South Africa Market Review
- South African markets closed in the green yesterday, as stronger Chinese factory data revived hopes for global economic rebound.
- Pharmaceutical company, Aspen Pharmacare (JO:APNJ) jumped 13.2%, after the company lifted its outlook for 1H23 indicating that it expects improved revenue from its commercial pharmaceuticals and manufacturing divisions.
- Diversified miners, African Rainbow Minerals (JO:ARIJ), Anglo American (JO:AMSJ) and Kumba Iron Ore (JO:KIOJ) advanced 3.9%, 2.4% and 1.1%, respectively.
- Retailers, SPAR Group (JO:SPPJ), Mr Price Group (JO:MRPJ) and Click Group (JO:CLSJ) gained 2.8%, 1.9% and 1.2%, respectively.
- Lenders, FirstRand (JO:FSRJ), Nedbank Group (JO:NEDJ) and Standard Bank Group (JO:SBKJ) added 2.0%, 1.4% and 1.2%, respectively.
- On the flipside, property developers, Capital & Counties Properties (JO:CCOJ), Emira Property Fund (JO:EMIJ) and Redefine Properties (JO:RDFJ) dropped 4.5%, 2.5% and 1.3%, respectively.
- The JSE All Share index advanced 1.2% to close at 78,631.45.
UK Market Review
- The UK market finished firmer yesterday, amid gains in commodity sector stocks.
- Engineering company, Weir Group (LON:WEIR) climbed 6.3%, after the company reported higher earnings in FY22.
- Miners, Rio Tinto (LON:RIO), Antofagasta (LON:ANTO), Glencore (LON:GLEN) and Fresnillo (LON:FRES) advanced 4.6%, 4.2%, 3.5% and 1.9%, respectively, amid higher commodity prices.
- Paper and packaging companies, Smurfit Kappa Group (LON:SKG), Mondi (LON:MNDI) and DS Smith (LON:SMDS) gained 2.7%, 2.1% and 1.5%, respectively.
- Consumer goods company, Reckitt Benckiser (LON:PSN) rose 1.5%, after the company reported better than expected FY22 results.
- On the other hand, housebuilding company, Persimmon (LON:PSN) plunged 12.1%, after the company lowered its annual profit guidance.
- The FTSE 100 index advanced 0.5% to close at 7,914.93.
US Market Review
- US markets ended mostly lower yesterday, amid rise in US Treasury yields and following hawkish comments from Fed officials raised concerns over rate hikes.
- Lowe’s Cos (NYSE:LOW) shed 5.6%, after the company’s full year sales and revenue came in below analysts’ expectations. Retail chain company, Kohl’s Corporation (NYSE:KSS) declined 1.9%, after the company posted a loss and warned of a drop in 2023 profits.
- Media and entertainment companies, Warner Bros Discovery (NASDAQ:WBD), Netflix (NASDAQ:NFLX) and Walt Disney (NYSE:DIS) dropped 3.8%, 2.7% and 1.1%, respectively.
- Technology companies, Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and International Business Machines (NYSE:IBM) eased 1.4%, 1.3% and 0.9%, respectively.
- The S&P 500 index fell 0.5% to settle at 3,951.39, while the DJIA index marginally advanced to close at 32,661.84.
- The NASDAQ index eased 0.7% to end the trading session at 11,379.48.
Asia Market Review
- Asian markets are trading mostly lower this morning, tracking overnight losses on Wall Street. In Japan, banking company, Chiba Bank (TYO:8331) has dropped 3.0%.
- On the flipside, consumer electronics company, Panasonic Holdings Corporation (TYO:6752) has advanced 1.7%.
- In Hong Kong, e-commerce company, Alibaba Group Holding (NYSE:BABA) had shed 4.1%.
- On the other hand, pharmaceutical company, CSPC Pharmaceutical (HK:1093) has gained 1.5%.
- In South Korea, chemical company, Cosmo Chemical (KS:005420) has jumped 15.1%.
- On the contrary, automotive parts company, Central Motek (KS:308170) has declined 3.8%.
