SOUTH AFRICA MARKET REVIEW
- South African markets closed in the red yesterday, as market participants await US inflation data and the timing of interest-rate cuts.
- Retailers, Pick ‘n Pay Stores (JO:PIKJ), Foschini Group (JO:TFGJ), SPAR Group (JO:SPPJ) and Shoprite Holdings (JO:SHPJ) dropped 4.3%, 2.4%, 2.2% and 1.6%, respectively.
- Property developers, Emira Property Fund (JO:EMIJ), Resilient REIT (JO:RESJ), Redefine Properties (JO:RDFJ) and Attacq (JO:ATTJ) declined 2.4%, 2.1%, 1.9% and 1.7%, respectively.
- Telecommunications companies, Telkom SA SOC (JO:TKGJ) and Vodacom Group (JO:VODJ) shed 1.6% and 1.3%, respectively.
- Pharmaceutical companies, Netcare (JO:NTCJ) and Aspen Pharmacare Holdings (JO:APNJ) fell 1.1% and 0.6%, respectively.
- On the flipside, diversified miners, Pan African Resources (JO:PANJ), Exxaro Resources (JO:EXXJ) and Kumba Iron Ore (JO:KIOJ) advanced 2.7%, 2.2% and 1.5%, respectively.
- The JSE All Share index declined 0.7% to close at 73,142.13.
UK MARKET REVIEW
- The UK market finished weaker yesterday, weighed down by losses in consumer staples stocks.
- Tobacco company, Imperial Brands (LON:IMB) dropped 4.8%, amid reports that British Finance Minister, Jeremy Hunt might announce a new UK tax on vapes as part of his budget next week.
- Chemicals company, Croda International (LON:CRDA) declined 3.2%, after the company issued dismal profit outlook for FY24, amid weaker demand.
- Consumer goods company, Unilever (LON:ULVR) and Reckitt Benckiser Group (LON:PSN) fell 2.0% and 0.6%, respectively.
- On the other hand, miners, Antofagasta (LON:ANTO), Rio Tinto (LON:RIO) and Glencore (JO:GLNJ) advanced 1.4%, 0.9% and 0.8%, respectively.
- Banking firms, HSBC Holdings (LON:HSBA), Standard Chartered (LON:STAN) and Lloyds Banking Group (LON:LLOY) gained 1.1%, 1.0% and 0.9%, respectively.
- The FTSE 100 index marginally declined to close at 7,683.02.
US MARKET REVIEW
- US markets ended mostly higher yesterday, ahead of the domestic economic data for further cues on rate cuts outlook.
- Media and entertainment companies, Netflix (NASDAQ:NFLX), Warner Bros Discovery (NASDAQ:WBD) and Walt Disney (NYSE:DIS) advanced 2.4%, 1.8% and 1.6%, respectively.
- On the contrary, fast-food chain companies, Domino’s Pizza (NYSE:DPZ), McDonald’s Corporation (NYSE:MCD) and Wendy’s (NASDAQ:WEN) dropped 2.8%, 1.1% and 0.5%, respectively.
- Pharmaceutical company, UnitedHealth Group (NYSE:UNH) declined 2.3%, amid reports that the US Department of Justice launched an antitrust investigation into the company.
- The S&P 500 index rose 0.2% to settle at 5,078.18, while the DJIA index declined 0.2% to close at 38,972.41.
- The NASDAQ index climbed 0.4% to end the trading session at 16,035.30.
ASIA MARKET REVIEW
- Asian markets are trading mostly lower this morning.
- In Japan, chemicals company, Mitsui Chemicals (TYO:4183) has declined 2.0%.
- On the flipside, chemical company, Sumitomo Chemical (TYO:4005) has advanced 2.5%.
- In Hong Kong, pharmaceutical company, CSPC Pharmaceutical (HK:1093) has shed 2.4%.
- On the other hand, automobile company, Li Auto (NASDAQ:LI) has gained 1.7%.
- In South Korea, dental equipment company, Dentium (KS:145720) has jumped 6.6%.
