South Africa Market Review
- South African markets closed in the green yesterday, led by gains in banking and retail sector stocks.
- Banks, Capitec Bank Holdings (JO:CPIJ) and Standard Bank Group (JO:SBKJ) climbed 5.1% and 1.2%, respectively.
- Food companies, RFG Holdings (JO:RFGJ), Tiger Brands (JO:TBSJ) and RCL Foods (JO:RCLJ) advanced 3.5%, 1.7% and 1.2%, respectively.
- Retailers, SPAR Group (JO:SPPJ), Mr Price Group (JO:MRPJ) and Shoprite Holdings (JO:SHPJ) gained 3.2%, 2.9% and 1.7%, respectively.
- Gold mining companies, Gold Fields (JO:GFIJ) and AngloGold Ashanti (JO:ANGJ) rose 1.7% and 1.4%, respectively.
- On the flipside, platinum mining companies, Anglo American Platinum (JO:AMSJ) and Impala Platinum (JO:IMPJ) dropped 3.4% and 1.5%, respectively.
- Diversified miners, Anglo American (JO:AGLJ), Exxaro Resources (JO:EXXJ) and Kumba Iron Ore (JO:KIOJ) declined 1.9%, 1.8% and 1.0%, respectively.
- The JSE All Share index advanced 0.5% to close at 75,585.23.
UK Market Review
- The UK market finished weaker yesterday, as the British Pound strengthened after the Bank of England (BoE) raised its key interest rates for the 11th consecutive time.
- Banking firms, Standard Chartered (LON:STAN), HSBC Holdings (LON:HSBA), Barclays (LON:BARC) and Lloyds Banking Group (LON:LLOY) dropped 3.0%, 2.9%, 2.0% and 1.9%, respectively.
- Retailers, Tesco (LON:TSCO), B&M European Value Retail S.A. (LON:BMEB) and JD Sports Fashion (LON:JD) declined 2.0%, 1.4% and 0.7%, respectively.
- Energy companies, Shell (LON:RDSa) and BP (LON:BP) shed 2.0% and 1.1%, respectively. On the other hand, miners, Antofagasta (LON:ANTO) and Fresnillo (LON:FRES) advanced 1.3% and 1.1%, respectively.
- Water Utilities companies, Severn Trent (LON:SVT) and United Utilities Group (LON:UU) gained 1.3% and 1.1%, respectively.
- The FTSE 100 index declined 0.9% to close at 7,499.60.
US Market Review
- US markets ended higher yesterday, as US Treasury Secretary, Janet Yellen pledged further steps to keep bank deposits safe.
- Consultancy firm, Accenture (NYSE:ACN) climbed 7.3%, even though the company announced plans to cut about 19,000 jobs.
- General Mills (NYSE:GIS) rose 2.9%, after reporting upbeat earnings in 3Q22.
- Technology companies, Intel (NASDAQ:INTC), Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) advanced 3.2%, 2.0% and 0.7%, respectively.
- On the contrary, energy companies, Devon Energy Corporation (NYSE:DVN), Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) declined 2.2%, 1.2% and 1.0%, respectively.
- The S&P 500 index rose 0.3% to settle at 3,948.72, while the DJIA index advanced 0.2% to close at 32,105.25.
- The NASDAQ index climbed 1.0% to end the trading session at 11,787.40.
Asia Market Review
- Asian markets are trading lower this morning. In Japan, chemical company, Nissan Chemical Corporation (TYO:4021) has declined 1.8%.
- On the flipside, transportation company, Kawasaki Kisen Kaisha (TYO:9107) has gained 2.7%.
- In Hong Kong, banking company, HSBC Holdings (HK:0005) has dropped 3.3%.
- On the other hand, consumer electronics company, Lenovo Group (HK:0992) has jumped 7.4%.
- In South Korea, steel company, TCC Steel Corporation (KS:002710) has shed 5.4%.
- On the contrary, semiconductor company, Hanmi Semiconductor (KS:042700) has edged up 12.3%.
- The Nikkei 225 index is trading 0.3% lower at 27,348.72.
- The Hang Seng index has declined 0.2% to trade at 19,999.73, while the Kospi index is trading 0.6% lower at 2,409.54.
Commodities
- At 05:30 SAST today, Brent spot prices rose 0.4% to trade at $74.88/bl.
- Yesterday, Brent spot prices fell 0.7% to settle at $74.60/bl, after US Energy Secretary Jennifer Granholm said refilling the country's Strategic Petroleum Reserve (SPR) may take longer than expected.
- Yesterday, the Illinois North Central No.2 Yellow corn spot prices fell 0.3% to $6.5175/bushel.
