SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green yesterday, buoyed by gains in retail and banking sector stocks.
- Retailer, SPAR Group (JO:SPPJ) jumped 11.3%, after the company announced plans to sell its unprofitable investment in Poland.
- Lender, Capitec Bank Holdings (JO:CPIJ) gained 6.4%, after the company reported a 9% rise in its interim profits.
- Platinum miners, Impala Platinum (JO:IMPJ), Northam Platinum (JO:NHMJ) and Anglo American Platinum (JO:AMSJ) advanced 4.1%, 2.8% and 2.0%, respectively.
- Diversified miners, Anglo American (JO:AGLJ), Kumba Iron Ore (JO:KIOJ) and Exxaro Resources (JO:EXXJ) gained 3.4%, 2.1% and 2.0%, respectively.
- On the flipside, gold miners, Gold Fields (JO:GFIJ) and AngloGold Ashanti (JO:ANGJ) declined 4.4% and 3.0%, respectively.
- The JSE All Share index advanced 0.5% to close at 72,505.99.
UK MARKET REVIEW
- The UK market finished firmer yesterday, supported by gains in mining and energy sector stocks.
- Miners, Anglo American (LON:AAL), Antofagasta (LON:ANTO), Rio Tinto (LON:RIO) and Glencore (JO:GLNJ) advanced 3.2%, 2.6%, 2.2% and 1.6%, respectively.
- Energy companies, Shell (LON:RDSa) and BP (LON:BP) rose 1.2% and 0.5%, respectively.
- On the other hand, real estate companies, Barrat Developments (LON:BDEV), Taylor Wimpey (LON:TW), Persimmon (LON:PSN) and Berkeley Group Holdings (LON:BKGH) dropped 7.6%, 3.0%, 2.8% and 1.7%, respectively.
- Retailers, Ocado Group (LON:OCDO), Next (LON:NXT) and J Sainsbury (LON:SBRY) (OTC:JSAIY) shed 5.5%, 1.4% and 0.9%, respectively.
- Water utility companies, United Utilities Group (LON:UU) and Severn Trent (LON:SVT) fell 3.6% and 2.0%, respectively.
- Pharmaceutical companies, GSK (LON:GSK) and AstraZeneca (LON:AZN) eased 1.6% and 1.0%, respectively.
- The FTSE 100 index advanced 0.1% to close at 7,601.85.
US MARKET REVIEW
- US markets ended higher yesterday, amid drop in Treasury yields and led by gains in technology sector stocks.
- Technology companies, Intel (NASDAQ:INTC) and Cisco Systems (NASDAQ:CSCO) advanced 1.7% and 1.3%, respectively.
- Financial services companies, JPMorgan Chase (NYSE:JPM), Goldman Sachs Group (NYSE:GS) and Visa (NYSE:V) gained 1.2%, 1.0% and 0.9%, respectively.
- Memory chip company, Micron Technology (NASDAQ:MU) dropped 4.4%, after the company projected a larger than expected loss in 1Q24.
- Consultancy services company, Accenture (NYSE:ACN) shed 4.3%, after the company issued a weaker 1Q24 guidance.
- The S&P 500 index rose 0.6% to settle at 4,299.70, while the DJIA index advanced 0.3% to close at 33,666.34.
- The NASDAQ index climbed 0.8% to end the trading session at 13,201.28.
ASIA MARKET REVIEW
- Asian markets are trading mixed this morning.
- In Japan, automobile company, Mazda Motor (TYO:7261) Corporation has shed 4.1%.
- On the flipside, electronics company, Renesas Electronics (TYO:6723) has gained 2.7%.
- In Hong Kong, internet technology company, NetEase (NASDAQ:NTES) has advanced 5.2%.
- On the other hand, pharmaceutical company, Sino Biopharmaceutical (HK:1177) has eased 0.7%.
- In South Korea, markets are closed today for a public holiday.
- On Wednesday, the Kospi index rose 0.1% to close at 2,465.07.
- Today, the Nikkei 225 index is trading 0.1% lower at 31,836.24, while the Hang Seng index has added 2.3% to trade at 17,779.59.
COMMODITIES
- At 05:30 SAST today, Brent prices rose 0.1% to trade at $95.43/bl.
- Yesterday, Brent prices fell 1.2% to settle at $95.38/bl, as higher interest rates raised oil demand concerns.
- At 05:30 SAST today, gold prices declined 0.1% to trade at $1,863.15/oz. Yesterday, gold declined 0.5% to close at $1,864.56/oz, amid concerns over higher interest rate.
- Yesterday, copper rose 0.7% to close at $8,111.90/mt. Aluminium closed 1.7% higher at $2,275.32/mt.
CURRENCIES
- Yesterday, the South African rand strengthened against the US dollar. In South Africa, the producer price index (PPI) rose in August. In the US, GDP rose in line with expectations in 2Q23. Moreover, the number of people filing for initial jobless claims fell to a seven-month low in the week ended 22 September 2023.Meanwhile, pending home sales declined more than expected in August.