- On the contrary, automobile company, KR Motors (KS:000040) has dropped 6.4%.
- The Nikkei 225 index is trading 0.1% lower at 39,191.99.
- The Hang Seng index is trading 0.9% lower at 16,644.21, while the Kospi index is trading 0.6% higher at 2,642.36.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 0.5% to trade at $83.2/bl.
- Yesterday, Brent prices rose 1.4% to settle at $83.65/bl, on expectations that the OPEC+ would consider extending voluntary oil output cuts into the second quarter. Meanwhile, the American Petroleum Institute (API) reported that the US crude oil inventories rose by 8.43mn bls in the week ended 23 February 2024.
- At 05:30 SAST today, gold prices marginally advanced to trade at $2,030.33/oz. Yesterday, gold declined 0.1% to close at $2,029.64/oz.
- Yesterday, copper rose 0.3% to close at $8,396.40/mt. Aluminium closed 0.7% higher at $2,199.69/mt.
CURRENCIES
- Yesterday, the South African rand strengthened against the US dollar. In the US, durable goods orders declined in January. Meanwhile, the Richmond Fed manufacturing index rose in February. Also, the Dallas Fed manufacturing business index improved in February.
- The yield on benchmark government bonds fell yesterday. The yield on the 2030 bond declined to 10.20%, while that for the longer-dated 2040 issue fell to 12.49%.
- At 05:30 SAST, the US dollar is trading 0.2% higher against the South African rand at R19.1293, while the euro is trading slightly higher at R20.716. At 05:30 SAST, the British pound has marginally gained against the South African rand to trade at R24.2261.
- Yesterday, the euro declined against most of the major currencies.
- At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.0835, while it has marginally gained against the British pound to trade at GBP0.8553.
ECONOMIC UPDATES
- In France, the consumer confidence index unexpectedly fell to a level of 89.00 in February, compared to a level of 91.00 recorded in the prior month.
- In Germany, the GfK consumer confidence index rose to a level of -29.00 in March, compared to a revised level of -29.60 recorded in the prior month.
- In the US, the CB consumer confidence index unexpectedly dropped to a level of 106.70 in February, compared to a revised level of 110.90 recorded in the prior month.
- In the US, durable goods orders dropped 6.1% in January, less than market expectations and compared to a revised drop of 0.3% recorded in the prior month.
- In the US, the housing price index rose 0.1% on a MoM basis in December, less than market expectations for a rise of 0.3%. The housing price index had recorded a revised rise of 0.4% in the prior month.
- In the US, the Richmond Feb manufacturing index rose to a level of -5.00 in February, less than market expectations for a rise to a level of -4.00. The Richmond Fed manufacturing index had recorded a level of -15.00 in the previous month.
- In the US, the Dallas Feb manufacturing business index rose to a level of -11.30 in February, compared to a level of -27.40 recorded in the previous month.
- The Reserve Bank of New Zealand (RBNZ) kept its key interest rate unchanged at 5.5%, in line with market expectations.
CORPORATE UPDATES
SOUTH AFRICA
- Super Group Limited (JO:SPGJ): The logistics and mobility solutions company, in its 1H24 results, revealed that revenue rose to R33.22bn from R29.69bn posted in the corresponding period of the previous year. Its diluted EPS decreased 14.4% from the same period of the prior year to 205.60c.
- RCL Foods Limited (JO:RCLJ): The food company, in its further trading update for the six months ended 31 December 2023, stated that it expects EPS from total operations to be between 118.10c to 121.50c, as compared with 57.60c recorded in the previous year. Also, it expects HEPS from total operations to be between 79.50c to 82.30c, as compared with 56.40c recorded in the prior year. The company intends to release final results on 4 March 2024.
- MiX Telematics (JO:MIXJ) close to completing merger with US-based PowerFleet: MiX Telematics is one step closer to completing a merger with US-based internet of things (IoT) specialist PowerFleet, after receiving approval from competition authorities.