germany, the HCOB manufacturing PMI unexpectedly declined in August. Moreover, the services PMI fell for a third consecutive month in August. In the eurozone, the HCOB manufacturing PMI unexpectedly fell in August. Moreover, the consumer confidence index deteriorated for the first time in 7 months in August. Meanwhile, the HCOB services PMI unexpectedly rose in August. In the UK, private sector activity rose in August, supported by a robust upturn in new order intakes.
- At 05:30 SAST, the euro advanced 0.1% against the US dollar to trade at $1.1127, while it has marginally gained against the British pound to trade at GBP0.8490.
ECONOMIC UPDATES
- In the UK, the S&P Global manufacturing PMI unexpectedly advanced to a level of 52.50 in August, compared to a level of 52.10 recorded in the prior month.
- In the UK, the S&P Global services PMI rose to a level of 53.30 in August, more than market expectations for a rise to a level of 52.80. The services PMI had recorded a level of 52.50 in the prior month.
- In the UK, the GfK consumer confidence index unexpectedly remained unchanged at a level of -13.00 in August.
- In France, the HCOB manufacturing PMI unexpectedly declined to a level of 42.10 in August, compared to a level of 44.00 recorded in the previous month.
- In France, the HCOB services PMI rose to a level of 55.00 in August, more than market expectations for a rise to a level of 50.30. The HCOB services PMI had recorded a level of 50.10 in the previous month.
- In Germany, the HCOB manufacturing PMI unexpectedly declined to a level of 42.10 in August, compared to a level of 43.20 recorded in the previous month.
- In Germany, the services PMI fell to a level of 51.40 in August, more than market expectations for a drop to a level of 52.30. The HCOB services PMI had recorded a level of 52.50 in the prior month.
- In the eurozone, the HCOB manufacturing PMI unexpectedly fell to a level of 45.60 in August, compared to a level of 45.80 recorded in the previous month.
- In the eurozone, the HCOB services PMI unexpectedly rose to a level of 53.3 in August, compared to a level of 51.90 recorded in the previous month.
- In the eurozone, the consumer confidence index unexpectedly declined to a level of -13.40 in August, compared to a level of -13.00 recorded in the prior month.
- In the US, the Chicago Fed national activity index dropped to a level of -0.34 in July, compared to a revised level of -0.09 recorded in the previous month.
- In the US, initial jobless claims rose to a level of 232.00K in the week ended 16 August 2024, more than market expectations for a rise to a level of 230.00K. Initial jobless claims had recorded a revised level of 228.00K in the previous week.
- In the US, the preliminary S&P Global manufacturing PMI unexpectedly declined to a level of 48.00 in August, compared to a level of 49.60 recorded in the prior month.
- In the US, the preliminary S&P Global services PMI unexpectedly rose to a level of 55.20 in August, compared to a level of 55.00 recorded in the previous month.
- In the US, existing home sales rose 1.3% on a MoM basis in July, compared to a revised drop of 5.1% recorded in the previous month.
- In Japan, the consumer price index (CPI) rose 2.8% on a YoY basis in July, compared to a similar rise recorded in the prior month.
CORPORATE UPDATES
SOUTH AFRICA
- Adcock Ingram Holdings Limited (JO:AIPJ): The pharmaceutical company, in its annual results reported revenue of R9.64bn higher as compared with R9.13bn posted in the previous year. Its diluted EPS decreased 4.0% from the prior year to 526.40c.
- Cashbuild Limited (JO:CSBJ): The retail company, in its FY24 trading update, revealed that it expects EPS to be between 10.0% and 20.0%, lower as compared with 456.90c recorded in the previous year. HEPS is expected to be 20.0% to 30.0%, lower as compared with 1,221.50c recorded in the previous year.
- Sibanye Stillwater Limited (JO:SSWJ): The gold mining company announced that it has secured a EUR500.00mn green loan financing facility for its Keliber lithium project in Finland, through its subsidiary Keliber Technology Oy. The proceeds of the Green loan will be used to complete the development of the Keliber Lithium project, with a total capital expenditure of around EUR656.00mn (2023 terms) or approximately EUR667.00mn (adjusted for inflation), partially funded by a previously raised equity financing component of around EUR250.00mn. The Green loan not only completes the full financing requirement for the Keliber lithium project, but also represents a significant injection of capital for Sibanye-Stillwater, improving group financial flexibility and liquidity and ensuring that available group cash and debt facilities are ring-fenced for operational and corporate requirements.