SOUTH AFRICA MARKET REVIEW
- South African markets closed in the green yesterday, ahead of medium-term budget policy statement (MTBPS) due this week.
- Retailers, Cashbuild (JO:CSBJ), Clicks Group (JO:CLSJ), Mr Price Group (JO:MRPJ) and Cie Financiere Richemont S.A. (JO:CFRJ) jumped 4.7%, 3.2%, 1.5% and 1.0%, respectively.
- Property developers, Growthpoint Properties (JO:GRTJ), Hammerson (JO:HMNJ) and Emira Property Fund (JO:EMIJ) advanced 2.4%, 2.0% and 1.2%, respectively.
- Lenders, FirstRand (JO:FSRJ) and Standard Bank Group (JO:SBKJ) gained 2.1% and 0.8%, respectively.
- Insurance companies, Sanlam (JO:SLMJ), Old Mutual (JO:OMUJ) and Discovery Group (OTC:CGLD) rose 1.7%, 1.1% and 0.8%, respectively.
- Food companies, Tiger Brands (JO:TBSJ) and Astral Foods (JO:ARLJ) added 1.5% and 1.0%, respectively.
- On the flipside, telecommunications companies, MTN (JO:MTNJ) and Telkom SA SOC (JO:TKGJ) dropped 6.7% and 5.6%, respectively.
- The JSE All Share index advanced 0.6% to close at 69,871.16.
UK MARKET REVIEW
- The UK market finished firmer yesterday, as investors await the Bank of England's (BoE) monetary policy meeting for further cues on interest rate.
- Education and publishing company, Pearson (LON:PSON) advanced 2.9%, after the company raised its annual adjusted operating profit guidance citing a surge in demand for its assessments and qualifications.
- Pharmaceutical company, GSK (LON:GSK) rose 1.3%, after the company reported that its cancer drug Jemperli, when combined with chemotherapy, met overall survival goal in late-stage trial.
- On the other hand, banking firm, HSBC Holdings (LON:HSBA) declined 2.3%, after the company reported lower than expected profit in 3Q23.
- The FTSE 100 index advanced 0.5% to close at 7,327.29.
US MARKET REVIEW
- US markets ended higher yesterday, ahead of the US Federal Reserve’s (Fed) two-day monetary policy meeting.
- Digital storage company, Western Digital Corporation (NASDAQ:WDC) jumped 7.3%, after the company disclosed plans to separate itself into two independent public companies.
- Restaurant company, McDonald’s (NYSE:MCD) advanced 1.7%, after the company reported better than expected results in 3Q23, driven by rise in demand.
- On the contrary, semiconductor company, ON Semiconductor (NASDAQ:ON) plunged 21.8%, after the company projected lower revenues for 4Q23 amid slowing demand for electric vehicles.
- The S&P 500 index rose 1.2% to settle at 4,166.82, while the DJIA index advanced 1.6% to close at 32,928.96.
- The NASDAQ index climbed 1.2% to end the trading session at 12,789.48.
ASIA MARKET REVIEW
- Asian markets are trading lower this morning, amid drop in China’s manufacturing PMI in October.
- Meanwhile, the Bank of Japan kept its short-term lending rate unchanged and allowed more flexibility on its yield curve.
- In Japan, consumer electronics company, Panasonic Holdings (TYO:6752) has shed 8.5%.
- On the flipside, pharmaceutical company, Sumitomo Pharma (TYO:4506) has advanced 4.0%.
- In Hong Kong, real estate company, Longfor Group Holdings (HK:0960) has dropped 3.3%.
- On the other hand, internet technology company, NetEase (NASDAQ:NTES) has added 0.8%.
- In South Korea, engineering company, Charm Engineering (KS:009310) has edged down 8.9%.
- On the contrary, information integrated systems company, Asiana IDT (KS:267850) has jumped 8.4%.
- The Nikkei 225 index is trading 0.2% lower at 30,649.44.
- The Hang Seng index has fell 1.7% to trade at 17,114.43, while the Kospi index is trading 1.2% lower at 2,282.95.
