SOUTH AFRICA MARKET REVIEW
- South African markets closed in the red yesterday, led by losses in mining sector stocks.
- Platinum miners, Northam Platinum (JO:NPHJ), Impala Platinum (JO:IMPJ) and Anglo American Platinum (JO:AMSJ) dropped 5.7%, 5.5% and 4.5%, respectively.
- Gold miners, AngloGold Ashanti (JO:ANGJ), Harmony Gold Mining (JO:HARJ) and Gold Fields (JO:GFIJ) declined 3.6%, 2.1% and 1.4%, respectively.
- Diversified miners, Pan African Resources (JO:PANJ), Anglo American (JO:AGLJ) and Exxaro Resources (JO:EXXJ) shed 2.9%, 1.8% and 0.9%, respectively.
- Telecommunications companies, Vodacom Group (JO:VODJ) and MTN Group (JO:MTNJ) fell 2.7% and 2.4%, respectively.
- Retailers, Cashbuild (JO:CSBJ), Pick ‘n Pay Stores (JO:PIKJ), Lewis Group (JO:LEWJ) and Shoprite Holdings (JO:SHPJ) eased 1.9%, 1.6%, 1.5% and 1.0%, respectively.
- The JSE All Share index declined 0.6% to close at 84,018.65.
UK MARKET REVIEW
- The UK market finished weaker yesterday, weighed down by losses in mining sector stocks.
- Miners, Antofagasta (LON:ANTO), Glencore (LON:GLEN), Fresnillo (LON:FRES) and Rio Tinto (LON:RIO) dropped 6.0%, 1.5%, 1.4% and 1.2%, respectively, amid Chinese demand concerns.
- Retailers, JD Sports Fashion (LON:JD), Burberry Group (LON:BRBY) and B&M European Value Retail S.A. (LON:BMEB) declined 4.1%, 2.2% and 1.5%, respectively.
- On the other hand, defense and aerospace companies, BAE Systems (LON:BAES) and Rolls-Royce Holdings (LON:RR) advanced 2.1% and 1.2% respectively.
- Pharmaceutical company, GSK (LON:GSK) gained 2.1%, after the Delaware Supreme Court agreed to review expert evidence in the Zantac litigation, boosting the company’s defense against cancer claims.
- The FTSE 100 index marginally declined to close at 8,343.85.
US MARKET REVIEW
- US markets ended lower yesterday, weighed down by losses in technology sector stocks.
- Semiconductor chip companies, Super Micro Computer (NASDAQ:SMCI), Micron Technology (NASDAQ:MU) and Intel Corporation (NASDAQ:INTC) plunged 19.0%, 3.1% and 2.3%, respectively.
- Technology companies, Salesforce (NYSE:CRM), Cisco Systems (NASDAQ:CSCO) and Microsoft Corporation (NASDAQ:MSFT) declined 2.0%, 1.7% and 0.8%, respectively.
- On the contrary, food companies, Tyson Foods (NYSE:TSN), Conagra Brands (NYSE:CAG) and Hormel Foods Corporation (NYSE:HRL) advanced 2.8%, 0.9% and 0.6%, respectively.
- Financial services companies, American Express (NYSE:AXP) and JPMorgan Chase (NYSE:JPM) gained 0.8% and 0.5%, respectively.
- The S&P 500 index fell 0.6% to settle at 5,592.18, while the DJIA index declined 0.4% to close at 41,091.42.
- The NASDAQ index eased 1.1% to end the trading session at 17,556.03.
ASIA MARKET REVIEW
- Asian markets are trading lower this morning, tracking overnight losses on Wall Street.
- In Japan, pharmaceutical company, Sumitomo Pharma (TYO:4506) has shed 3.1.
- On the flipside, chemicals company, Mitsui Chemicals (TYO:4183) has gained 1.4%.
- In Hong Kong, automobile company, Li Auto (NASDAQ:LI) has plummeted 11.4%.
- On the other hand, pharmaceutical company, Sinopharm Group (HK:1099) has added 1.3%.
- In South Korea, semiconductor company, Hanmi Semiconductor (KS:042700) has plunged 9.5%.
- On the contrary, chemical company, ISU Specialty Chemical (KS:457190) has surged 9.1%.
- The Nikkei 225 index is trading 0.4% lower at 38,220.34.
- The Hang Seng index has declined 0.9% to trade at 17,538.49, while the Kospi index is trading 0.9% lower at 17,538.49.
COMMODITIES
- At 05:30 SAST today, Brent prices rose 0.2% to trade at $78.82/bl, amid Libya supply concerns.
- Yesterday, Brent prices fell 1.1% to settle at $78.65/bl, due to a smaller-than-expected drop in crude inventories and ongoing concerns about Chinese demand. Additionally, the US Energy Information Administration (EIA) reported that the US crude inventories fell by 0.85mn bls in the week ended 23 August 2024.
- At 05:30 SAST today, gold prices advanced 0.5% to trade at $2,515.40/oz. Yesterday, gold declined 0.9% to close at $2,502.25/oz, as a stronger dollar dented demand for the safe haven yellow metal.
- Yesterday, copper declined 2.1% to close at $9,135.05/mt. Aluminium closed 2.6% lower at $2,484.15/mt.
CURRENCIES
- Yesterday, the South African rand weakened against the US dollar. In the US, the number of MBA mortgage application rose in the week ended 23 August 2024.
- The yield on benchmark bonds were unchanged yesterday. The yield on the 2034 generic bond stood at 10.42%, while that for the longer-dated 2044 generic issue stood at 11.28%.
- At 05:30 SAST, the US dollar is trading 0.1% lower against the South African rand at R17.8124, while the euro is trading 0% higher at R19.8302. At 05:30 SAST, the British pound has declined 0% against the South African rand to trade at R23.5175.
- Yesterday, the euro mostly declined against most of the major currencies.
- At 05:30 SAST, the euro advanced 0.1% against the US dollar to trade at $1.1132, while it has marginally gained against the British pound to trade at GBP0.8432.
ECONOMIC UPDATES
- In Switzerland, the ZEW expectations index fell to a level of 3.40 in August, compared to a rise to a level of 9.40 recorded in the previous month.
- In France, the consumer confidence index rose to a level of 92.00 in August, in line with market expectations. The consumer confidence index had recorded a level of 91.00 in the prior month.
- In Italy, seasonally adjusted industrial sales rose 0.1% on a MoM basis in June, compared to a drop of 0.9% recorded in the previous month.
- In the US, the MBA mortgage applications rose 0.5% in the week ended 23 August 2024, compared to a drop of 10.1% recorded in the previous week.
CORPORATE UPDATES
SOUTH AFRICA
- Bid Corporation Limited (JO:BIDJ): The foodservice company, in its FY24 results, reported that its revenue rose to R225.91bn from R196.34bn posted in the previous year. Its diluted EPS increased 15.9% from the prior year to 2,383.40c.
- Pick n Pay (JO:PIKJ) shareholders push back against R16.00mn golden handshake: Pick n Pay shareholders have expressed dissent with the R16.00mn termination payout to former CEO Pieter Boone, triggering a JSE rule that requires the retailer to address their concern.