- The yield on benchmark government bonds rose yesterday. The yield on 2030 bond advanced to 11.04% while that for the longer-dated 2040 issue rose to 13.14%.
- At 05:30 SAST, the US dollar is trading 0.1% lower against the South African rand at R18.9552, while the euro is trading marginally lower at R20.051. At 05:30 SAST, the British pound has declined marginally against the South African rand to trade at R23.1598.
- Yesterday, the euro mostly advanced against most of the major currencies. In Germany, inflation slowed to its lowest since the outbreak of the war in Ukraine in September. In the eurozone, the economic confidence weakened in September.
- At 05:30 SAST, the euro advanced 0.1% against the US dollar to trade at $1.058, while it has marginally weakened against the British pound to trade at GBP0.8657.
ECONOMIC UPDATES
- In South Africa, the producer price index (PPI) rose 1.0% on a MoM basis in August, more than market expectations for a rise of 0.5%. The PPI had advanced 0.2% in the previous month.
- In Italy, the consumer confidence index fell to a level of 105.40 in September, more than market expectations for a fall to a level of 105.50. The consumer confidence index had recorded a level of 106.50 in the previous month.
- In Italy, the PPI rose 0.5% on MoM basis in August, compared to a drop of 0.1% recorded in the previous month.
- In Germany, the consumer price index (CPI) advanced 0.3% on a MoM basis in September, in line with market expectations. The CPI had registered a rise of 0.3% in the prior month.
- In the eurozone, the business climate index rose to a level of -0.36 in September, compared to a level of -0.41 recorded in the previous month.
- In the eurozone, the consumer confidence index remained unchanged at -17.80 in September, in line with market expectations.
- In the eurozone, the economic sentiment index fell to a level of 93.30 in September, less than market expectations for a fall to a level of 92.50. The economic sentiment index had recorded a revised level of 93.60 in the previous month.
- In the US, initial jobless claims rose to a level of 204.00K in the week ended 22 September 2023, less than market expectations for a rise to a level of 215.00K. The number of initial jobless claims had recorded a revised level of 202.00K in the prior week.
- In the US, annualised gross domestic product (GDP) rose 2.1% in 2Q23, in line with market expectations.
- In the US, pending home sales dropped 7.1% on MoM basis in August, more than market expectations for a drop of 0.8%. Pending home sales had advanced 0.9% in the previous month.
- In Japan, the Tokyo CPI rose 2.8% on a YoY basis in September, compared to a rise of 2.9% recorded in the previous month.
- In Japan, the unemployment rate unexpectedly remained unchanged at 2.7% in August, compared to market expectations for a drop to 2.6%.
- In Japan, industrial production declined 3.8% on a YoY basis in August, compared to a drop of 2.3% recorded in the prior month.
CORPORATE UPDATES
SOUTH AFRICA
- Capitec Bank Holdings Limited (JO:CPIJ): The banking company, in its 1H24 results, indicated that interest income rose to R12.54bn from R9.93bn posted in the corresponding period of the previous year. Its diluted EPS increased 8.9% from the same period of the prior year to R40.62.
- The SPAR Group Limited (JO:SPPJ): The retail company, in its trading update from 1 October 2022 to 25 August 2023, stated that it has achieved total sales growth of 5.9% with mixed performances from the various business units. Sales from wholesale grocery business increased 8.1% as compared with the previous year. Moreover, the company intends to release its financial results for the year ending 30 September 2023 on or about 30 November 2023.
- Netcare Limited (JO:NTCJ): The pharmaceutical company, in its annual trading update, announced that it expects total paid patient days to increase approximately 6.8% as compared with the previous year. Moreover, it expects group revenue and the Hospital and emergency services segment revenue to increase by 9.0% and 10.0%, respectively, as compared with the previous year. Further, the company intends to release its FY23 results on or about 20 November 2023.
- Barloworld Limited (JO:BAWJ): The brand management company, in its trading update or the eleven months to 31 August 2023, stated that its core businesses continued to perform resiliently, despite the headwinds presented by the operating environment. Revenue from continuing operations increased 15% as compared with the previous year. This revenue increase, together with other measures, resulted in growth of 13% in EBITDA to R4.9bn and 18% in operating profit from core trading activities to R3.80bn, compared to the prior period. The company expects to release its annual financial results for the twelve months ending 30 September 2023 on or about 20 November 2023.
- Afrimat Limited (JO:AFTJ): The mining company, in its trading update or the six-month period ended 31 August 2023, stated that it expects EPS to be between 252.40c and 265.00c, as compared with 252.40c recorded in the previous year. Moreover, it expects HEPS to be between 257.20c and 269.80c, as compared with 252.20c recorded in the previous year.
- Attacq Limited (JO:ATTJ): The real estate investment trust company, in its FY23 results, reported that its gross revenue declined 3.4% from the preceding year to R2.44bn. Its diluted EPS stood at 72.50c, compared with 165.10c recorded in the previous year.
- MTN (JO:MTNJ) takes on cross border remittances with mobile money platform: MTN has armed itself with the ability to send money across borders using its mobile payments platform, MoMo, taking the fight for market share to traditional banking groups.