SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green yesterday, boosted by gains in platinum mining stocks.
- Platinum miners, Anglo American Platinum (JO:AMSJ) soared 13.8%, after the company raised its annual production guidance for refined PGMs after the company reported a 22% jump in refined PGMs production in 3Q24.
- Peers, Northam Platinum (JO:NPHJ) and Impala Platinum (JO:IMPJ) surged 16.0% and 10.0%, respectively.
- Diversified miners, African Rainbow Minerals (JO:ARIJ), Anglo American (JO:AGLJ), Merafe Resources (JO:MRFJ) and Kumba Iron Ore (JO:KIOJ) advanced 3.7%, 2.5%, 2.1% and 1.3%, respectively.
- Property developers, Attacq (JO:ATTJ), Emira Property Fund (JO:EMIJ), Redefine Properties (JO:RDFJ) and Equites Property Fund (JO:EQUJ) gained 3.4%, 3.1%, 1.8% and 1.6%, respectively.
- The JSE All Share index advanced 0.5% to close at 86,937.24.
UK MARKET REVIEW
- The UK market finished firmer yesterday, following upbeat corporate earnings and domestic economic data that raised expectations for more rate cuts from the Bank of England (BoE).
- Banking company, Barclays (LON:BARC) advanced 4.2%, after the company reported a rise of 18.0% in 3Q24 profits, amid slower than expected interest rate cuts and upbeat investment banking prospects.
- Moreover, the company raised its net interest income forecast for 2024.
- Peers, Standard Chartered (LON:STAN), NatWest Group (LON:NWG) and Lloyds Banking Group (LON:LLOY) rose 2.0%, 1.5% and 0.9%, respectively.
- Consumer goods company, Unilever (LON:ULVR) gained 2.9%, after the company reported better than expected underlying sales in 3Q24.
- The FTSE 100 index advanced 0.1% to close at 8,269.38.
US MARKET REVIEW
- US markets ended mostly higher yesterday, boosted by Tesla's (NASDAQ:TSLA) positive earnings outlook and a drop in Treasury yields from a three-month high.
- Electric vehicle company, Tesla skyrocketed 21.9%, after the company reported higher profits in 3Q24 and projected a 20% to 30% sales growth next year.
- Shipping and logistics company, United Parcel Service (NYSE:UPS) advanced 5.3%, after the company reported a rise in 3Q24 profits, driven by rebounding volumes and cost-cutting measures.
- On the contrary, technology company, International Business Machines Corporation (NYSE:IBM) dropped 6.2%, after the company reported lower than expected revenue in 3Q24.
- The S&P 500 index rose 0.2% to settle at 5,809.86, while the DJIA index declined 0.3% to close at 42,374.36.
- The NASDAQ index climbed 0.8% to end the trading session at 18,415.49.
ASIA MARKET REVIEW
- Asian markets are trading mostly higher this morning, tracking overnight gains on Wall Street.
- In Japan, transportation company, Kawasaki Kisen Kaisha (TYO:9107) has dropped 3.3%.
- On the flipside, automobile company, Mazda Motor Corporation (TYO:7261) has added 0.8%.
- In Hong Kong, consumer electronics company, Xiaomi Corporation (HK:1810) has gained 3.0%.
- On the other hand, pharmaceutical company, Sinopharm Group (HK:1099) has eased 0.8%.
- In South Korea, electronics company, Daidong Electronics (KS:008110) has surged 16.1%.
- On the contrary, cosmetics company, Hankook Cosmetics (KS:003350) Manufacturing has shed 5.3%.
- The Nikkei 225 index is trading 1.0% lower at 37,771.79. The Hang Seng index has gained 1.0% to trade at 20,697.55, while the Kospi index is trading 0.3% higher at 2,588.77.
COMMODITIES
- At 05:30 SAST today, Brent prices rose 0.2% to trade at $74.51/bl.
- Yesterday, Brent prices fell 0.8% to settle at $74.38/bl, amid reports that the US and Israel are working to restart discussions for a potential ceasefire in Gaza.
- At 05:30 SAST today, gold prices declined 0.3% to trade at $2,726.53/oz. Yesterday, gold gained 0.7% to close at $2,735.70/oz, amid persistent geopolitical concerns.
- Yesterday, copper marginally rose to close at $9,367.25/mt. Aluminium closed 1.4% lower at $2,635.40/mt.
CURRENCIES
- Yesterday, the South African rand strengthened against the US dollar. In the US, the number of people filing for initial jobless claims declined in the week ended 18 October 2024. Moreover, the Chicago Fed national activity index dropped in September. Meanwhile, both, manufacturing and services PMI rose in October. Also, new home sales advanced in September.
- The yield on benchmark bonds were lower yesterday. The yield on the SA 10-year generic bond declined to 10.64%, while that for SA 20-year generic bond fell to 11.38%.
- At 05:30 SAST, the US dollar is trading marginally higher against the South African rand at R17.6725, while the euro is trading slightly higher at R19.1265. At 05:30 SAST, the British pound has gained 0.2% against the South African rand to trade at R22.9134.
