SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green yesterday, as investors await key US inflation data and major tech corporate results.
- Platinum miners, Impala Platinum (JO:IMPJ), Anglo American Platinum (JO:AMSJ) and Northam Platinum (JO:NPHJ) advanced 3.2%, 2.5% and 1.3%, respectively.
- Retailers, Spar Group (JO:SPPJ), Foschini Group (JO:TFGJ), Shoprite Holdings (JO:SHPJ) and Clicks Group (JO:CLSJ) gained 3.2%, 2.7%, 1.9% and 1.65, respectively.
- Diversified miners, Kumba Iron Ore (JO:KIOJ), African Rainbow Minerals (JO:ARIJ) and Anglo American (JO:AGLJ) rose 2.6%, 1.8% and 1.4%, respectively.
- Pharmaceutical companies, Adcock Ingram Holdings (JO:AIPJ), Netcare (JO:NTCJ) and Aspen Pharmacare Holdings (JO:APNJ) increased 2.5%, 1.7% and 1.0%, respectively.
- Lenders, Nedbank Group (JO:NEDJ), Standard Bank Group (JO:SBKJ) and Absa Group (JO:ABGJ) added 2.4%, 2.0% and 1.5%, respectively.
- The JSE All Share index advanced 0.7% to close at 87,643.65.
UK MARKET REVIEW
- The UK market finished firmer yesterday, boosted by gains in travel and leisure sector stocks.
- Travel and leisure companies, easyJet (LON:EZJ), International Consolidated Airlines Group S.A. (LON:ICAG) and InterContinental Hotels Group (LON:IHG) advanced 2.7%, 1.8% and 0.8%, respectively.
- Banking firms, NatWest Group (LON:NWG), HSBC Holdings (LON:HSBA) and Standard Chartered (LON:STAN) rose 1.7%, 1.5%, 1.5%, respectively.
- Retailers, Marks & Spencer Group (LON:MKS), Next (LON:NXT) and JD Sports Fashion (LON:JD) increased 1.2%, 1.1% and 0.8%, respectively.
- Tobacco companies, Imperial Brands (LON:IMB) and British American Tobacco (JO:SNHJ) added 1.2% and 0.8%, respectively.
- On the other hand, both, energy companies, BP (LON:BP) and Shell (LON:RDSa) dropped 1.4%, each, tracking lower oil prices.
- The FTSE 100 index advanced 0.4% to close at 8,285.62.
US MARKET REVIEW
- US markets ended higher yesterday, ahead of major corporate earnings.
- Financial services companies, Citigroup (NYSE:C), Goldman Sachs Group (NYSE:GS), American Express (NYSE:AXP) and JPMorgan Chase (NYSE:JPM) advanced 3.9%, 2.1%, 1.5% and 1.4%, respectively.
- Technology companies, both, Salesforce (NYSE:CRM) and Intel Corporation (NASDAQ:INTC) gained 1.1%, each.
- On the contrary, energy companies, Diamondback Energy (NASDAQ:FANG) and Devon Energy Corporation (NYSE:DVN) dropped 3.4% and 1.5%, respectively.
- Airplanes company, Boeing (NYSE:BA) declined 2.8%, after the company announced a stock offering to raise up to $22.00bn to bolster finances amid a worker strike.
- The S&P 500 index rose 0.3% to settle at 5,823.52, while the DJIA index advanced 0.6% to close at 42,387.57.
- The NASDAQ index climbed 0.3% to end the trading session at 18,567.19.
ASIA MARKET REVIEW
- Asian markets are trading mostly higher this morning, ahead of major tech corporate earnings results.
- In Japan, electronic devices company, Nitto Denko (TYO:6988) has advanced 4.3%.
- On the flipside, automobile company, Suzuki Motor Corporation (TYO:7269) has declined 1.1%.
- In Hong Kong, internet technology company, NetEase (NASDAQ:NTES) has gained 3.4%. on the other hand, real estate company, Hang Lung Properties (HK:0101) has eased 0.9%.
- In South Korea, petrochemicals company, LG Chem (KS:051915) has plunged 7.1%.
- On the contrary, electronics company, Daidong Electronics (KS:008110) has surged 16.1%.
- The Nikkei 225 index is trading 0.6% higher at 38,819.51.
- The Hang Seng index has gained 0.8% to trade at 20,760.20, while the Kospi index is trading 0.5% lower at 2,598.92.
COMMODITIES
- At 05:30 SAST today, Brent prices rose 0.2% to trade at $71.59/bl.
- Yesterday, Brent prices fell 6.1% to settle at $71.42/bl, after Israel's retaliatory strike on Iran's military targeted sites that did not affect oil and nuclear facilities.
- At 05:30 SAST today, gold prices advanced 0.3% to trade at $2,748.85/oz. Yesterday, gold declined 0.2% to close at $2,741.98/oz, as a stronger dollar and a rise in the US Treasury yields dented demand for the safe have yellow metal.
- Yesterday, copper rose 0.2% to close at $9,401.20/mt. Aluminium closed 1% lower at $2,650.85/mt.
CURRENCIES
- Yesterday, the South African rand weakened against the US dollar. In the US, the Dallas Fed manufacturing business index rose in October.
- The yield on benchmark bonds fell yesterday. The yield on the SA 10-year generic bond declined to 10.44%, while that for SA 20-year generic bond fell to 11.21%.
- At 05:30 SAST, the US dollar is trading slightly lower against the South African rand at R17.7101, while the euro is trading slightly higher at R19.1429. At 05:30 SAST, the British pound has marginally gained against the South African rand to trade at R22.9606.
- Yesterday, the euro advanced against most of the major currencies. In the UK, BRC shop price index ease for a third month in October, amid warnings of potential volatility.
- At 05:30 SAST, the euro slightly slipped against the US dollar to trade at $1.0812, while it has marginally gained against the British pound to trade at GBP0.8339.
ECONOMIC UPDATES
- In the UK, the BRC shop price index dropped 0.8% on a YoY basis in October, more than market expectations for a drop of 0.5%. The BRC shop price index had recorded a drop of 0.6% in the previous month.
- In the US, the Dallas Fed manufacturing business index rose to a level of -3.00 in October, compared to a level of -9.00 recorded in the previous month.
- In Japan, the unemployment rate fell to 2.4% in September, compared to 2.5% recorded in the prior month.
CORPORATE UPDATES
SOUTH AFRICA
- Pick ‘n Pay Stores Limited (JO:PIKJ): The retail company, in its 1H25 results, indicated that turnover rose to R56.05bn from R54.06bn posted in the corresponding period of the previous year. Its diluted loss per share rose to 140.67c, compared to 100.59c recorded in the corresponding period of the previous year.
- Gold Fields Limited (JO:GFIJ): The gold mining company announced the completion of C$1.93bn ($1.39bn) acquisition of Osisko Mining (TSX:OSK) Inc.
- PPC Limited (JO:PPCJ): The cement company, in its trading updates for the six months ended 30 September 2024, revealed that it expects EPS from continuing operations to be between 20.00c to 23.50c, higher as compared with 18.00c recorded in the prior year. Also, it expects HEPS from continuing operations to be between 20.00c to 23.50c, higher as compared with 20.00c recorded in the prior year. The improvement in EPS primarily due to an overall reduction in the group’s administration and other operating expenditure in the SA and Botswana group.
- Oil tumbles 6.0% on reduced risk of wider Middle East war: Oil prices tumbled 6.0%, or more than $4 a barrel, after retaliatory strike by Israel against Iran’s military bypassed oil and nuclear facilities, not disrupting energy supplies.