Market Review, Commodities, Currencies, Economic & Corporate Update - 24.04.24

  • Market Overview

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the green yesterday, boosted by gains in banking sector stocks.
  • Lender, Capitec Bank Holdings (JO: CPIJ ) jumped 7.8%, after the company reported a 16.0% rise in annual profit, helped by stronger customer base.
  • Peers, Standard Bank Group (JO: SBKJ ) and FirstRand (JO: FSRJ ) advanced 1.6% and 1.4%, respectively.
  • Retailers, Cashbuild (JO: CSBJ ), Cie Financiere Richemont S.A. (JO: CFRJ ) and SPAR Group (JO: SPPJ ) gained 5.9%, 1.4% and 1.1%, respectively.
  • Telecommunications companies, Blue Label Telecoms (JO: BLUJ ) and Vodacom Group (JO: VODJ ) added 2.0% and 0.6%, respectively.
  • On the flipside, chemicals and energy company, Sasol plunged 10.9%, after the company reported a 9.0% drop in production in 3Q24, due to reduced equipment availability and operational instability at its Secunda operations.
  • The JSE All Share index advanced 0.6% to close at 74,010.81.

UK MARKET REVIEW

  • The UK market finished firmer for a fifth consecutive session yesterday, amid ease in fears over an escalation in the Middle East tensions.
  • Consumer goods company, Associated British Foods (LON: ABF ) surged 9.0%, after the company reported a 1.8% rise in revenue in 1H24 and upgraded its full-year earnings outlook.
  • Retailer, JD Sports Fashion (LON: JD ) jumped 3.8%, after the company announced that it was buying retailer Hibbett for $1.08bn.
  • Peers, Ocado Group (LON: OCDO ), Marks & Spencer Group (LON: MKS ) and Next (LON: NXT ) advanced 5.4%, 2.5% and 1.5%, respectively.
  • Banking firms, NatWest Group (LON: NWG ), Barclays (LON: BARC ) and Standard Chartered (LON: STAN ) gained 2.2%, 1.6% and 1.4%, respectively.
  • On the other hand, miners, Antofagasta (LON: ANTO ), Fresnillo (LON: FRES ), Glencore (LON: GLEN ) (JO: GLNJ ) and Rio Tinto (LON: RIO ) declined 2.1%, 1.5%, 1.4% and 1.3%, respectively.
  • The FTSE 100 index advanced 0.3% to close at 8,044.81.

US MARKET REVIEW

  • US markets ended higher yesterday, following upbeat US corporate earnings results.
  • Automobile company, General Motors (NYSE: GM ) jumped 4.4%, after the company reported better than expected results in 1Q24 and raised its annual forecast, citing stable pricing and demand for gasoline-engine vehicles.
  • Media and entertainment companies, Netflix (NASDAQ: NFLX ), Paramount Global (NASDAQ: PARA ) and Walt Disney (NYSE: DIS ) advanced 4.2%, 2.4% and 1.5%, respectively.
  • Financial services companies, American Express (NYSE: AXP ), Goldman Sachs Group (NYSE: GS ) and JPMorgan Chase (NYSE: JPM ) gained 2.6%,1.6% and 1.4%, respectively.
  • Technology companies, Microsoft (NASDAQ: MSFT ), Salesforce (NYSE: CRM ) and Apple (NASDAQ: AAPL ) rose 1.7%, 1.1% and 0.6%, respectively.
  • The S&P 500 index rose 1.2% to settle at 5,070.55, while the DJIA index advanced 0.7% to close at 38,503.69.
  • The NASDAQ index climbed 1.6% to end the trading session at 15,696.64.

ASIA MARKET REVIEW

  • Asian markets are trading higher this morning, tracking overnight gains on Wall Street.
  • In Japan, consumer electronics company, Renesas electronics (TYO: 6723 ) has surged 9.8%.
  • On the flipside, pharmaceutical company, Sumitomo Pharma (TYO: 4506 ) has declined 1.5%.
  • In Hong Kong, e-commerce company, Alibaba Group (NYSE: BABA ) Holding has advanced 3.2%.
  • On the other hand, automobile company, Li Auto (NASDAQ: LI ) has eased 0.8%.
  • In South Korea, semiconductor company, Hanmi Semiconductor (KS: 042700 ) has jumped 8.8%.
  • On the contrary, pharmaceutical company, Aprogen Pharmaceuticals (KS: 003060 ) has shed 3.8%.
  • The Nikkei 225 index is trading 2.1% higher at 38,329.39.
  • The Hang Seng index has gained 1.6% to trade at 17,099.88, while the Kospi index is trading 1.9% higher at 2,673.31.

COMMODITIES

  • At 05:30 SAST today, Brent prices fell 0.1% to trade at $88.34/bl.
  • Yesterday, Brent prices rose 1.6% to settle at $88.42/bl, amid a surprise drop in crude inventories. The American Petroleum Institute (API) reported that the US crude oil inventories declined by 3.23mn bls in the week ended 19 April 2024.
  • At 05:30 SAST today, gold prices advanced 0.1% to trade at $2,325.24/oz. Yesterday, gold declined 0.5% to close at $2,321.81/oz, amid ease in concerns about an escalation of Middle East tensions and as investors await key economic data for further cues on US interest rate cuts.
  • Yesterday, copper declined 1.5% to close at $9,598.75/mt. Aluminium closed 3.4% lower at $2,579.00/mt.