COMMODITIES
- At 05:30 SAST today, Brent prices rose 0.4% to trade at $87.81/bl, amid rising Middle East concerns.
- Yesterday, Brent prices fell 3.3% to settle at $87.45/bl, amid easing supply concerns.
- At 05:30 SAST today, gold prices declined 0.1% to trade at $1,993.87/oz. Yesterday, gold declined 0.5% to close at $1,995.88/oz.
- Yesterday, copper rose 1.8% to close at $8,109.65/mt. Aluminium closed 2.1% higher at $2,266.35/mt.
CURRENCIES
- Yesterday, the South African rand weakened against the US dollar. In the US, the Dallas Fed manufacturing business index declined in October.
- The yield on benchmark government bonds rose yesterday. The yield on the 2030 bond advanced to 10.71% while that for the longer-dated 2040 issue rose to 12.84%.
- At 05:30 SAST, the US dollar is trading 0.3% higher against the South African rand at R18.9074, while the euro is trading 0.1% higher at R20.0352. At 05:30 SAST, the British pound has marginally gained against the South African rand to trade at R22.9551.
- Yesterday, the euro advanced against most of the major currencies. In Germany, gross domestic product (GDP) dropped less than expected in 3Q23. Moreover, consumer price inflation declined to its lowest in two years in October. In the eurozone, the economic sentiment index dropped to a near three-year low in October.
- At 05:30 SAST, the euro slipped 0.2% against the US dollar to trade at $1.0595, while it has marginally gained against the British pound to trade at GBP0.8728.
ECONOMIC UPDATES
- In the UK, the BRC Shop Price Index rose 5.2% on a YoY basis in September, compared to a rise of 6.2% recorded in the previous month.
- In Switzerland, the KOF leading indicator fell to a level of 95.80 in October, compared to a level of 95.90 recorded in the previous month.
- In Spain, the consumer price index (CPI) 0.3% on a MoM basis in October, less than market expectations and compared to a rise of 0.2% recorded in the prior month.
- In Germany, GDP dropped 0.1% on a QoQ basis in 3Q23, less than market expectations for a drop of 0.3%.
- In Germany, the consumer price index (CPI) recorded a flat reading on a MoM basis in October, compared to market expectations for a rise of 0.2%. The CPI had recorded a rise of 0.3% in the previous month.
- In the eurozone, the business climate index rose to a level of -0.33 in October, compared to a revised level of -0.35 recorded in the previous month.
- In the eurozone, the consumer confidence index dropped to a level of -17.90 in October, compared to a level of -17.80 recorded in the previous month.
- In the eurozone, the economic sentiment indicator declined to a level of 93.30 in October, in line with expectations. The economic sentiment indicator had recorded a revised level of 93.40 in the previous month.
- In the US, the Dallas Fed manufacturing business index fell to a level of -19.20 in October, compared to a level of -18.10 recorded in the previous month.
- In Japan, the unemployment rate fell to 2.6% in September, compared to 2.7% recorded in the previous month.
- In Japan, industrial production dropped 4.6% on a YoY basis in September, compared to a drop of 4.4% recorded in the prior month.
- In China, the NBS manufacturing PMI fell to a level of 49.50 in September, compared a level of 50.20 recorded in the previous month. Markets were expecting the NBS manufacturing PMI to remained unchanged at a level of 50.20.
- In New Zealand, the ANZ Business Confidence index rose to a level of 23.40 in October, compared to a level of 1.50 recorded in the prior month.
CORPORATE UPDATES
SOUTH AFRICA
- Adcorp Holdings Limited (JO:ADRJ): The workforce solutions company, in its 1H24 results, indicated that revenues rose to R6.46bn from R5.86bn posted in the corresponding period of the previous year. Its diluted EPS increased 33.6% from the same period of the prior year to 31.80c.
- MTN (JO:MTNJ) poised to disrupt remittance market, says Fitch: Fitch Solutions — a unit of Fitch Group — says MTN is well positioned to disrupt SA’s remittance market through its fintech platform MoMo.