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Market Review, Commodities, Currencies, Economic & Corporate Update - 30.05.24

Published 2024/05/30, 08:04
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SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the red on Tuesday, led by losses in mining sector stocks.
  • Platinum miners, Anglo American Platinum (JO:AMSJ), Impala Platinum (JO:IMPJ) and Northam Platinum (JO:NPHJ) dropped 7.3%, 3.9% and 3.2%, respectively.
  • Food companies, Tiger Brands (JO:TBSJ), Famous Brands (JO:FBRJ), Astral Foods (JO:ARLJ) and RCL Foods (JO:RCLJ) declined 2.8%, 1.4%, 1.3% and 0.9%, respectively.
  • On the flipside, real estate companies, Emira Property Fund (JO:EMIJ), Shaftesbury Capital (JO:SHCJ), Burstone Group (JO:BTNJ) and Hammerson (LON:HMSO) advanced 5.0%, 4.4%, 1.9% and 1.1%, respectively.
  • Retailers, Spar Group (JO:SPPJ), Shoprite Holdings (JO:SHPJ) and Foschini Group (JO:TFGJ) gained 2.5%, 1.0% and 0.9%, respectively.
  • The JSE All Share index declined 0.4% to close at 78,576.14.

UK MARKET REVIEW

  • The UK market finished weaker for a sixth consecutive session yesterday, led by losses in mining sector stocks and on rate cut worries.
  • Miner, Anglo American (LON:AAL) dropped 3.1%, after the company declined BHP Group (JO:BHPJ)'s latest takeover offer, prompting BHP to abandon its $49.00bn acquisition attempt. Peers, Rio Tinto (LON:RIO), Antofagasta (LON:ANTO) and Glencore (JO:GLNJ) shed 2.0%, 1.8% and 1.2%, respectively.
  • Real estate companies, Barratt Developments (LON:BDEV), Berkeley Group Holdings (LON:BKGH) and Land Securities Group (LON:LAND) declined 2.3%, 1.2% and 1.1%, respectively.
  • Banking companies, Barclays (LON:BARC), Lloyds Banking Group (LON:LLOY) and Standard Chartered (LON:STAN) fell 2.3%, 1.5% and 0.5%, respectively.
  • Insurance companies, Prudential (LON:PRU) and Legal & General Group (LON:LGEN) decreased 2.1% and 1.6%, respectively.
  • The FTSE 100 index declined 0.9% to close at 8,183.07.

US MARKET REVIEW

  • US markets ended lower yesterday, amid ongoing concerns over the timing and scale of possible interest rate cuts.
  • Airlines company, American Airlines Group (NASDAQ:AAL) plunged 13.5%, after the company trimmed its profit forecast for 2Q24.
  • Technology companies, Intel (NASDAQ:INTC) and International Business Machines (NYSE:IBM) dropped 3.0% and 1.5%, respectively.
  • On the contrary, energy company, Marathon Oil Corporation (NYSE:MRO) surged 8.4%, after ConocoPhillips (NYSE:COP) agreed to acquire the company in $22.50bn deal.
  • The S&P 500 index fell 0.7% to settle at 5,266.95, while the DJIA index declined 1.1% to close at 38,441.54.
  • The NASDAQ index eased 0.6% to end the trading session at 16,920.58.

ASIA MARKET REVIEW

  • Asian markets are trading lower this morning, tracking overnight losses on Wall Street.
  • In Japan, chemical company, Nissan Chemical (TYO:4021) has dropped 3.9%.
  • On the flipside, banking company, Chiba Bank (TYO:8331) has gained 1.3%.
  • In Hong Kong, real estate company, Hang Lung Properties (HK:0101) has shed 2.0%.
  • On the other hand, pharmaceutical company, CSPC Pharmaceutical (HK:1093) has gained 2.1%.
  • In South Korea, online games company, Netmarble Corporation (KS:251270) has plunged 9.1%.
  • On the contrary, banking company, Jeju Bank (KS:006220) has surged 8.8%.
  • The Nikkei 225 index is trading 1.5% lower at 37,974.47.
  • The Hang Seng index has dropped 0.9% to trade at 18,309.19, while the Kospi index is trading 1.1% lower at 2,647.11.

