Market Review, Commodities, Currencies, Economic & Corporate Update - 29.02.24

  • Stock Market Analysis

SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the red yesterday, amid losses in retail sector stocks.
  • Retailers, Cashbuild shed 8.3%, after the company reported a drop in its interim profits.
  • Peers, Pick ‘n Pay Stores (JO: PIKJ ) and Foschini Group (JO: TFGJ ) dropped 5.9% and 1.2%, respectively.
  • Platinum miners, Impala Platinum (JO: IMPJ ), Northam Platinum (JO: NPHJ ) and Anglo American Platinum (JO: AMSJ ) declined 3.1%, 2.2% and 1.1%, respectively.
  • Diversified miners, Anglo American (JO: AGLJ ), African Rainbow Minerals (JO: ARIJ ) and Exxaro Resources (JO: EXXJ ) edged down 3.0%, 2.2% and 2.0%, respectively.
  • Property developers, Redefine Properties (JO: RDFJ ), Growthpoint Properties (JO: GRTJ ) and Equites Property Fund (JO: EQUJ ) fell 2.0%, 1.4% and 1.0%, respectively.
  • Gold miners, AngloGold Ashanti (JO: ANGJ ) and Gold Fields (JO: GFIJ ) eased 1.7% and 1.2%, respectively.
  • The JSE All Share index declined 1.3% to close at 72,204.56.

UK MARKET REVIEW

  • The UK market finished weaker yesterday, following dismal domestic corporate earnings results.
  • Investment management company, St James’s Place (LON: SJP ) plummeted 18.6%, to an 11-year low, after the company reported annual loss after making a GBP426.00mn ($538.98mn) provision for potential client refunds.
  • Consumer goods company, Reckitt Benckiser Group (LON: PSN ) plunged 13.3%, after the company reported drop in like-for-like net sales in 4Q23 and revealed compliance issue in Middle Eastern markets.
  • Homebuilding company, Taylor Wimpey (LON: TW ) dropped 4.8%, after the company reported drop in its annual profits and further slashed its building targets for FY24.
  • On the other hand, banking firms, Barclays (LON: BARC ) and Standard Chartered (LON: STAN ) advanced 1.2% and 1.0%, respectively.
  • The FTSE 100 index declined 0.8% to close at 7,624.98.

US MARKET REVIEW

  • US markets ended lower yesterday, ahead of a key US inflation data that could impact the US Federal Reserve’s monetary policy stance.
  • Semiconductor equipment company, Applied Materials (NASDAQ: AMAT ) declined 2.6%, on the back of news that the company received subpoena related to China shipments from the US Securities and Exchange Commission.
  • Technology companies, Intel (NASDAQ: INTC ), Qualcomm (NASDAQ: QCOM ) and Apple (NASDAQ: AAPL ) shed 1.7%, 1.0% and 0.7%, respectively.
  • On the contrary, aircraft manufacturing company, Boeing (NYSE: BA ) advanced 2.8%. Financial services companies, Goldman Sachs Group (NYSE: GS ), Visa (NYSE: V ), Morgan Stanley (NYSE: MS ) and JPMorgan Chase (NYSE: JPM ) gained 1.3%, 0.9%, 0.7% and 0.5%, respectively.
  • The S&P 500 index fell 0.2% to settle at 5,069.76, while the DJIA index declined 0.1% to close at 38,949.02.
  • The NASDAQ index eased 0.5% to end the trading session at 15,947.74.

ASIA MARKET REVIEW

  • Asian markets are trading mostly lower this morning, tracking overnight losses on Wall Street.
  • In Japan, electronics company, Renesas Electronics (TYO: 6723 ) has declined 2.4%.
  • On the flipside, transportation company, Kawasaki Kisen Kaisha (TYO: 9107 ) has advanced 3.0%.
  • In Hong Kong, sports products company, Anta Sports Products (HK: 2020 ) has advanced 2.9%.
  • On the other hand, e-commerce company, JD.com (HK: 9618 ) has shed 1.2%.
  • In South Korea, chemical company, ISU Specialty Chemical (KS: 457190 ) has dropped 6.6%.
  • On the contrary, entertainment company, Ascendio (KS: 012170 ) has surged 12.5%.
  • The Nikkei 225 index is trading 0.6% lower at 38,953.49.
  • The Hang Seng index is trading 0.3% higher at 16,585.25, while the Kospi index is trading 0.3% lower at 2,643.60.

COMMODITIES

  • At 05:30 SAST today, Brent prices fell 0.2% to trade at $83.53/bl, on demand concerns.
  • Yesterday, Brent prices marginally rose to settle at $83.68/bl. The US Energy Information Administration (EIA) reported that the US crude inventories advanced by 4.20mn bls in the week ended 23 February 2024.
  • At 05:30 SAST today, gold prices advanced 0.1% to trade at $2,035.71/oz. Yesterday, gold gained 0.2% to close at $2,034.62/oz, amid hawkish comments from the US central bank officials.
  • Yesterday, copper marginally declined to close at $8,396.40/mt. Aluminium closed slightly lower at $2,199.69/mt.