- The Nikkei 225 index is trading 0.1% lower at 27,490.79.
- The Hang Seng index has declined 0.6% to trade at 20,501.77, while the Kospi index is trading 0.9% higher at 2,435.00.
Commodities
- At 06:00 SAST today, Brent spot prices fell 0.2% to trade at $84.14/bl, reversing previous session gains.
- Yesterday, Brent spot prices rose 2.2% to settle at $84.3/bl, amid hopes for a rebound in Chinese demand. Meanwhile, the US Energy Information Administration (EIA) reported that the US crude inventories advanced by 1.17mn bls in the week ended 24 February 2023.
- Yesterday, the Illinois North Central No.2 Yellow corn spot prices marginally fell to $6.55875/bushel.
- At 06:00 SAST today, gold prices declined 0.2% to trade at $1,833.45/oz. Yesterday, gold gained 0.5% to close at $1,836.72/oz, as a weaker dollar boosted demand for the safe haven yellow metal.
- Yesterday, copper rose 1.5% to close at $9,084.00/mt. Aluminium closed 2.5% higher at $2,385.02/mt.
Currencies
- Yesterday, the South African rand strengthened against the US dollar. In South Africa, manufacturing activity deteriorated in February amid persistent power shortages. Separately, in the US, the ISM manufacturing PMI rose less than expected in February. Meanwhile, the S&P Global manufacturing PMI contracted in February.
- The yield on benchmark government bonds were mixed yesterday. The yield on 2026 bond fell to 8.55%. Further, the yield on the longer-dated 2030 issue rose to 10.10%.
- At 06:00 SAST, the US dollar is trading 0.4% higher against the South African rand at R18.188, while the euro is trading 0.1% higher at R19.3612. At 06:00 SAST, the British pound has gained 0.2% against the South African rand to trade at R21.8314.
- Yesterday, the euro mostly advanced against most of the major currencies. In Germany, the consumer price index (CPI) rose more than expected in February. In the eurozone, the manufacturing PMI contracted in February. In the UK, manufacturing PMI rose more than expected in February, amid rise in output.
- At 06:00 SAST, the euro slipped 0.2% against the US dollar to trade at $1.0646, while it has marginally weakened against the British pound to trade at GBP0.8868.
Economic Updates
- In South Africa, the manufacturing PMI registered a drop to a level of 48.80 in February, compared to a level of 53.00 recorded in the previous month.
- In the UK, seasonally adjusted house prices dropped 0.5% on a MoM basis in February, more than the market expectations for a drop of 0.4%. In the prior month, house prices had declined 0.6%.
- In the UK, the S&P Global manufacturing PMI rose to a level of 49.30 in February, more than market expectations for a rise to a level of 49.20. The manufacturing PMI had recorded a level of 47.00 in the prior month.
- In Switzerland, the SVME manufacturing PMI eased to a level of 48.90 in February, compared to a level of 49.30 recorded in the prior month.
- In Spain, the manufacturing PMI registered a rise to a level of 50.70 in February, more than market expectations for a rise to a level of 49.10. The manufacturing PMI had recorded a level of 48.40 in the prior month.
- In Italy, the manufacturing PMI advanced to a level of 52.00 in February, more than market expectations for an advance to a level of 51.00. In the previous month, the manufacturing PMI had recorded a level of 50.40.
- In France, the manufacturing PMI dropped more-than-expected to a level of 47.40 in February. In the previous month, the manufacturing PMI had recorded a level of 50.50.
- In Germany, the final manufacturing PMI declined to 46.30 in February, more than market expectations and compared to a level of 47.30 in the prior month.
- In Germany, the seasonally adjusted unemployment rate remained unchanged at 5.5% in February, in line with market expectations.
- In Germany, the consumer price index (CPI) rose 0.8% on a MoM basis in February, more than market expectations for a rise of 0.6%. In the previous month, the CPI had recorded a rise of 1.0%.
