Market Review, Commodities, Currencies, Economic & Corporate Update - 26.04.24

  • Market Overview

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the red yesterday, as investors assessed weak US economic data.
  • Platinum miners, Anglo American Platinum (JO: AMSJ ), Northam Platinum (JO: NPHJ ) and Impala Platinum (JO: IMPJ ) plunged 9.5%, 5.5% and 2.8%, respectively.
  • Retailers, SPAR Group (JO: SPPJ ), Cie Financiere Richemont S.A. (JO: CFRJ ), Foschini Group (JO: TFGJ ) and Lewis Group (JO: LEWJ ) dropped 2.9%, 2.4%, 2.2% and 1.6%, respectively.
  • Food companies, RCL Foods (JO: RCLJ ), Famous Brands (JO: FBRJ ) and Tiger Group (JO: TBSJ ) shed 1.9%, 1.1% and 0.9%, respectively.
  • On the flipside, diversified miners, Anglo American (JO: AGLJ ), African Rainbow Minerals (JO: ARIJ ) and Pan African Resources (JO: PANJ ) surged 18.9%, 2.4% and 1.8%, respectively.
  • Property developers, Redefine Properties (JO: RDFJ ), Emira Property Fund (JO: EMIJ ), Growthpoint Properties (JO: GRTJ ) and Burstone Group (JO: BTNJ ) advanced 2.7%, 2.0%, 1.1% and 0.9%, respectively.
  • The JSE All Share index declined 0.2% to close at 74,329.38.

UK MARKET REVIEW

  • The UK market finished firmer yesterday, buoyed by robust domestic corporate earnings results.
  • Miner, Anglo American surged 16.1%, after BHP Group (JO: BHPJ ) made a buyout offer, valuing its share capital at $38.80bn.
  • Banking firm, Barclays (LON: BARC ) jumped 6.7%, after the company reported better than expected results in 1Q24.
  • Pharmaceutical company, AstraZeneca (LON: AZN ) advanced 5.9%, after the company reported an 18% rise in 1Q24 revenues, driven by robust sales of its cancer drugs.
  • Consumer good company, Unilever (LON: ULVR ) gained 5.7%, after the company reported higher sales growth in 1Q24.
  • On the other hand, insurance companies, Legal & General Group (LON: LGEN ), Prudential (LON: PRU ) and Admiral Group (LON: ADML ) shed 6.4%, 2.9% and 2.6%, respectively.
  • The FTSE 100 index advanced 0.5% to close at 8,078.86.

US MARKET REVIEW

  • US markets ended lower yesterday, as dismal US economic growth and persistent inflation dampened hopes that the US Federal Reserve (Fed) would begin rate cuts this year.
  • Technology company, International Business Machines (NYSE: IBM ) plummeted 8.3%, after the company reported lower than expected revenue in 1Q24 and announced a $6.40bn deal to buy HashiCorp.
  • Construction company, Caterpillar (NYSE: CAT ) plunged 7.0%, after the company slashed its 2Q24 sales forecast as demand for its construction equipment eased.
  • Airlines company, Southwest Airlines (NYSE: LUV ) dropped 7.0%, after the company cut its projections for new aircraft deliveries from Boeing (NYSE: BA ) in 2024 for the third time.
  • The S&P 500 index fell 0.5% to settle at 5,048.42, while the DJIA index declined 1.0% to close at 38,085.80.
  • The NASDAQ index eased 0.6% to end the trading session at 15,611.76.

ASIA MARKET REVIEW

  • Asian markets are trading higher this morning.
  • In Japan, printers and cameras company, Canon (TYO: 7751 ) has advanced 3.3%.
  • On the flipside, chemical company, Shin-Etsu Chemical (TYO: 4063 ) has dropped 5.9%.
  • In Hong Kong, consumer electronics company, Xiaomi Corporation (HK: 1810 ) has gained 3.5%.
  • On the other hand, pharmaceutical company, Sinopharm Group (HK: 1099 ) has eased 0.9%.
  • In South Korea, electric power equipment company, LS Electric (KS: 010120 ) has surged 9.6%.
  • On the contrary, chemical products company, Foosung (KS: 093370 ) has shed 3.7%.
  • The Nikkei 225 index is trading 0.4% higher at 37,780.35.
  • The Hang Seng index has advanced 1.9% to trade at 17,617.90, while the Kospi index is trading 1.1% higher at 2,656.85.

