South Africa Market Review
- South African markets closed in the green yesterday, led by gains in precious metals and property sector stocks.
- Gold miners, AngloGold Ashanti (JO:ANGJ) and Gold Fields (JO:GFIJ) advanced 3.4% and 3.0%, respectively.
- Property developers, Growthpoint Properties (JO:GRTJ), Emira Property Fund (JO:EMIJ) and Hammerson (LON:HMSO) gained 2.0%, 1.8% and 1.0%, respectively.
- Retailers, Pick ‘n Pay Stores (JO:PIKJ), Mr Price Group (JO:MRPJ) and Lewis Group (JO:LEWJ) rose 2.0%, 1.4% and 1.3%, respectively.
- Pharmaceutical companies, Netcare (JO:NTCJ) and Life Healthcare Group (JO:LHCJ) added 1.0% and 0.5%, respectively.
- On the flipside, diversified miners, Exxaro Resources (JO:EXXJ), Kumba Iron Ore (JO:KIOJ) and Merafe Resources (JO:MRFJ) dropped 2.4%, 1.8% and 0.7%, respectively.
- The JSE All Share index advanced 0.4% to close at 74,301.56.
UK Market Review
- The UK market finished firmer yesterday, buoyed by gains in retail sector stocks and ahead of the Jackson Hole symposium.
- Retailers, JD Sports Fashion (LON:JD), Ocado Group (LON:OCDO), B&M European Value Retail S.A. (LON:BMEB) and Tesco (LON:TSCO) advanced 5.1%, 1.8%, 1.2% and 0.8%, respectively.
- Banking firms, Barclays (LON:BARC) and HSBC Holdings (LON:HSBA) rose 1.1% and 0.7%, respectively.
- Water utilities companies, Severn Trent (LON:SVT) and United Utilities Group (LON:UU) added 1.1% and 0.7%, respectively.
- On the other hand, insurance companies, Aviva (LON:AV) and Legal & General Group (LON:LGEN) each dropped 2.6%.
- Travel & Leisure companies, Whitbread (LON:WTB), InterContinental Hotels Group (LON:IHG) and International Consolidated Airlines Group S.A. (LON:ICAG) declined 1.7%, 1.2% and 0.9%, respectively.
- Miners, Antofagasta (LON:ANTO) and Glencore (LON:GLEN) shed 1.3% and 1.1%, respectively.
- The FTSE 100 index advanced 0.2% to close at 7,333.63.
US Market Review
- US markets ended lower yesterday, as investors await US Federal Reserve (Fed) Chair Jerome Powell’s speech at Jackson Hole Economic Symposium.
- Retail chain company, Dollar Tree (NASDAQ:DLTR) edged down 12.9%, after the company projected weaker than expected annual profit amid higher costs and a shift in spending towards lower-margin consumables.
- Media and entertainment companies, Netflix (NASDAQ:NFLX) and Walt Disney (NYSE:DIS) dropped 4.8% and 3.9%, respectively.
- Technology companies, Intel (NASDAQ:INTC), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Salesforce (NYSE:CRM) declined 4.1%, 2.6%, 2.2% and 1.7%, respectively.
- Financial services companies, Visa (NYSE:V), American Express (NYSE:AXP) and Goldman Sachs Group (NYSE:GS) shed 1.2%, 1.0% and 0.7%, respectively.
- The S&P 500 index fell 1.3% to settle at 4,376.31, while the DJIA index declined 1.1% to close at 34,099.42.
- The NASDAQ index eased 1.9% to end the trading session at 13,463.97.
Asia Market Review
- Asian markets are trading lower this morning. In Japan, banking company, SoftBank Group Corporation (TYO:9984) has shed 3.8%.
- On the flipside, transportation company, Kawasaki Kisen Kaisha (TYO:9107) has added 0.9%.
- In Hong Kong, insurance company, AIA Group (HK:1299) has declined 2.5%.
