South Africa Market Review
- South African markets closed in the red on Friday, led by losses in mining and retail sector stocks.
- Diversified miners, Kumba Iron Ore (JO:KIOJ), Anglo American (JO:AGLJ) and Exxaro Resources (JO:EXXJ) shed 8.3%, 5.8% and 3.1%, respectively.
- Platinum miners, Impala Platinum (JO:IMPJ), Anglo American Platinum (JO:AMSJ) and Northam Platinum (JO:NHMJ) dropped 3.1%, 2.5% and 1.0%, respectively.
- Real estate companies, Dipula Income Fund (JO:DIBJ), Growthpoint Properties (JO:GRTJ) and Fortress REIT (JO:FFAJ) fell 2.5%, 0.8% and 0.6%, respectively.
- Retailers, Mr Price Group (JO:MRPJ), Pick ‘n Pay stores (JO:PIKJ) and Shoprite Holdings declined 2.2%, 1.8% and 0.7%, respectively.
- Banks, Investec and Absa Group (JO:ABGJ) eased 1.5% and 1.0%, respectively.
- On the flipside, pharmaceutical companies, Aspen Pharmacare (JO:APNJ) and Netcare (JO:NTCJ) advanced 1.2% and 1.0%, respectively.
- The JSE All Share index declined 1.2% to close at 77,910.96.
UK Market Review
- The UK market finished firmer on Friday, led by gains in retail sector stocks.
- Automotive and power metallurgy company, Dowlais Group (LON:DWL) advanced 4.3%, after the company completed its spin-off from Melrose Industries.
- Retailers, Next (LON:NXT), Tesco (LON:TSCO) and J Sainsbury (LON:SBRY) advanced 2.3%, 1.6% and 0.9%, respectively.
- Beverages companies, Diageo (LON:DGE) and Coca-Cola HBC AG (LON:CCH) advanced 1.7% and 1.4%, respectively.
- Travel and leisure companies, Whitbread (LON:WTB) and InterContinental Hotels Group (LON:IHG) gained 1.5% and 0.8%, respectively.
- On the other hand, miner, Glencore (LON:GLEN) declined 2.2%, after the company reported lower copper production in 1Q23.
- Peers, Rio Tinto (LON:RIO), Fresnillo (LON:FRES) and Antofagasta (LON:ANTO) shed 5.7%, 3.2% and 2.8%, respectively.
- Banks, Standard Chartered (LON:STAN) and Barclays (LON:BARC) eased 0.9% and 0.8%, respectively.
- The FTSE 100 index advanced 0.1% to close at 7,914.13.
US Market Review
- US markets ended higher on Friday, as investors assessed US corporate earnings results.
- Consumer goods company, Procter & Gamble (NYSE:PG) advanced 3.5%, after the company raised its sales outlook for FY23 amid rise in prices.
- On the contrary, chemical company, Albemarle (NYSE:ALB) shed 10.0%, after Chile revealed plans to nationalize its lithium industry.
- Healthcare company, HCA Healthcare (NYSE:HCA) dropped 3.9%, after the company issued upbeat FY23 outlook.
- Technology companies, Intel (NASDAQ:INTC) and Apple (NASDAQ:AAPL) declined 1.8% and 1.0%, respectively.
- The S&P 500 index rose 0.1% to settle at 4,133.52, while the DJIA index advanced 0.1% to close at 33,808.96.
- The NASDAQ index climbed 0.1% to end the trading session at 12,072.46.
Asia Market Review
- Asian markets are trading mostly lower this morning.
- In Japan, pharmaceutical company, Chugai Pharmaceutical (TYO:4519) has advanced 3.7%.
- On the flipside, transportation company, Kawasaki Kisen Kaisha (TYO:9107) has dropped 4.1%.
- In Hong Kong, real estate company, Longfor Group Holdings (HK:0960) had declined 1.6%.
- On the other hand, pharmaceutical company, CSPC Pharmaceutical Group (HK:1093) has gained 3.7%.
- In South Korea, banking company, Jeju Bank (KS:006220) has plunged 10.3%.
- On the contrary, chemical company, Hannong Chemicals (KS:011500) has jumped 13.0%.
- The Nikkei 225 index is trading 0.3% higher at 28,646.39.
- The Hang Seng index has declined 0.6% to trade at 19,957.04, while the Kospi index is trading 0.9% lower at 2,522.29.
Commodities
- At 05:30 SAST today, Brent spot prices fell 0.9% to trade at $81.30/bl, amid rate hikes fears.
- On Friday, Brent spot prices rose 0.3% to settle at $82.08/bl, amid strong global economic data. Meanwhile, Baker Hughes reported that the US oil rigs count rose by 3 to 591.
- On Friday, the Illinois North Central No.2 Yellow corn spot prices fell 0.8% to $6.78/bushel.
- At 05:30 SAST today, gold prices declined 0.1% to trade at $1,980.55/oz. On Friday, gold declined 1.1% to close at $1,983.06/oz, as a stronger dollar dented demand for the safe haven yellow metal.
- On Friday, copper declined 1.0% to close at $8,778.50/mt. Aluminium closed 1.0% lower at $2,385.50/mt.
Currencies
- On Friday, the South African rand weakened against the US dollar. In the US, business activity strengthened in April.
