South Africa Market Review
- South African markets closed in the green yesterday, buoyed by gains in mining sector stocks.
- Platinum miners, Anglo American Platinum (JO:AMSJ), Northam Platinum (JO:NHMJ) and Impala Platinum (JO:IMPJ) surged 14.6%, 10.4% and 9.6%, respectively.
- Gold miners, Gold Fields (JO:GFIJ) and AngloGold Ashanti (JO:ANGJ) gained 3.3% and 1.2%, respectively.
- On the flipside, lender, Capitec Bank Holdings (JO:CPIJ) dropped 4.5%, after the company announced that the total net credit impairment charges on gross loans and advances jumped to R6.33bn in FY22.
- Peers, FirstRand (JO:FSRJ), Nedbank Group (JO:NEDJ) and Standard Bank Group (JO:SBKJ) dropped 2.1%, 1.8% and 1.0%, respectively.
- Retailers, Mr Price Group (JO:MRPJ), SPAR Group (JO:SPPJ) and Clicks Group (JO:CLSJ) declined 2.3%, 2.1% and 1.7%, respectively.
- The JSE All Share index advanced 0.7% to close at 79,294.76.
UK Market Review
- The UK market finished firmer yesterday, boosted by gains in mining sector stocks following upbeat Chinese economic data.
- Gaming and entertainment company, Entain (LON:ENT) jumped 7.2%, after the company reported a 15% rise in its 1Q23 net gaming revenue.
- Miners, Fresnillo (LON:FRES), Antofagasta (LON:ANTO) and Rio Tinto (LON:RIO) climbed 3.2%, 1.8% and 1.0%, respectively, amid stronger Chinese economic data.
- Pharmaceutical company, AstraZeneca (LON:AZN) advanced 1.8%, after the company showed confidence that its new version of COVID antibody treatment could protect immunocompromised patients against all known virus variants.
- Retailers, Ocado Group (LON:OCDO), Next (LON:NXT) and Burberry Group (LON:BRBY) added 1.8%, 1.3% and 1.0%, respectively.
- The FTSE 100 index advanced 0.4% to close at 7,909.44.
US Market Review
- US markets ended mostly lower yesterday, following weak US corporate earnings data.
- Healthcare company, Johnson & Johnson (NYSE:JNJ) dropped 2.8%, after the company lowered its sales outlook for its pharmaceutical business.
- Financial services company, Goldman Sachs Group (NYSE:GS) declined 1.7%, after the company reported a 19% drop in its 1Q23 profit.
- On the contrary, Homebuilding companies, PulteGroup (NYSE:PHM), Lennar Corporation (NYSE:LEN) and D.R. Horton (NYSE:DHI) climbed 3.3%, 3.0% and 2.7%, respectively.
- Aerospace company, Lockheed Martin Corporation (NYSE:LMT) advanced 2.4%, after the company reported better than expected earnings and sales in 1Q23.
- The S&P 500 index rose 0.1% to settle at 4,154.87, while the DJIA index marginally declined to close at 33,976.63.
- The NASDAQ index marginally eased to end the trading session at 12,153.41.
Asia Market Review
- Asian markets are trading lower this morning.
- In Japan, paper company, Nippon Paper Industries (TYO:3863) has declined 1.9%.
- On the flipside, life insurance company, Dai-ichi Life Holdings (TYO:8750) has gained 1.3%.
- In Hong Kong, real estate company, Hang Lung Properties (HK:0101) has dropped 2.7%.
- On the other hand, gaming and entertainment company, Galaxy Entertainment Group (HK:0027) has advanced 3.3%.
- In South Korea, chemicals company, Hannong Chemicals (KS:011500) has declined 4.4%.
- On the contrary, technology company, LG Electronics (KS:066570) has added 1.0%.
- The Nikkei 225 index is trading 0.3% lower at 28,573.92.
- The Hang Seng index has declined 0.6% to trade at 20,528.32, while the Kospi index is trading 0.3% higher at 2,577.99.
Commodities
- At 05:30 SAST today, Brent spot prices fell 0.4% to trade at $84.67/bl.
- Yesterday, Brent spot prices fell 0.7% to settle at $85.00/bl. Meanwhile, the American Petroleum Institute (API) reported that crude oil inventories declined by 2.68mn bls in the week ended 14 April 2023.
- Yesterday, the Illinois North Central No.2 Yellow corn spot prices fell 2.7% to $6.78/bushel.
