Market Review, Commodities, Currencies, Economic & Corporate Update - 24.10.23

  • Market Overview

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the red yesterday, amid ongoing Israel-Hamas conflict.
  • Platinum miners, Impala Platinum Holdings (JO: IMPJ ), Anglo American Platinum (JO: AGLJ ) and Northam Platinum (JO: NHMJ ) declined 5.8%, 3.9% and 2.4%, respectively.
  • Gold mining companies, AngloGold Ashanti (JO: ANGJ ), Sibanye Stillwater (JO: SSWJ ), Gold Fields (JO: GFIJ ) and Harmony Gold Mining Company (JO: HARJ ) shed 4.8%, 4.4%, 4.2% and 4.0%, respectively.
  • On the flipside, Real estate companies, Emira Property Fund (JO: EMIJ ), Attacq (JO: ATTJ ) and Hyprop Investments (JO: HYPJ ) gained 5.0%, 1.9% and 0.8%, respectively.
  • Telecommunications companies, Blue Label Telecoms (JO: BLUJ ) and Telkom SA SOC (JO: TKGJ ) added 3.45 and 0.8%, respectively.
  • Banks, RMB Holdings (JO: RMHJ ), FirstRand (JO: FSRJ ), Absa Group (JO: ABGJ ) and Capitec Bank Holdings (JO: CPIJ ) advanced 2.1%, 1.5%, 1.3% and 1.2%, respectively.
  • The JSE All Share index eased 0.1% to close at 70,100.31.

UK MARKET REVIEW

  • The UK market finished weaker yesterday, led by losses in mining and energy sector stocks.
  • Miners, Fresnillo (LON: FRES ), Antofagasta (LON: ANTO ), Glencore (JO: GLNJ ) and Anglo American (LON: AAL ) shed 4.7%, 2.0%, 1.5% and 1.4%, respectively.
  • Energy company, BP (LON: BP ) declined 2.4%, tracking weaker oil prices.
  • On the contrary, travel and leisure companies, International Consolidated Airlines Group S.A (LON: ICAG ) and Whitbread (LON: WTB ) advanced 2.8% and 1.4%, respectively.
  • Retail companies, Next (LON: NXT ) and Kingfisher (LON: KGF ) added 1.8% and 1.4%, respectively.
  • Property developers, Barratt Developments (LON: BDEV ) and Berkeley Group Holdings (LON: BKGH ) gained 1.5% and 0.8%, respectively.
  • The FTSE 100 index declined 0.4% to close at 7,374.83.

US MARKET REVIEW

  • US markets ended mostly lower yesterday, as investors await major corporate earnings from tech giants.
  • Chevron Corporation (NYSE: CVX ) shed 3.7%, after the company reached a deal to buy Hess Corporation (NYSE: HES ) in an all-stock agreement valued at $53.00bn.
  • Technology companies, Intel (NASDAQ: INTC ) and Salesforce (NYSE: CRM ) eased 3.1% and 0.9%, respectively.
  • Insurance companies, Travelers Companies (NYSE: TRV ) and UnitedHealth Group (NYSE: UNH ) shed 1.5% and 1.0%, respectively.
  • On the other hand, Meta Platforms (NASDAQ: META ) and Microsoft Corporation (NASDAQ: MSFT ) added 1.7% and 0.8%, respectively.
  • The S&P 500 index fell 0.2% to settle at 4,217.04, while the DJIA index declined 0.6% to close at 32,936.41.
  • The NASDAQ index added 0.3% to end the trading session at 13,018.33.

ASIA MARKET REVIEW

  • Asian markets are trading lower this morning.
  • In Japan, airline company, Japan Airlines Company (TYO: 9201 ) has added 1.5%.
  • On the flipside, pharmaceutical company, Chugai Pharmaceutical Company (TYO: 4519 ) has shed 3.3%.
  • In Hong Kong, e-commerce company, JD.com (NASDAQ: JD ) has declined 2.5%.
  • On the other hand, pharmaceutical company, CSPC Pharmaceutical Group (HK: 1093 ) has advanced 2.2%.
  • In South Korea, engineering company, SC Engineering (KS: 023960 ) has added 3.0%.
  • On the contrary, shipping company, Heung-A Shipping (KS: 003280 ) has edged down 6.7%.
  • The Nikkei 225 index is trading 0.6% lower at 30,828.59.
  • The Hang Seng index has declined 0.9% to trade at 17,024.80, while the Kospi index is trading 0.2% lower at 2,352.61.

COMMODITIES

  • At 05:30 SAST today, Brent prices rose 0.6% to trade at $90.36/bl, reversing previous session losses.
  • Yesterday, Brent prices fell 2.5% to settle at $89.83/bl, as diplomatic efforts in the Middle East eased supply concerns.
  • At 05:30 SAST today, gold prices advanced 0.3% to trade at $1,977.57/oz. Yesterday, gold declined 0.4% to close at $1,972.59/oz.
  • Yesterday, copper rose 0.3% to close at $7,900.61/mt. Aluminium closed 0.1% lower at $2,180.00/mt.

CURRENCIES

  • Yesterday, the South African rand strengthened against the US dollar. In the US, the Chicago Fed National Activity Index improved in September.
  • The yield on benchmark government bonds rose yesterday. The yield on the 2030 bond advanced to 10.83% while that for the longer-dated 2040 issue rose to 12.97%.
  • At 05:30 SAST, the US dollar is trading 0.4% lower against the South African rand at R18.8937, while the euro is trading 0.1% lower at R20.204. At 05:30 SAST, the British pound has declined 0.1% against the South African rand to trade at R23.196.
  • Yesterday, the euro advanced against most of the major currencies. In the eurozone, consumer confidence weakened for a third straight month in October.
  • At 05:30 SAST, the euro advanced 0.1% against the US dollar to trade at $1.0685, while it has marginally weakened against the British pound to trade at GBP0.8710.

ECONOMIC UPDATES

  • In the eurozone, the consumer confidence index registered a drop to a level of -17.90 in October, less than market expectations and compared to a reading of -17.80 recorded in the prior month.
  • In the US, the Chicago Fed National Activity Index recorded a rise to a level of 0.02 in September. In the previous month, the Chicago Fed National Activity Index had registered a revised level of -0.22.
  • In Japan, the Nikkei services PMI fell to a level of 51.10 in October. In the previous month, the services PMI had registered a level of 53.80.
  • In Japan, the flash manufacturing PMI remained unchanged at 48.50 in October, compared to market expectations for a rise to a level of 48.90.
  • In Australia, the preliminary Markit manufacturing PMI eased to a level of 48.00 in October, compared to a level of 48.70 in the previous month.
  • In Australia, the preliminary Markit services PMI dropped to a level of 47.60 in October, compared to a level of 51.80 in the previous month.

CORPORATE UPDATES

SOUTH AFRICA

  • Datatec Limited (JO: DTCJ ): The technology company, in its 1H24 results, indicated that revenues rose to $2.76bn from $2.41bn posted in the corresponding period of the previous year. Its diluted EPS from continuing operations stood at 6.10 US cents, compared with 2.60 US cents recorded in the corresponding period of the previous year.
  • Sasol Limited (JO: SOLJ ): The energy company, in its production and sales update for the three months ended 30 September 2023, stated that mining productivity increased 9.0% from the previous year to 1,025 t/cm/s. Also, mining saleable production advanced 3.0% to 7.80mm tons. Moreover, natural gas (Mozambique) production increased to 30.30 bscf from 27.20 bscf recorded in the previous year.

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