- The yield on benchmark government bonds rose on Friday. The yield on 2026 bond rose to 8.78%. Further, the yield on the longer-dated 2030 issue rose to 10.10%.
- At 05:30 SAST, the US dollar is trading marginally higher against the South African rand at R18.1135, while the euro is trading 0.1% higher at R19.8911. At 05:30 SAST, the British pound has gained 0.1% against the South African rand to trade at R22.5222.
- On Friday, the euro advanced against most of the major currencies. In Germany, the manufacturing PMI unexpectedly dropped in April. Meanwhile, the services PMI rose in April. In the eurozone, the manufacturing PMI unexpectedly dropped in April. Meanwhile, the services PMI unexpectedly rose in April.
- At 05:30 SAST, the euro marginally slipped against the US dollar to trade at $1.0982, while it has marginally weakened against the British pound to trade at GBP0.8832.
Economic Updates
- In the UK, retails sales dropped 0.9% on a MoM basis in March, more than market expectations and compared to a revised rise of 1.1% recorded in the previous month.
- In the UK, the S&P Global manufacturing PMI unexpectedly dropped to a level of 46.60 in April, compared to a level of 47.90 recorded in the previous month.
- In the UK, the S&P Global services PMI rose to a level of 54.90 in April, compared to a level of 52.90 recorded in the previous month.
- In the UK, the Rightmove house price index rose 0.2% on a MoM basis in April, compared to a rise of 0.8% recorded in the previous month.
- In France, the HCOB manufacturing PMI unexpectedly dropped to a level of 45.50 in April, compared to a level of 47.30 recorded in the previous month.
- In France, the HCOB services PMI unexpectedly rose to a level of 56.30 in April, compared to a level of 53.90 recorded in the previous month.
- In Germany, the manufacturing PMI unexpectedly dropped to a level of 44.00 in April, compared to a level of 44.70 recorded in the previous month.
- In Germany, the services PMI rose to a level of 55.70 in April, compared to market expectations for a drop to a level of 53.30. The HCOB services PMI had recorded a level of 53.70 in the previous month.
- In the eurozone, the manufacturing PMI unexpectedly dropped to a level of 45.50 in April, compared to a level of 47.30 recorded in the previous month.
- In the eurozone, the services PMI unexpectedly rose to a level of 56.60 in April, compared to a level of 55.00 recorded in the previous month.
- In the US, the S&P Global manufacturing PMI unexpectedly rose to a level of 50.40 in April, compared to a level of 49.20 recorded in the previous month.
- In the US, the S&P Global services PMI rose to level of 53.70 in April, compared to a level of 52.60 recorded in the previous month. Markets were anticipating the services PMI to drop to a level of 51.50.
- In Canada, retail sales dropped 0.2% on a MoM basis in February, more than market expectations for a drop of 0.6%. Retail sales had recorded a revised rise of 1.6% in the prior month.
Corporate Updates
South Africa
- Glencore Plc (JO:GLNJ): The mining company, in its 1Q23 production report, revealed that its own sourced copper production dropped 5.0% from the corresponding period of the previous year to 244,100 tonnes. Moreover, own sourced zinc production and nickel production declined from the same period of the previous year to 205,300 tonnes and 20,900 tonnes, respectively. Meanwhile, attributable ferrochrome production increased 3.0% from the previous year to 400,000 tonnes.
- Royal Bafokeng Platinum Limited (JO:RBPJ): The platinum mining company, in its production update for the period 1 January 2023 to 31 March 2023, revealed that total tonnes hoisted fell by 2.4% to 1,085kt. Moreover, BRPM tonnes hoisted increased by 4.6% to 639kt. Also, total tonnes milled for the reporting period increased by 6.6% from the previous year to 1,192kt with UG2 contributing 32% or 382kt (2022: 346kt) and Merensky contributing 810kt.
- Coronation Fund Managers Limited (JO:CMLJ): The fund management company, in its 1H23 trading and AUM update, revealed that it expects fund management earnings per share (FMEPS) to be between 110.0% to 120.0%, lower as compared with 214.80c recorded in the corresponding period of the previous year. Also, it expects EPS, and HEPS to be between 101.0% to 111.0%, lower as compared with the 199.10c recorded in the same period of the previous year.
- Oceana Group Limited (JO:OCEJ): The fishing company, in its 1H23 trading update, revealed that it expects EPS to be between 307.40c and 283.40c, as compared with 119.90c recorded in the corresponding period of the previous year. HEPS is expected to be between 311.80c and 286.50c, as compared with 126.40c recorded in the same period of the previous year.
- Cashbuild Limited (JO:CSBJ): The retail company, in its 3Q23 voluntary operational update, revealed that its revenue declined 9.0% as compared with the same period of the previous year. Moreover, for the 309 existing stores revenue fell by 10.0% and the 8 new stores contributed 1.0% growth.
- Merafe Resources Limited (JO:MRFJ): The mining company, in its production update for the period ended 31 March 2023, revealed that its attributable ferrochrome production marginally increased by approximately 3.0% from the previous year to 103.00Kt.
- Oil on track for weekly drop of about 6.0%: Oil prices were on track for a hefty weekly loss as economic and interest rate uncertainty weighed, though prices were stable as the eurozone recovery gathered pace unexpectedly.