CURRENCIES

  • Yesterday, the South African rand strengthened against the US dollar. In the US, the S&P Global manufacturing and services PMI unexpectedly fell in April. Meanwhile, the new home sales rose in March. Also, the Richmond Fed manufacturing index rose in April, in line with market expectations.
  • The yield on benchmark government bonds fell yesterday. The yield on the 2030 bond declined to 10.96%, while that for the longer-dated 2040 issue fell to 13.32%.
  • At 05:30 SAST, the US dollar is trading 0.1% lower against the South African rand at R19.101, while the euro is trading marginally lower at R20.4461. At 05:30 SAST, the British pound has slightly declined against the South African rand to trade at R23.7895.
  • Yesterday, the euro mostly advanced against most of the major currencies. In Germany, the services PMI expanded to a 10-months high in April, driven by a robust rise in services activity. In the eurozone, the preliminary HCOB services PMI advanced more than expected in April. Meanwhile, the the preliminary HCOB manufacturing PMI unexpectedly declined in April. In the UK, private sector economy grew at the quickest pace in nearly a year in April, amid a robust growth in service sector output.
  • At 05:30 SAST, the euro advanced 0.1% against the US dollar to trade at $1.0709, while it has slightly weakened against the British pound to trade at GBP0.8596.

ECONOMIC UPDATES

  • In the UK, the S&P Global manufacturing PMI unexpectedly dropped to a level of 48.70 in April, compared to a level of 50.30 recorded in the prior month.
  • In the UK, the S&P Global services PMI unexpectedly advanced to a level of 54.90 in April, compared to a level of 53.10 recorded in the prior month.
  • In France, the preliminary HCOB manufacturing PMI unexpectedly declined to a level of 44.90 in April, compared to a level of 46.20 recorded in the prior month.
  • In France, the preliminary HCOB services PMI rose to a level of 50.50 in April, more than market expectations for a rise to a level of 48.90. The HCOB services PMI had recorded a level of 48.30 in the prior month.
  • In Germany, the preliminary HCOB manufacturing PMI rose to a level of 42.20 in April, less than market expectations for a rise to a level of 42.80. The HCOB services PMI had recorded a level of 41.90 in the prior month.
  • In Germany, the preliminary HCOB services PMI climbed to a level of 53.30 in April, more than market expectations and compared to a level of 50.10 recorded in the prior month.
  • In the eurozone, the preliminary HCOB manufacturing PMI unexpectedly declined to a level of 45.60 in April, compared to a level of 46.10 recorded in the prior month.
  • In the eurozone, the preliminary HCOB services PMI advanced to a level of 52.90 in April, more than market expectations for a rise to a level of 51.80. The HCOB services PMI had recorded a level of 51.50 in the prior month.
  • In the US, the S&P Global manufacturing PMI unexpectedly dropped to a level of 49.90 in April, compared to a level of 51.90 recorded in the prior month.
  • In the US, the S&P Global services PMI fell to a level of 50.90 in April, compared to a level of 51.70 recorded in the prior month.
  • In the US, new home sales rose 8.8% on a MoM basis in March, compared to a revised drop of 5.1% recorded in the prior month.
  • In the US, the Richmond Fed manufacturing index advanced to a level of -7.00 in April, in line with market expectations. The Richmond Fed manufacturing index had recorded a level of -11.00 in the previous month.
  • In Australia, the consumer price index (CPI) rose 1.0% on a QoQ basis in 1Q24, more than market expectations for a rise of 0.8%. The CPI had recorded a rise of 0.6% in the previous quarter.

CORPORATE UPDATES

SOUTH AFRICA

  • Anglo American Plc (JO: AGLJ ): The mining company, in its 1Q24 production update, revealed that copper production increased by 11.0% reflecting higher throughput at Quellaveco, despite the impact of planned lower grades, as well as the benefit of higher grades and throughput at Collahuasi and El Soldado. Steelmaking coal production increased by 7.0% driven by the Aquila and Capcoal operations. Meanwhile, rough diamond production decreased by 23.0% and platinum group metals production decreased by 7.0% to 834.00koz. Nickel production declined to 9.50kt from 9.70kt recorded in the previous year.
  • Capitec Bank Holdings Limited (JO: CPIJ ): The banking company, in its FY23 results, indicated that group net interest income rose to R16.46bn from R14.21bn posted in the previous year. Its diluted EPS increased 15.5% from the prior year to 9,137.00c.
  • Anglo American Platinum Limited (JO: AMSJ ): The platinum mining company, in its 1Q24 production update, revealed that total platinum group metals (PGMs) production (expressed as 5E+Au metal-in-concentrate) decreased by 7.0% to 834,100 ounces. Own-managed mines PGMs production decreased by 6.0% to 504,300 ounces primarily at Amandelbult and Mototolo, while both Mogalakwena and Unki’s production were in line with prior period. Meanwhile, PGMs sales volumes (from production, excluding sales from trading) were broadly flat at 707,500 ounces.
  • Kumba Iron Ore (JO: KIOJ ) Limited: The mining company, in its production and sales update for the first quarter ended 31 March 2024, revealed that total production decreased by 2.0% to 9.27Mt, in line with its business reconfiguration to a lower production profile. Total sales decreased by 10.0% to 8.53Mt due to port performance challenges. Moreover, total waste stripping decreased by 14.0% to 43.79Mt, driven by a 48% decrease at Kolomela to 8.29Mt.
  • Sasol Limited (JO: SOLJ ): The chemical company, in its 3Q24 production update, revealed that mining and secunda collieries productivity was 4.0% and 3.0% higher respectively, as compared with the prior period, driven by the continued implementation of full potential programme. SO production volumes were 3.0% higher than the prior period mainly due to a phase shutdown in FY24 relative to a total shutdown in the prior year.
  • Oil prices rise slightly as tension in Middle East remains focus: Oil prices edged higher after falling in the previous session, as investors continued to assess the risk from geopolitical concerns in the Middle East.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100