SOUTH AFRICA MARKET REVIEW
- South African markets closed in the red yesterday, as investors await monetary policy updates from major central banks due this week.
- Retailers, Cashbuild (JO:CSBJ), Pick ‘n Pay Stores (JO:PIKJ) and Spar Group (JO:SPPJ) dropped 3.7%, 2.2% and 0.9%, respectively.
- Telecommunications companies, Telkom SA SOC (JO:TKGJ), MTN Group (JO:MTNJ) and Blue Label Telecoms (JO:BLUJ) declined 3.2%, 2.0% and 1.4%, respectively.
- Lenders, Absa Group (JO:ABGJ) and Nedbank Group (JO:NEDJ) fell 3.0% and 0.9%, respectively.
- On the flipside, property developers, Hyprop Investments (JO:HYPJ), Lighthouse Properties (JO:LTEJ) and Redefine Properties (JO:RDFJ) advanced 3.3%, 1.9% and 1.5%, respectively.
- Pharmaceutical companies, Life Healthcare Group (JO:LHCJ) and Netcare (JO:NTCJ) gained 3.0% and 2.5%, respectively.
- The JSE All Share index declined 0.1% to close at 81,011.65.
UK MARKET REVIEW
- The UK market finished firmer yesterday, amid optimism surrounding rate cuts in the US and the UK.
- Pharmaceutical companies, AstraZeneca (LON:AZN) and Hikma Pharmaceuticals (LON:HIK) advanced 1.5% and 1.2%, respectively.
- Real estate companies, Barratt Developments (LON:BDEV), Persimmon (LON:PSN), Land Securities Group (LON:LAND) and Taylor Wimpey (LON:TW) gained 1.5%, 1.3%, 1.0% and 0.5%, respectively.
- Water utilities companies, Severn Trent (LON:SVT) and United Utilities Group (LON:UU) added 1.2% and 1.1%, respectively.
- On the other hand, consumer goods company, Reckitt Benckiser (LON:PSN) plunged 8.8%, hitting its lowest in over 11 years, after a US jury found Abbott Laboratories' (NYSE:ABT) premature infant formula caused a baby to develop a dangerous bowel disease.
- The FTSE 100 index advanced 0.1% to close at 8,292.35.
US MARKET REVIEW
- US markets ended mostly higher yesterday, ahead of a series of US corporate earnings results as well as US Federal Reserve policy decision.
- Fast-food restaurant chain company, McDonald’s Corporation (NYSE:MCD) advanced 3.7%.
- Meanwhile, the company reported an unexpected drop in quarterly global sales as budget-conscious customers chose cheaper meals at home.
- On the contrary, airlines companies, Southwest Airlines (NYSE:LUV), Delta Airlines (NYSE:DAL) and American Airlines Group (NASDAQ:AAL) dropped 3.4%, 2.2% and 1.8%, respectively.
- Technology companies, Intel Corporation (NASDAQ:INTC) and Salesforce (NYSE:CRM) declined 1.7% and 1.6%, respectively.
- The S&P 500 index rose 0.1% to settle at 5,463.54, while the DJIA index declined 0.1% to close at 40,539.93.
- The NASDAQ index climbed 0.1% to end the trading session at 17,370.20.
ASIA MARKET REVIEW
- Asian markets are trading lower this morning, ahead of major central banks interest rate decisions.
- In Japan, chemical company, Shin-Etsu Chemical (TYO:4063) has dropped 2.9%.
- On the flipside, automobile company, Yamaha Motor (TYO:7272) has advanced 1.1%.
- In Hong Kong, pharmaceutical company, Sinopharm Group (HK:1099) has shed 3.1%.
- On the other hand, logistics company, Orient Overseas (HK:0316) (International) has added 1.0%.
- In South Korea, cosmetic company, Hankook Cosmetics (KS:003350) Manufacturing has plunged 6.7%.
- On the contrary, pharmaceutical company, Hyundai Pharmaceutical (KS:004310) has surged 7.7%.
- The Nikkei 225 index is trading 1.0% lower at 38,101.24.
- The Hang Seng index has declined 1.1% to trade at 17,042.88, while the Kospi index is trading 1.1% lower at 2,734.40.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 0.4% to trade at $79.47/bl, amid softening crude oil demand.
- Yesterday, Brent prices fell 1.7% to settle at $79.78/bl, as Israeli officials aimed to avoid escalating the conflict in the Middle East following a deadly rocket strike.
- At 05:30 SAST today, gold prices advanced 0.1% to trade at $2,383.90/oz. Yesterday, gold declined 0.2% to close at $2,381.24/oz, amid rising geopolitical tensons in the Middles East.
- Yesterday, copper declined 1.0% to close at $8,905.25/mt. Aluminium closed 1.3% lower at $2,250.50/mt.
CURRENCIES
- Yesterday, the South African rand weakened against the US dollar. In the US, the Dallas Fed manufacturing business index fell in July.
- The yield on benchmark government bonds rose yesterday. The yield on the 2030 bond advanced to 9.46%, while that for the longer-dated 2040 issue rose to 11.54%.
- At 05:30 SAST, the US dollar is trading 0.1% higher against the South African rand at R18.4587, while the euro is trading 0.1% higher at R19.9715. At 05:30 SAST, the British pound has marginally gained against the South African rand to trade at R23.7247.
- Yesterday, the euro mostly declined against most of the major currencies.
- At 05:30 SAST, the euro slightly slipped against the US dollar to trade at $1.0818, while it has marginally gained against the British pound to trade at GBP0.8419.
ECONOMIC UPDATES
- In the US, the Dallas Fed manufacturing business index fell to a level of -17.50 in July, compared to a level of -15.10 recorded in the previous month.
- In Japan, the unemployment rate unexpectedly declined to 2.5% in June, compared to 2.6% recorded in the prior month.
- In Australia, building permits dropped 6.5% on a MoM basis in June, more than market expectations for a drop of 3.0%. Building permits had recorded a revised rise of 5.7% in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- Pan African Resources Limited (JO:PANJ): The mining company, in its FY24 operational update, revealed that gold production increased by 6.2% to 186,039oz. Meanwhile a delay in commissioning the ventilation shaft for hoisting at Evander 8 underground operations adversely impacted production in the last two months of the reporting period, resulting in the group not achieving the higher end of production guidance and also negatively impacted unit costs. Further, exceptional progress has been made with the MTR Project’s construction, which is nearing its final stages. Plant commissioning and first gold production is anticipated ahead of schedule in October 2024, with steady state production expected during December 2024. Furthermore, the project is expected to be completed below budget.
- PPC (JO:PPCJ) warns against use of subpar cement in construction: PPC has warned about the dangers of using subpar cement in construction projects, saying the risk has increased amid the recent entry of many new competitors, especially in the blending space.