- At 05:30 SAST today, gold prices declined 0.1% to trade at $2,003.63/oz. Yesterday, gold gained 0.5% to close at $2,004.93/oz, as a weak dollar and a drop in the US Treasury yields boosted demand for the safe haven yellow metal.
- Yesterday, copper rose 0.5% to close at $9,004.25/mt. Aluminium closed 3.0% higher at $2,437.00/mt.
Currencies
- Yesterday, the South African rand strengthened against the US dollar. In South Africa, the business confidence index dropped in March, amid persistent energy crisis and higher interest rates. In the US, both, building permits and housing starts declined in March.
- The yield on benchmark government bonds fell yesterday. The yield on 2026 bond rose to 8.72%. Further, the yield on the longer-dated 2030 issue rose to 10.05%.
- At 05:30 SAST, the US dollar is trading 0.8% higher against the South African rand at R18.302, while the euro is trading 0.4% higher at R20.0198. At 05:30 SAST, the British pound has gained 0.5% against the South African rand to trade at R22.6714.
- Yesterday, the euro advanced/declined against most of the major currencies. In Germany, the ZEW economic sentiment unexpectedly declined in April. Meanwhile, the ZEW current situation index improved in April. In the eurozone, the ZEW economic sentiment unexpectedly dropped in April.
- At 05:30 SAST, the euro slipped 0.3% against the US dollar to trade at $1.0938, while it has marginally gained against the British pound to trade at GBP0.8831.
Economic Updates
- In South Africa, the business confidence index dropped to a level of 111.30 in March, compared to a level of 111.90 recorded in the previous month.
- In the UK, the claimant count rate rose 3.9% in March, compared to a rise of 3.8% recorded in the previous month.
- In the UK, the ILO unemployment rate rose to 3.8% in February, compared to a rise of 3.7% recorded in the previous month.
- In Italy, trade balance recorded a surplus of EUR2.11bn in February, compared to a revised deficit of EUR4.24bn recorded in the previous month.
- In Germany, the ZEW current sentiment index rose to a level of -32.50 in April, more than market expectations and compared to a level of -46.50 recorded in the previous month.
- In Germany, the ZEW economic sentiment index unexpectedly dropped to a level of 4.10 in April, compared to market expectations for a rise to a level of 15.10. The ZEW economic sentiment index had recorded a level of 13.00 in the previous month.
- In the eurozone, the ZEW economic sentiment index unexpectedly dropped to a level of 6.40 in April, compared to a level of 10.00 recorded in the previous month.
- In the US, building permits unexpectedly declined 8.8% on a MoM basis in March, compared to market expectations for a rise of 1.45%. In the previous month, building permits had recorded a revised rise of 15.8%.
- In the US, housing starts unexpectedly dropped 0.8% on a MoM basis in March, compared to a revised rise of 7.3% recorded in the prior month.
- In Canada, the consumer price index (CPI) rose 0.5% in on a MoM basis in March, in line with market expectations. The CPI had recorded a rise of 0.4% in the previous month.
Corporate Updates
South Africa
- Former Tongaat CFO fined R6.00m, barred for 10 years from boards: Former Tongaat Hullet CFO Murray Munro cannot escape taking responsibility for the accounting fraud that took place under his watch which brought the company to its knees, an investigation by the JSE has found.
- Exxaro (JO:EXXJ) sets sights on renewables: Exxaro Resources, SA’s largest coal miner, is in the hunt for acquisitions in the renewable energy sector as it ramps its strategy to transform into a diversified company that thrives in a low-carbon economy.
- MTN (JO:MTNJ) hires FNB’s Bradwin Roper to head up SA fintech unit: The head of FNB’s mobile business is leaving to join MTN as its new Chief of financial services for SA, the mobile operator announced.
- GSK Plc (LON:GSK): The pharmaceutical company announced that it has entered into an agreement under which the company would acquire BELLUS for $14.75 per share of common stock in cash representing an approximate total equity value of $2.00bn (GBP1.60bn).
- Anglo American Plc (JO:AGLJ): The mining company announced that it has secured approval for the environmental permit application for the Los Bronces Integrated Project from the Committee of Ministers, Chile.
- Entain Plc (LON:ENT): The gaming and entertainment company, in its 1Q23 trading update, revealed that its net gaming revenue (NGR) increased 15.0% as compared with the previous year. Moreover, online NGR advanced 16.0% in line with expectations and demonstrating strong momentum.