Market Review, Commodities, Currencies, Economic & Corporate Update - 27.11.23

  • Market Overview

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the green on Friday, buoyed by gains in mining and banking sector stocks.
  • Gold miners, Sibanye Stillwater (JO: SSWJ ), Harmony Gold Mining (JO: HARJ ), AngloGold Ashanti (JO: ANGJ ) and Gold Fields (JO: GFIJ ) gained 2.2%, 2.1%, 1.8% and 1.4%, respectively.
  • Financial services companies, Absa Group (JO: ABGJ ), Capitec Bank Holdings (JO: CPIJ ), Nedbank Group (JO: NEDJ ), FirstRand (JO: FSRJ ) and Investec (JO: INLJ ) advanced 2.0%, 1.9%, 1.8%, 1.6% and 1.5%, respectively.
  • Real estate companies, Fortress REIT (JO: FFAJ ), Shaftesbury Capital, Emira Property Fund (JO: EMIJ ) and Attacq (JO: ATTJ ) added 1.5%, 1.4%, 1.0% and 0.9%, respectively.
  • On the flipside, retailers, Pick n Pay Stores (JO: PIKJ ), Cashbuild (JO: CSBJ ), Cie Financiere Richemont S.A. (JO: CFRJ ), Mr Price Group (JO: MRPJ ) eased 2.2%. 1.2%, 1.1% and 1.0%, respectively.
  • Platinum miners, Northam Platinum (JO: NPHJ ) and Impala Platinum Holdings (JO: IMPJ ) shed 1.7% and 0.9%, respectively.
  • The JSE All Share index rose 0.4% to close at 75,712.40.

UK MARKET REVIEW

  • The UK market finished firmer on Friday, boosted by gains in retail sector stocks.
  • Retailers, Kingfisher (LON: KGF ), Ocado Group (LON: OCDO ), B&M European Value Retail S.A. (LON: BMEB ) and Tesco (LON: TSCO ) advanced 2.1%, 2.0%, 1.7% and 1.4%, respectively.
  • Telecommunications company, Vodafone Group (LON: VOD ) added 1.2%, amid reports that telecom operator Fastweb is exploring a potential deal for Vodafone's Italian operations.
  • Insurance company, Legal & General Group (LON: LGEN ) rose 0.6%, after the company agreed GBP4.8bn full buy-in for the Boots pension scheme.
  • On the other hand, miners, Anglo American and Antofagasta (LON: ANTO ) eased 0.7% and 0.6%, respectively.
  • The FTSE 100 index added 0.1% to close at 7,488.20.

US MARKET REVIEW

  • US markets closed mostly higher on Friday, amid gains in retailers.
  • Robotics company, IRobot (NASDAQ: IRBT ) skyrocketed 39.1%, amid reports that Amazon (NASDAQ: AMZN ) is set to win unconditional EU antitrust approval for its $1.4bn acquisition.
  • Insurance companies, Travelers (NYSE: TRV ). and UnitedHealth Group (NYSE: UNH ) added 0.8% and 0.6%, respectively.
  • On the contrary, software company, Nvidia (NASDAQ: NVDA ) shed 1.9%, after the company delayed the launch of China-focused AI chip designed to comply with US export rules until the first quarter of 2024.
  • The S&P 500 index rose 0.1% to settle at 4,559.34, while the DJIA index advanced 0.3% to close at 35,390.15.
  • The NASDAQ index eased 0.1% to end the trading session at 14,250.85.

ASIA MARKET REVIEW

  • Asian markets are trading lower this morning, ahead of the US and eurozone inflation reports due this week.
  • In Japan, steel-making company, Kobe Steel (TYO: 5406 ) has gained 1.7%.
  • On the flipside, battery manufacturing company, Sumitomo Metal Mining (TYO: 5713 ) has dropped 3.5%.
  • In Hong Kong, optical products company, Sunny Optical Technology Group (HK: 2382 ) has added 0.9%.
  • On the other hand, BYD Co has shed 4.1%. In South Korea, industrial robots manufacturing company, Doosan Robotics (KS: 454910 ) has jumped 12.0%.
  • On the contrary, electronics company, Samsung Electronics (KS: 005930 ) has eased 0.8%.
  • The Nikkei 225 index is trading 0.4% lower at 33,479.71.
  • The Hang Seng index is trading 0.9% lower to trade at 17,393.27, while the Kospi index is trading 0.1% lower at 2,495.31.

COMMODITIES

  • At 05:30 SAST today, Brent prices fell 0.9% to trade at $79.84/bl.
  • On Friday, Brent prices fell 1.0% to settle at $80.58/bl, as investors await the OPEC+ meeting due this week.
  • At 05:30 SAST today, gold prices advanced 0.4% to trade at $2,009.10/oz.
  • On Friday, gold gained 0.4% to close at $2,001.97/oz, as a weaker greenback boosted demand for the safe haven yellow metal.
  • On Friday, copper rose 0.3% to close at $8,329.95/mt.
  • Aluminium closed 0.2% lower at $2,219.34/mt.

CURRENCIES

  • On Friday, the South African rand weakened against the US dollar. In the US, manufacturing activity weakened in November. Meanwhile, the services PMI unexpectedly rose in November.
  • The yield on benchmark government bonds rose on Friday. The yield on the 2030 bond rose to 10.20% while that for the longer-dated 2040 issue rose to 12.33%.
  • At 05:30 SAST, the US dollar is trading 0% lower against the South African rand at R18.7786, while the euro is trading 0.3% higher at R20.6102. At 05:30 SAST, the British pound has gained 0.2% against the South African rand to trade at R23.7299.
  • On Friday, the euro strengthened against most of the major currencies. In Germany, gross domestic product (GDP) eased in 3Q23. Meanwhile, the Ifo business morale rose less than market forecast in November. Further, both, the Ifo current assessment and business expectations rose less than expected in November.
  • At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.0942, while it has gained 0% against the British pound to trade at GBP0.8688.

ECONOMIC UPDATES

  • In Germany, seasonally adjusted final GDP recorded a drop of 0.1% on a QoQ basis in 3Q23, in line with market expectations and compared to a flat reading recorded in the previous quarter.
  • In Germany, the Ifo business climate index climbed to a level of 87.30 in November, less than market expectations for an advance to a level of 87.50. The Ifo business climate index had recorded a reading of 86.90 in the previous month.
  • In Germany, the Ifo current assessment index registered a rise to a level of 89.40 in November, compared to a level of 89.20 recorded in the prior month. Market expectations were for an advance to a level of 89.50.
  • In Germany, the Ifo business expectations index jumped less than expectations to 85.20 in November, compared to a revised reading of 84.80 recorded in the prior month.
  • In the US, the preliminary manufacturing PMI eased to 49.40 in November, more than market expectations and compared to a level of 50.00 recorded in the previous month.
  • In the US, the flash services PMI unexpectedly rose to a level of 50.80 in November, compared to a level of 50.60 recorded in the previous month.
  • In Canada, retail sales climbed 0.6% on a MoM basis in September, compared to a drop of 0.1% recorded in the prior month.
  • In Japan, the corporate service price index rose 2.3% on a YoY basis in October, more than market expectations and compared to 2.1% recorded in the prior month.

CORPORATE UPDATES

SOUTH AFRICA

  • Anglo American (JO: AGLJ ) consults on potential SA job cuts: Anglo American is considering cutting jobs at two units in South Africa because of declining platinum-group metal (PGM) prices and bottlenecks curbing iron ore exports, four people familiar with the situation said.

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