- In the eurozone, the final manufacturing PMI dropped to a level of 48.50 in February, in line with market expectations. In the previous month, the manufacturing PMI had recorded a reading of 48.80.
- In the US, the S&P Global manufacturing PMI rose to a level of 47.30 in February, less than market expectations for a rise to a level of 47.80. The manufacturing PMI had recorded a level of 46.90 in the previous month.
- In the US, the ISM manufacturing PMI rose to a level of 47.70 in February, less than market expectations for a rise to a level of 48.00. The manufacturing PMI had recorded a level of 47.40 in the previous month.
- In the US, the MBA mortgage applications dropped 5.7% on a weekly basis in the week ended 24 February 2023, compared to a drop of 13.3% recorded in the previous month.
- In Canada, the S&P Global manufacturing PMI unexpectedly rose to a level of 52.40 in February, compared to a level of 51.00 in the previous month.
Corporate Updates
South Africa
- MTN Group Limited (JO:MTNJ): The telecommunications company, in its FY22 trading update, revealed that it expects EPS to be 35.0% and 45.0%, higher as compared with R7.63 recorded in the previous year. Moreover, it expects HEPS to be 12.0% and 22.0%, higher as compared to R9.87 recorded in the previous year. Further, the company intends to release its annual results on or about 13 March 2023.
- Sanlam Limited (JO:SLMJ): The company announced the completion of the acquisition of 100% of Alexforbes’ individual client administration business (Alexander Forbes Individual Client Administration Proprietary Limited and its two wholly owned subsidiaries Alexander Forbes Retail Client Administration Proprietary Limited and Alexander Forbes Nominees Proprietary Limited) from Alexander Forbes Limited, a subsidiary of Alexander Forbes Group Holdings (JO:AFHJ) Limited.
- Woolworths Holdings Limited (JO:WHLJ): The retail company, in its 1H23 results, reported that its revenue advanced 12.1% from the same period of the preceding year to R35.86bn. Its diluted EPS stood at 289.30c, compared with 165.50c recorded in the corresponding period of the previous year.
- Aspen Pharmacare Holdings Limited (JO:APNJ): The pharmaceutical company, in its 1H23 results, reported that its revenue declined 1.2% from the same period of the preceding year to R19.15bn. Its basic and diluted EPS stood at 602.00c, compared with 736.00c recorded in the corresponding period of the previous year.
- Harmony Gold Mining Company Limited (JO:HARJ): The gold mining company, in its 1H23 results, indicated that its revenue rose to R23.26bn from R21.95bn posted in the corresponding period of the previous year. Its diluted EPS increased 32.0% from the same period of the prior year to R2.97.
- AECI Limited (JO:AFEJ): The chemicals company, in its FY22 results, revealed that its revenue rose 36.6% from the preceding year to R35.58bn. Its diluted EPS stood at R8.74, compared with R11.12 recorded in the corresponding previous year.
- Cashbuild Limited (JO:CSBJ): The retail company, in its 1H23 results, stated that its revenue decreased to R5.65bn from R5.89bn posted in the corresponding period of the previous year. Its diluted EPS fell 49.6% from the same period of the prior year to R6.51.
- Caxton and CTP Publishers and Printers Limited (JO:CATJ): The publishing company, in its 1H23 trading update, revealed that it expects EPS to be 62.8% and 70.6%, higher as compared with 63.90c recorded in the corresponding period of the previous year. Moreover, it expects HEPS to be 32.3% and 39.8%, higher as compared with 66.50c recorded in the same period of the previous year.
- Murray & Roberts Holdings Limited (JO:MURJ): The engineering and mining company, in its 1H23 results, revealed that its revenue rose 40.7% from the same period of the preceding year to R5.90bn. Diluted loss per share stood at 627.00c, compared with an EPS of 14.00c recorded in the corresponding period of the previous year.
- Oil rises on strong Chinese manufacturing, despite US stockpile concerns: Oil prices extended gains for a second session after a strong jump in manufacturing in China, the world’s top crude importer, boosted the outlook for global fuel demand.