CURRENCIES

  • Yesterday, the South African rand weakened against the US dollar. In the US, gross domestic product (GDP) improved less than expected in 4Q23. Meanwhile, the number of MBA mortgage applications declined in the week ended 23 February 2024.
  • The yield on benchmark government bonds fell yesterday. The yield on the 2030 bond declined to 10.19%, while that for the longer-dated 2040 issue fell to 12.43%.
  • At 05:30 SAST, the US dollar is trading slightly lower against the South African rand at R19.2447, while the euro is trading 0.2% lower at R20.85. At 05:30 SAST, the British pound has declined 0.1% against the South African rand to trade at R24.3777.
  • Yesterday, the euro mostly advanced against most of the major currencies. In the eurozone, the economic sentiment index unexpectedly weakened to a 3-month low in February. Moreover, the services sentiment index weakened in February. Meanwhile, the consumer confidence index rose in February.
  • At 05:30 SAST, the euro marginally slipped against the US dollar to trade at $1.0836, while it has weakened 0.1% against the British pound to trade at GBP0.8555.

ECONOMIC UPDATES

  • In Switzerland, the ZEW expectations index rose to a level of 10.20 in February, compared to a level of -19.50 recorded in the prior month.
  • In Italy, the business confidence index unexpectedly declined to a level of 87.30 in February, compared to a revised level of 88.10 recorded in the prior month.
  • In Italy, the consumer confidence index advanced to a level of 97.00 in February, more than market expectations for a rise to a level of 96.90. The consumer confidence index had recorded a level of 96.40 in the prior month.
  • In the eurozone, the economic sentiment index unexpectedly dropped to a level of 95.40 in February, compared to a revised level of 96.10 recorded in the prior month.
  • In the eurozone, the consumer confidence index rose to a level of -15.50 in February, in line with market expectations and compared to a level of -16.10 recorded in the prior month.
  • In the eurozone, the services sentiment index unexpectedly eased to a level of 6.00 in February, compared to a revised level of 8.40 recorded in the prior month.
  • In the US, the MBA mortgage applications dropped 5.6% in the week ended 23 February 2024, compared to a drop of 10.6% recorded in the previous week.
  • In the US, annualised gross domestic product (GDP) rose 3.2% in 4Q23, less than market expectations for a rise of 3.3%. GDP had advanced 4.9% in the prior quarter.
  • In the US, the goods trade deficit widened to $90.20bn in January, compared to a deficit of $89.10bn recorded in the previous month.
  • In Japan, industrial production dropped 1.5% on a YoY basis in January, compared to a drop of 1.0% recorded in the previous month.
  • In Australia, retail sales rose 1.1% on a MoM basis in January, less than market expectations for a rise of 1.5%. Retail sales had declined 2.7% in the previous month.

CORPORATE UPDATES

SOUTH AFRICA

  • Standard Bank Group Limited (JO: SBKJ ): The banking company, in its FY23 trading update, revealed that it expects EPS to be 25.0% to 30.0%, higher as compared with 2,074.10c recorded in the prior year. Also, it expects HEPS to be 23.0% to 28.0%, higher as compared with 2,050.40c recorded in the previous year. The company intends to release its annual results on 14 March 2024.
  • Anglo American Platinum Limited (JO: AMSJ ): The platinum mining company announced that it has entered into a 20-year Energy Offtake Agreement (EOA) with Envusa Energy Proprietary Limited, through its wholly owned subsidiary, Rustenburg Platinum Mines Limited. Under the EOA, Envusa Energy would supply RPM with around 460 MW of renewable energy generated through its Koruson 2 solar and wind projects, via the Eskom electricity grid. The construction on the Koruson 2 projects is expected to begin in 2024, with all the projects planned to reach commercial operation during 2026.
  • Harmony Gold Mining Company Limited (JO: HARJ ): The gold mining company, in its interim results, announced that its revenue rose to R31.42bn from R23.26bn posted in the corresponding period of the previous year. Its diluted EPS stood at 953.00c, compared with 297.00c recorded in the corresponding period of the previous year.
  • Woolworths Holdings Limited (JO: WHLJ ): The retail company, in its 1H24 results, stated that revenue increased to R37.93bn from R35.86bn posted in the corresponding period of the previous year. Its diluted EPS fell to 200.90c from the same period of the prior year.
  • African Rainbow Minerals Limited (JO: ARIJ ): The mining company, in its interim trading update for the six months ended 31 December 2023, revealed that it expects basic EPS to be between 448.00c and 671.00c, as compared with 2,239.00c recorded in the same period of the previous year. Also, it expects HEPS to be between 1,139.00c and 1,583.00c, as compared with 2,639.00c recorded in the corresponding period of the previous year.
  • AECI Limited (JO: AFEJ ): The chemicals company, in its FY23 results, reported that revenue advanced 5.4% from the preceding year to R37.50bn. Its diluted EPS stood at R10.92, compared with R8.74 recorded in the previous year.
  • Kap Limited: The diversified industrial company, in its 1H24 results, indicated that its revenue fell to R15.03bn from R15.27bn posted in the corresponding period of the previous year. Its diluted EPS decreased 36.2% from the same period of the prior year to 21.00c.
  • Cashbuild Limited (JO: CSBJ ): The retail company, in its interim results for the year ended 24 December 2023, revealed that its revenue rose 2.5% from the same period of the preceding year to R5.79bn. Its diluted EPS stood at 14.00c, compared with 651.20c recorded in the corresponding period of the previous year.
  • Business ‘elated’ at choice of Michelle Phillips as Transnet CEO: Minister of public enterprises Pravin Gordhan announced that Transnet veteran Michelle Phillips had been appointed to lead the state-owned rail, port and pipeline company.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100