- On the other hand, automobile company, Geely Automobile Holdings (HK:0175) had advanced 1.9%.
- In South Korea, chemical company, Sam Young Chemical (KS:003720) has shed 9.5%.
- On the contrary, electric products company, Kumho Electric (KS:001210) has surged 15.4%.
- The Nikkei 225 index is trading 1.9% lower at 31,666.36.
- The Hang Seng index has declined 0.9% to trade at 18,052.15, while the Kospi index is trading 0.8% lower at 2,516.50.
Commodities
- At 05:30 SAST today, Brent prices rose 0.2% to trade at $83.53/bl.
- Yesterday, Brent prices rose 0.2% to settle at $83.36/bl.
- At 05:30 SAST today, gold prices declined 0.1% to trade at $1,914.17/oz. Yesterday, gold gained 0.1% to close at $1,916.60/oz.
- Yesterday, copper declined 0.8% to close at $8,358.50/mt. Aluminium closed 0.9% lower at $2,157.35/mt.
Currencies
- Yesterday, the South African rand weakened against the US dollar. In the US, the number of people filing for initial jobless claims unexpectedly declined in the week ended 18 August 2023. Moreover, the Chicago Fed National Activity index improved in July. Meanwhile, durable goods orders dropped in July.
- The yield on benchmark government bonds fell yesterday. The yield on 2030 bond fell to 10.20%. Further, the yield on the longer-dated 2040 issue fell to 12.31%.
- At 05:30 SAST, the US dollar is trading 0.1% lower against the South African rand at R18.8003, while the euro is trading 0.1% lower at R20.3186. At 05:30 SAST, the British pound has declined 0.1% against the South African rand to trade at R23.6867.
- Yesterday, the euro mostly advanced against most of the major currencies. In the UK, the GfK consumer confidence index rose more than expected in August, amid ease in energy prices and accelerating wage growth.
- At 05:30 SAST, the euro marginally slipped against the US dollar to trade at $1.081, while it has marginally weakened against the British pound to trade at GBP0.858.
Economic Updates
- In the UK, the GfK consumer confidence rose to a level of -25.00 in August, more than market expectation and compared to a level of -30.00 recorded in the previous month.
- In the US, the Chicago Fed National Activity Index advanced to a level of 0.12 in July, compared to a revised level of -0.33 recorded in the previous month.
- In the US, durable goods orders fell 5.2% in July, compared to a revised rise of 4.4% in the previous month.
- In the US, initial jobless claims dropped to a level of 230.00K in the week ended 18 August 2023, compared to a revised level of 240.00K recorded in the previous week.
- In the US, the Kansas Fed manufacturing activity rose to a level of 12.00 in August, compared to a level of -20.00 recorded in the previous month.
- In Japan, the Tokyo consumer price index (CPI) rose 2.9% on a YoY basis in August, less than market expectations for a rise of 3.0%. The CPI had advanced 3.2% in the previous month.
Corporate Updates
South Africa
- African Rainbow Minerals Limited (JO:ARIJ): The mining company, in its FY23 trading update, stated that it expects basic EPS to be between 3,679.00c to 4,250.00c as compared with 6,343.00c recorded in the previous year. Also, it expects HEPS to be between 4,225.00c and 4,745.00c as compared with 5,787.00c recorded in the previous year. Further, the company intends to release its annual results on 4 September 2023
- Blue Label Telecoms Limited (JO:BLUJ): The telecommunications company, in its trading update for the year ended 31 May 2023, announced that it expects EPS to be 72.0% to 76.0%, lower as compared with 117.13c recorded in the previous year. Also, it expects HEPS to be 62.0% to 66.0%, lower as compared with 117.34c recorded in the previous year.
- Oil steady as traders wait for rate clues in Powell’s speech: Oil prices steadied after earlier declines caused by disappointing economic data from key economies, with investors awaiting a speech by US Federal Reserve chair Jerome Powell for clues on interest rate moves.