- At 05:30 SAST today, gold prices declined 0.1% to trade at $1,990.71/oz. Yesterday, gold gained 1.2% to close at $1,993.40/oz, as a weaker dollar and a drop in the US Treasury yields boosted demand for the safe haven yellow metal.
- Yesterday, copper rose 1.5% to close at $9,033.00/mt. Aluminium closed 1.9% higher at $2,278.75/mt.
Currencies
- Yesterday, the South African rand strengthened against the US dollar. In the US, the Chicago Fed national activity index dropped in February. Moreover, the number of people applying for initial jobless claims unexpectedly declined in the week ended 17 March 2023. Meanwhile, new home sales rose in February. Also, the Kansas Fed manufacturing index rose more than expected in March.
- The yield on benchmark government bonds fell yesterday. The yield on 2026 bond fell to 8.35%. Further, the yield on the longer-dated 2030 issue fell to 9.93%.
- At 05:30 SAST, the US dollar is trading 0.1% higher against the South African rand at R18.1233, while the euro is trading 0.1% higher at R19.6174. At 06:00 SAST, the British pound has marginally gained against the South African rand to trade at R22.2482.
- Yesterday, the euro declined against most of the major currencies. In the eurozone, the consumer confidence index unexpectedly declined in March.
- At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.0824, while it has marginally gained against the British pound to trade at GBP0.8819.
Economic Updates
- The Bank of England (BoE) in its latest policy meeting, increased its key interest rate by 25 basis point to 4.25%, in line with market expectations.
- In the UK, the GfK consumer confidence rose to a level of -36.00 in March, in line with market expectations and compared to a level of -38.00 recorded in the previous month.
- The Swiss National Bank (SNB), in its recent policy meeting, raised its benchmark interest rate by 50 basis points to 1.50%, as expected.
- In the eurozone, the consumer confidence index unexpectedly dropped to a level of -19.20 in March, compared to market expectations for a rise to a level of -18.30. In the previous month, the consumer confidence index had recorded a revised level of -19.10.
- In the US, the Chicago Fed National Activity Index dropped to a level of -0.19 in February, compared to a level of 0.23 recorded in the previous month.
- In the US, initial jobless claims unexpectedly dropped to a level of 191.00K in the week ended 17 March 2023, compared to a level of 192.00K recorded in the prior week.
- In the US, new home sales rose 1.1% on a MoM basis in February, less than market expectations for a rise of 1.6%. New home sales had recorded a revised rise of 1.8% in the previous month.
- In the US, current account deficit unexpectedly narrowed to a level of $206.80bn in 4Q22, compared to a revised deficit of $219.00bn recorded in the previous month.
- In Japan, the consumer price index (CPI) rose 3.3% on a YoY basis in February, less than market expectations for a rise of 4.1%. In the prior month, the CPI had recorded a rise of 4.3%.
- In Japan, the Jibun Bank manufacturing PMI unexpectedly rose to a level of 48.60 in March, compared to market expectations for a drop to a level of 47.50. In the previous month, the manufacturing PMI had recorded a level of 47.70.
- In Japan, the services PMI unexpectedly rose to a level of 54.20 in March, compared to a rise to a level 54.00 recorded in the prior month
- In Australia, the S&P Global manufacturing PMI dropped to a level of 48.70 in March, more than market expectations and compared to a level of 50.50 recorded in the prior month.
- In Australia, the S&P Global services PMI dropped more-than-expected to a level of 48.20 in March. In the previous month, the services PMI had recorded a level of 50.70.
Corporate Updates
South Africa
- Resilient REIT Limited (JO:RESJ): The real estate investment trust company, in its FY22 results, indicated that total revenues rose to R3.50bn from R1.62bn posted in the six months ended 31 December 2021. Its diluted EPS stood at R10.78.
- Remgro Limited (JO:REMJ): The investment company, in its interim results for the six months ended 31 December 2022, indicated that its revenue rose to R44.73bn from R38.34bn posted in the corresponding period of the previous year. Its diluted EPS decreased 19.8% from the same period of the prior year to 695.60c.
- Blue Label Telecoms Limited (JO:BLUJ): The telecommunications company announced that Mr Douglas Craigie Stevenson (Douglas), will step down as Chief Executive Officer (CEO) of Cell C, effective 31 March 2023. Meanwhile, Mr Brett Copans (Brett) has been appointed as the interim CEO with immediate effect.
- Accelerate Property Fund Limited (JO:APFJ): The real estate investment trust company, in its FY22 trading update, revealed that it expects distribution per share to be more than 15% lower as compared to the previous year.
- CIVH earnings jump tenfold as it stretches its dominance in the home to fibre market: Community Investment Ventures Holdings (CIVH) has shaken off previous years’ losses with interim earnings soaring tenfold as it continues to dominate SA’s fibre-to-the-home (FTTH) market.