COMMODITIES

  • At 05:30 SAST today, Brent prices rose 0.3% to trade at $89.32/bl.
  • Yesterday, Brent prices rose 1.1% to settle at $89.01/bl, amid supply concerns in the Middle East as Israel stepped up airstrikes on Gaza's Rafah.
  • At 05:30 SAST today, gold prices advanced 0.1% to trade at $2,333.11/oz. Yesterday, gold gained 0.7% to close at $2,331.78/oz, as a weaker dollar boosted demand for the safe haven yellow metal.
  • Yesterday, copper rose 1.4% to close at $9,790.65/mt. Aluminium closed 1.2% lower at $2,569.10/mt.

CURRENCIES

  • Yesterday, the South African rand strengthened against the US dollar. In South Africa, the producer price index (PPI) rose in March. Separately, in the US, gross domestic product (GDP) advanced less than expected in 1Q24. Moreover, pending home sales advanced more than expected in March. Meanwhile, the number of initial jobless claims unexpectedly declined to a 2-month low in the week ended 19 April 2024.
  • The yield on benchmark government bonds rose yesterday. The yield on the 2030 bond advanced to 11.19%, while that for the longer-dated 2040 issue rose to 13.43%.
  • At 05:30 SAST, the US dollar is trading slightly lower against the South African rand at R19.0338, while the euro is trading 0.1% lower at R20.411. At 05:30 SAST, the British pound has declined 0.1% against the South African rand to trade at R23.8001.
  • Yesterday, the euro mostly declined against most of the major currencies. In the UK, the GfK consumer confidence index rose more than expected in April.
  • At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.0724, while it has marginally gained against the British pound to trade at GBP0.8577.

ECONOMIC UPDATES

  • In South Africa, the producer price index (PPI) rose 1.1% on a MoM basis in March, compared to a rise of 0.5% recorded in the previous month.
  • In the UK, the GfK consumer confidence index rose to a level of -19.00 in April, more than market expectations for a rise to a level of -20.00. The GfK consumer confidence index had recorded a level of -21.00 in the prior month.
  • In Germany, the GfK consumer confidence advanced to a level of -24.20 in May, more than market expectations for a rise to a level of -25.90. The GfK consumer confidence had recorded a revised level of -27.30 in the prior month.
  • In the US, goods trade deficit unexpectedly widened to $91.80bn in March, compared to a deficit of $91.40bn recorded in the previous month.
  • In the US, initial jobless claims unexpectedly fell to a level of 207.00K in the week ended 19 April 2024, compared to a level of 212.00K recorded in the previous week.
  • In the US, annualized gross domestic product (GDP) rose 1.6% in 1Q24, less than market expectations for a rise of 2.5%. Annualized GDP had recorded a rise of 3.4% in the previous month.
  • In the US, pending home sales rose 3.4% on a MoM basis in March, more than market expectations and compared to an advance of 1.6% recorded in the prior month.
  • In Japan, the consumer price index (CPI) rose 1.8% on a YoY basis in April, less than market expectations for a rise of 2.6%. The Tokyo CPI had recorded a rise of 2.6% in the previous month.

CORPORATE UPDATES

SOUTH AFRICA

  • Clicks Group Limited (JO: CLSJ ): The retail company, in its 1H24 results, indicated that its revenue rose to R23.29bn from R21.35bn posted in the corresponding period of the previous year. Its diluted EPS increased 12.9% from the same period of the prior year to 532.90c.
  • Anglo American (JO: AGLJ ) receives BHP (ASX: BHP ) buyout proposal, could reshape copper market: London-listed miner Anglo American said it had received an all-share buyout proposal from BHP Group, a deal that would create the world’s biggest copper miner churning out around 10% of global output.

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