- Yesterday, the euro mostly declined against most of the major currencies. In Germany, both, HCOB manufacturing and services PMI unexpectedly advanced in October. In the eurozone, the HCOB manufacturing PMI advanced more than expected in October. Meanwhile, the HCOB services PMI unexpectedly fell in October. In the UK, the GfK consumer confidence index declined in October, in line with market expectations. The S&P Global manufacturing PMI fell more than expected in October.
- At 05:30 SAST, the euro slightly slipped against the US dollar to trade at $1.0824, while it has marginally gained against the British pound to trade at GBP0.8348.
ECONOMIC UPDATES
- In the UK, the GfK consumer confidence index fell to a level of -21.00 in October, in line with market expectations. The GfK consumer confidence index had recorded a level of -20.00 in the prior month.
- In the UK, the S&P Global manufacturing PMI dropped more than expected to a level of 50.30 in October. The manufacturing PMI had recorded a level of 51.50 in the prior month.
- In the UK, the S&P Global services PMI declined to a level of 51.80 in October, more than market expectations and compared to a level of 52.40 in the prior month.
- In France, the HCOB manufacturing PMI fell to a level of 44.50 in October, less than market expectations for a drop to a level of 44.40. The HCOB manufacturing PMI had recorded a level of 44.60 in the previous month.
- In France, the HCOB services PMI unexpectedly dropped to a level of 48.30 in October, compared to a level of 49.60 in the previous month.
- In Germany, the HCOB manufacturing PMI unexpectedly rose to a level of 42.60 in October, compared to a level of 40.60 recorded in the previous month.
- In Germany, the HCOB services PMI unexpectedly climbed to a level of 51.40 in October, compared to a level of 50.60 recorded in the previous month.
- In the eurozone, the HCOB manufacturing PMI rose to a level of 45.90 in October, more than market expectations for a rise to a level of 45.10. The manufacturing PMI had recorded a level of 45.00 recorded in the prior month.
- In the eurozone, the HCOB services PMI unexpectedly fell to a level of 51.20 in October, compared to a level of 51.40 recorded in the prior month.
- In the US, initial jobless claims fell to a level of 227.00K in the week ended 18 October 2024, compared to a revised level of 242.00K recorded in the previous week.
- In the US, the Chicago Fed national activity index eased to a level of -0.28 in September, compared to a revised level of -0.01 recorded in the prior month.
- In the US, the S&P Global manufacturing PMI rose to a level of 47.80 in October, more than market expectations for a rise to a level of 47.50. The S&P Global manufacturing PMI had recorded a level of 47.30 in the prior month.
- In the US, the S&P Global services PMI unexpectedly rose to a level of 55.30 in October, compared to a level of 55.20 recorded in the previous month.
- In the US, new home sales rose 4.1% on a MoM basis in September, compared to a revised drop of 2.3% recorded in the prior month.
- In the US, the Kansas Fed manufacturing activity index recorded a flat reading in October, compared to a level of -18.00 recorded in the previous month.
- In Japan, the Tokyo consumer price index (CPI) rose 1.8% on a YoY basis in October, compared to a revised rise of 2.1% recorded in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- Anglo American Platinum Limited (JO:AMSJ): The platinum mining company, in its 3Q24 production update, revealed that own managed mines platinum group metals (PGMs) production (expressed as 5E+Au metal-in-concentrate) decreased by 9.0% to 552,000 ounces. Refined PGMs production (owned production, excluding tolling) increased by 22% to 1,106,900 ounces primarily driven by the continued release of work-in-progress inventory. Moreover, PGMs sales volumes (from production, excluding sales from trading) rose by 16.0% to 1,102,200 ounces, supported by higher refined production.
- Kumba Iron Ore Limited (JO:KIOJ): The mining company, in its 3Q24 production and sales update, revealed that iron ore production fell to 9,446,000 tonnes from 9,736,000 tonnes recorded in the previous month. Moreover, iron ore sales rose to 9,027,000 tonnes from 8,873,000 tonnes recorded in the prior year, reflecting improved port equipment performance. Meanwhile, ore railed to port dropped by 8.0% to 9.1 Mt, due to the cumulative impact of derailments, rail breakages and speed restrictions.
- Clicks Group Limited (JO:CLSJ): The retail company, in its FY24 results, reported that its revenues rose to R48.61bn from R44.56bn posted in the preceding year. Its diluted EPS climbed 14.2% to 1,190.30c from the previous year.
- Datatec Limited (JO:DTCJ): The ICT solutions company, in its 1H25 results, reported that its revenues declined 5.5% to $2.61bn from the same period of the preceding year. Its diluted EPS stood at 11.00 US cents, compared to 6.10 US cents recorded in the corresponding period of the previous year.
- Cashbuild Limited (JO:CSBJ): The retail company, in its 1Q25 operational update, revealed that revenues increased by 5.0% as compared to the previous year. Additionally, the company closed 1 underperforming store, refurbished 3 stores and relocated 1 store bringing the total number of stores trading at the end of the quarter to 321.