COMMODITIES

  • At 05:30 SAST today, Brent prices marginally fell to trade at $83.56/bl.
  • Yesterday, Brent prices fell 0.7% to settle at $83.6/bl, amid concerns over weaker US crude oil demand and economic data suggesting the US Federal Reserve might maintain higher interest rates for an extended period. Additionally, the US Energy Information Administration (EIA) reported that the US crude inventories fell by 6.49mn bls in the week ended 24 May 2024.
  • At 05:30 SAST today, gold prices declined 0.3% to trade at $2,332.56/oz. Yesterday, gold declined 1.0% to close at $2,338.48/oz, as a stronger dollar and a rise in the US Treasury yields dented demand for the safe haven yellow metal.
  • Yesterday, copper declined 0.8% to close at $10,293.00/mt. Aluminium closed 1.5% higher at $2,767.50/mt.

CURRENCIES

  • Yesterday, the South African rand weakened against the US dollar. In the US, the number of MBA mortgage applications declined in the week ended 24 May 2024. Meanwhile, the Richmond Fed manufacturing index rose more than expected in May.
  • The yield on benchmark government bonds were mixed on Tuesday. The yield on the 2030 bond were unchanged at 10.55%, while that for the longer-dated 2040 issue fell to 12.66%.
  • At 05:30 SAST, the US dollar is trading 0.1% higher against the South African rand at R18.4692, while the euro is trading 0.1% higher at R19.9384. At 05:30 SAST, the British pound has slightly declined against the South African rand to trade at R23.4397.
  • Yesterday, the euro mostly declined against most of the major currencies. In Germany, the consumer price index (CPI) accelerated in May.
  • At 05:30 SAST, the euro slightly slipped against the US dollar to trade at $1.0798, while it has marginally gained against the British pound to trade at GBP0.8507.

ECONOMIC UPDATES

  • In Italy, the business confidence index rose to a level of 88.40 in May, more than market expectations for a rise to level of 88.10. The Business confidence index had recorded a level of 87.60 in the prior month.
  • In Italy, the consumer confidence index climbed to level of 96.40 in May, more than market expectations and compared to a level of 95.20 in the prior month.
  • In France, the consumer confidence index unexpectedly remained unchanged at a level of 90.00 in May.
  • In Germany, the consumer price index (CPI) rose 0.1% on a MoM basis in May, less than market expectations for a rise of 0.2%. The CPI had recorded a rise of 0.5% in the prior month.
  • In Germany, the GfK consumer confidence index advanced to a level of -20.90 in June, more than market expectations and compared to a revised level of -24.00 recorded in the previous month.
  • In the US, the MBA mortgage applications dropped 5.7% in the week ended 24 May 2024, compared to a rise of 1.9% recorded in the previous week.
  • In the US, the Richmond Fed manufacturing index remained flat in May. Market expectations were for a rise to a level of -2.00. The Richmond Fed manufacturing index had recorded a level of -7.00 in the previous month.
  • In New Zealand, building permits dropped 1.9% on a MoM basis in April, compared to a drop of 0.2% recorded in the prior month.

CORPORATE UPDATES

SOUTH AFRICA

  • Pepkor Holdings Limited (JO:PPHJ): The investment holding company, in its 1H24 results, reported that revenues rose to R43.26bn from R39.53bn posted in the corresponding period of the previous year. Its diluted EPS decreased 16.6% from the same period of the prior year to 66.60c.
  • Reinet Investments S.C.A. (JO:RNIJ): The company, in its FY24 results, reported that total income advanced to EUR212.00mn compared with EUR164.00mn posted in the previous year. Net asset value advanced 8.1% from the preceding year to EUR6.18bn. Its NAV per share stood at EUR34.02, compared with EUR31.46 recorded in the previous year.

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