SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green on Friday, boosted by gains in shares of Sibanye Stillwater (JO:SSWJ). The company jumped 6.9%, following the amendment to the US mining regulations, which is set to reduce costs for platinum group metal (PGM) miners. This change is expected to significantly benefit its US PGM operations in Montana, providing substantial financial relief.
- Diversified miners, African Rainbow Minerals (JO:ARIJ), Kumba Iron Ore (JO:KIOJ) and Anglo American (JO:AGLJ) advanced 2.2%, 2.0% and 1.7%, respectively.
- Retailers, Shoprite Holdings (JO:SHPJ), Pick ‘n Pay Stores (JO:PIKJ) and Mr Price Group (JO:MRPJ) rose 1.6%, 1.0% and 0.9%, respectively.
- On the flipside, lenders, FirstRand (JO:FSRJ), Nedbank Group (JO:NEDJ) and Capitec Bank Holdings (JO:CPIJ) dropped 2.8%, 2.0% and 1.6%, respectively.
- The JSE All Share index advanced 0.1% to close at 87,015.81.
UK MARKET REVIEW
- The UK market finished weaker on Friday, fueled by concerns over weakening consumer confidence and the upcoming Budget.
- Banking firm, Lloyds Banking Group (LON:LLOY) plunged 7.3%, after a London court ruled that motor finance brokers must fully disclose commission details to customers when arranging car loans.
- Insurance companies, Aviva (LON:AV), Admiral Group (LON:ADML) and Prudential (LON:PRU) declined 2.4%, 1.5% and 1.1%, respectively.
- Real estate companies, Barratt Redrow (LON:BTRW), Land Securities Group (LON:LAND) and British Land (LON:BLND) Company shed 1.8%, 1.3% and 0.8%, respectively.
- On the other hand, banking firm, NatWest Group (LON:NWG) rose 0.6%, after the company reported jump in 3Q24 profits and raised its income forecast for FY24.
- The FTSE 100 index declined 0.2% to close at 8,248.84.
US MARKET REVIEW
- US markets ended mostly lower on Friday, ahead of major corporate earnings results.
- Healthcare services companies, Universal Health Services (NYSE:UHS) and HCA Healthcare (NYSE:HCA) plunged 9.8% and 8.9%, respectively.
- Financial services companies, Goldman Sachs Group (NYSE:GS), JPMorgan Chase (NYSE:JPM) and American Express (NYSE:AXP) dropped 2.3%, 1.2% and 1.0%, respectively.
- Pharmaceutical companies, Abbott Laboratories (NYSE:ABT), Merck & Company (NYSE:MRK) and Pfizer (NYSE:PFE) shed 2.0%, 1.8% and 0.7%, respectively.
- On the contrary, technology companies, Intel Corporation (NASDAQ:INTC), Salesforce (NYSE:CRM) and Microsoft Corporation (NASDAQ:MSFT) advanced 1.5%, 1.3% and 0.8%, respectively.
- The S&P 500 index marginally fell to settle at 5,808.12, while the DJIA index declined 0.6% to close at 42,114.40.
- The NASDAQ index climbed 0.6% to end the trading session at 18,518.61.
ASIA MARKET REVIEW
- Asian markets are trading mostly higher this morning, following Japan's Prime Minister Ishiba losing his coalition's parliamentary majority, which has heightened policy uncertainty.
- In Japan, automobile company, Toyota Motor Corporation (TYO:7203) has advanced 4.1%.
- On the flipside, chemical company, Shin-etsu Chemical (TYO:4063) has shed 4.1%.
- In Hong Kong, pharmaceutical company, CSPC Pharmaceutical (HK:1093) has declined 1.4%.
- On the other hand, real estate company, In South Korea, seafood company, Sajo Industries (KS:007160) has surged 15.3%.
- On the contrary, chemical company, Sam Young Chemical (KS:003720) has dropped 6.2%.
- The Nikkei 225 index is trading 1.5% higher at 38,493.60.
- The Hang Seng index has declined 0.2% to trade at 20,542.52, while the Kospi index is trading 0.8% higher at 2,603.94.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 4.4% to trade at $72.69/bl.
- On Friday, Brent prices rose 2.2% to settle at $76.05/bl, as investors assessed ongoing conflict in the Middle East as well as upcoming elections in the US. Moreover, the Baker Hughes reported that oil rigs count fell by 2 to 480 in the week ended 25 October 2024.
- At 05:30 SAST today, gold prices declined 0.6% to trade at $2,732.24/oz. On Friday, gold gained 0.4% to close at $2,747.69/oz, amid ongoing concerns over Middle East conflict and US election due next month.
- On Friday, copper rose 0.2% to close at $9,384.90/mt. Aluminium closed 1.6% higher at $2,677.65/mt.
CURRENCIES
- On Friday, the South African rand weakened against the US dollar. In the US, the Michigan consumer sentiment index rose more than expected in October.
- The yield on benchmark bonds fell on Friday. The yield on the SA 10-year generic bond declined to 10.49%, while that for SA 20-year generic bond fell to 11.24%.
- At 05:30 SAST, the US dollar is trading 0.1% higher against the South African rand at R17.7041, while the euro is trading 0.1% higher at R19.0985. At 05:30 SAST, the British pound has gained 0.2% against the South African rand to trade at R22.9304.
- On Friday, the euro declined against most of the major currencies. In Germany, the Ifo business climate index improved for the first time in 5 months in October.
- At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.0789, while it has marginally gained against the British pound to trade at GBP0.8332.
ECONOMIC UPDATES
- In Germany, the Ifo business climate index rose more than expected to a level of 86.50 in October, compared to a level of 85.40 recorded in the prior month.
- In Germany, the Ifo current assessment index climbed to a level of 85.70 in October, compared to a level of 84.40 recorded in the previous month.
- In Germany, the Ifo expectations index advanced more than expected to a level of 87.30 in October, compared to a revised level of 86.40 recorded in the previous month.
- In Italy, the business confidence index unexpectedly dropped to a level of 85.80 in October, compared to a revised level of 86.60 recorded in the previous month.
- In Italy, the consumer confidence index unexpectedly fell to a level of 97.40 in October, compared to a level of 98.30 recorded in the previous month.
- In the US, the Michigan consumer sentiment index unexpectedly rose to a level of 70.50 in October. The Michigan consumer sentiment index had recorded a level of 70.10 in the prior month.
- In Canada, retail sales rose 0.4% on a MoM basis in August, less than market expectations for a rise of 0.5%. Retail sales had recorded a rise of 0.9% in the prior month.
CORPORATE UPDATES
SOUTH AFRICA
- Dis-chem Pharmacies Limited (JO:DCPJ): The retail pharmacy chain company, in its 1H25 results, reported that revenue from contracts with customers rose to R19.56bn from R17.86bn posted in the same period of the preceding year. Its diluted EPS increased 15.4% from the corresponding period of the previous year to 67.30c.
- Oil set for weekly gain due to Middle East risks: Oil prices nudged higher and were on track for a weekly gain of more than 1.0%, as tensions in the world’s top oil-producing region, the Middle East, and a restart in Gaza ceasefire talks in the coming days kept traders on edge