SOUTH AFRICA MARKET REVIEW
- South African markets closed lower on Friday, led by losses in technology sector stocks.
- Technology companies, Naspers (JO:NPNJn) and Prosus N.V. (JO:PRXJn) plunged 17.7% and 17.4%, respectively, after Chinese regulators announced plans to tighten curbs on the gaming market.
- On the flipside, food companies, RCL Foods (JO:RCLJ) and Famous Brands (JO:FBRJ) advanced 4.9% and 2.1%, respectively.
- Property stocks, Burstone Group (JO:BTNJ), Equites Property Fund (JO:EQUJ), Growthpoint Properties (JO:GRTJ) and Shaftesbury Capital gained 3.3%, 3.2%, 1.9% and 1.2%, respectively.
- Lenders, Capitec Bank Holdings (JO:CPIJ), Nedbank Group (JO:NEDJ), FirstRand (JO:FSRJ) and Standard Bank Group (JO:SBKJ) rose 3.1%, 2.1%, 1.8% and 1.6%, respectively.
- Pharmaceutical companies, The JSE All Share index declined 1.4% to close at 74,379.57.
UK MARKET REVIEW
- The UK market finished firmer on Friday, amid rising hopes that major central banks could consider interest rate cuts next year.
- Banking firms, Lloyds Banking Group (LON:LLOY) and HSBC Holdings (LON:HSBA) advanced 1.8% and 0.9%, respectively.
- On the other hand, retailer, JD Sports Fashion (LON:JD) shed 5.2%, after its US peer, Nike (NYSE:NKE) slashed its annual sales guidance, citing reduced consumer spending.
- Peers, Ocado Group (LON:OCDO) and B&M European Value Retail S.A. (LON:BMEB) dropped 4.3% and 1.1%, respectively.
- Gaming and entertainment company, Entain (LON:ENT) and Flutter Entertainment (LON:FLTRF) fell 2.5% and 0.5%, respectively.
- The FTSE 100 index marginally advanced to close at 7,697.51.
US MARKET REVIEW
- US markets ended higher yesterday, amid expectations that the US Federal Reserve could begin cutting interest rates as soon as March 2024.
- Technology company, Intel (NASDAQ:INTC) jumped 5.2%, after the Israeli government agreed to endow a $3.20bn grant to build a $25.00bn plant in southern Israel.
- Energy companies, Devon Energy Corporation (NYSE:DVN) and Diamondback Energy (NASDAQ:FANG) advanced 1.9% and 1.7%, respectively.
- On the contrary, cruise line companies, Norwegian Cruise Line Holdings (NYSE:NCLH) and Carnival Corporation (NYSE:CCL) dropped 2.9% and 1.7%, respectively.
- Airlines companies, American Airlines Group (NASDAQ:AAL), and Southwest Airlines (NYSE:LUV) shed 1.4% and 1.2%, respectively.
- The S&P 500 index rose 0.4% to settle at 4,774.75, while the DJIA index advanced 0.4% to close at 37,545.33.
- The NASDAQ index climbed 0.5% to end the trading session at 15,074.57.
ASIA MARKET REVIEW
- Asian markets are trading mostly higher this morning, tracking overnight gains on Wall Street.
- In Japan, pharmaceutical company, Sumitomo Pharma (TYO:4506) has advanced 4.5%.
- On the flipside, paper company, Nippon Paper Industries (TYO:3863) has eased 0.7%.
- In Hong Kong, internet technology company, Netease (HK:9999) has surged 10.7%.
- On the other hand, real estate company, Longfor Group Holdings (HK:0960) has shed 4.0%.
- In South Korea, artificial leather company, Duksung (KS:004830) has plunged 8.5%.
- On the contrary, broadcasting company, Seoul Broadcasting System (KS:034120) has soared 9.7%.
- The Nikkei 225 index is trading 1.1% higher at 33,658.32.
- The Hang Seng index has gained 1.2% to trade at 16,535.78, while the Kospi index is trading 0.1% lower at 2,600.40.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 0.2% to trade at $80.94/bl.
- Yesterday, Brent prices rose 2.5% to settle at $81.07/bl, as further attacks on ships in the Red Sea raised concerns over trade disruptions and on hopes over interest rate cuts that could boost economic growth and fuel demand. Moreover, the Baker Hughes reported that oil rigs count fell by 3 to 498 in the week ended 22 December 2023.
- At 05:30 SAST today, gold prices slightly declined to trade at $2,066.45/oz. Yesterday, gold gained 0.7% to close at $2,067.20/oz, as a weaker dollar and a drop in the US Treasury yields boosted demand for the safe haven yellow metal.
- Yesterday, copper marginally declined to close at $8,483.35/mt. Aluminium closed marginally lower at $2,317.65/mt.
CURRENCIES
- Yesterday, the South African rand weakened against the US dollar. In the US, the new home sales unexpectedly declined to a one-year low in November. Meanwhile, the Dallas Fed manufacturing business index improved in December. Also, the Chicago Fed National activity index rose in November.
- The yield on benchmark government bonds fell on Friday. The yield on 2030 bond declined to 9.75% while that for the longer-dated 2040 issue fell to 12.12%.
- At 05:30 SAST, the US dollar is trading 0.2% lower against the South African rand at R18.5996, while the euro is trading 0.3% lower at R20.5225. At 05:30 SAST, the British pound has declined 0.2% against the South African rand to trade at R23.6707.
- Yesterday, the euro advanced against most of the major currencies.
- At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.1035, while it has weakened 0.1% against the British pound to trade at GBP0.8671.
ECONOMIC UPDATES
- In the UK, retail sales rose 1.3% on a MoM basis in November, more than market expectations for a rise of 0.4%. Retail sales had recorded a revised flat reading in the previous month.
- In the UK, gross domestic product (GDP) unexpectedly dropped 0.1% on a QoQ basis in 3Q23, compared to a rise of 0.2% recorded in the previous quarter.
- In Spain, GDP advanced 0.3% on a QoQ basis in 3Q23, in line with market expectations. GDP had advanced by a revised 0.3% in the previous quarter.
- In Italy, consumer confidence index rose to a level of 106.70 in December, more than market expectations for a rise to a level of 103.80. The consumer confidence index had recorded a level of 103.60 in the prior month.
- In the US, durable goods orders advanced 5.4% in November, more than market expectations for a rise of 2.2%. Durable goods orders had recorded a revised drop of 5.1% in the prior month.
- In the US, the Michigan consumer sentiment index rose to a level of 69.70 in December, more than market expectations for a rise to a level of 69.40. The Michigan consumer sentiment index had recorded a level of 61.30 in the prior month.
- In the US, new home sales dropped 12.2% on a MoM basis in November, compared to a revised drop of 4.0% recorded in the previous month.
- In the US, the Chicago Fed National Activity Index rose to a level of 0.03 in November, compared to a level of -0.49 recorded in the previous month.
- In the US, the housing price index rose 0.3% on a MoM basis in October, less than market expectations for a rise of 0.5%. The housing price index had recorded a revised rise of 0.7% in the previous month.
- In the US, the Dallas Fed manufacturing business index rose to a level of -9.30 in December, compared to a level of -19.90 recorded in the previous month.
- In Canada, GDP unexpectedly recorded a flat reading on a MoM basis in October, compared to a revised similar reading recorded in the prior month.
- In Japan, the unemployment rate remained unchanged at 2.5% in November, in line with market expectations.
CORPORATE UPDATES
SOUTH AFRICA