South Africa Market Review
- South African markets closed in the green yesterday, buoyed by gains in healthcare and mining sector stocks.
- Pharmaceutical companies, Life Healthcare (JO:LHCJ), Netcare (JO:NTCJ) and Adcock Ingram Holdings (JO:AIPJ) advanced 3.2%, 2.3% and 1.5%, respectively.
- Gold miners, AngloGold Ashanti (JO:ANGJ) and Gold Fields (JO:GFIJ) gained 2.4% and 1.8%, respectively.
- Retailers, Clicks Group (JO:CLSJ), SPAR Group (JO:SPPJ) and Pick ‘n Pay Stores (JO:PIKJ) added 1.6%, 1.4% and 0.7%, respectively.
- On the flipside, food companies, RFG Holdings (JO:RFGJ) and RCL Foods (JO:RCLJ) shed 4.0% and 2.1%, respectively.
- Platinum miners, Northam Platinum (JO:NHMJ) and Royal Bafokeng Platinum (JO:RBPCBe) declined 1.8% and 0.8%, respectively.
- The JSE All Share index advanced 0.3% to close at 78,121.37.
UK Market Review
- The UK market finished weaker yesterday, ahead of domestic corporate earnings data slated to released this week.
- Telecommunications companies, BT Group (LON:BT) and Vodafone Group (LON:VOD) declined 1.5% and 1.1%, respectively.
- Miners, Fresnillo (LON:FRES) and Glencore (JO:GLNJ) dropped 1.6% and 0.9%, respectively, on concerns over rebound in Chinese demand.
- On the other hand, retailers, JD Sports Fashion (LON:JD), Next (LON:NXT) and Burberry Group (LON:BRBY) advanced 1.4%, 1.2% and 1.0%, respectively.
- Energy company, BP (LON:BP) added 0.7%, amid strength in crude oil prices.
- The FTSE 100 index marginally declined to close at 7,912.20.
US Market Review
- US markets ended mixed yesterday, as investors await quarterly earnings results and economic data.
- Automobile companies, Ford Motor (NYSE:F) and General Motors (NYSE:GM) advanced 3.0% and 2.1%, respectively.
- Energy companies, Exxon Mobil Corporation (NYSE:XOM), Devon Energy Corporation (NYSE:DVN) and Chevron Corporation (NYSE:CVX) gained 1.9%, 1.6% and 1.4%, respectively.
- On the contrary, technology companies, Intel (NASDAQ:INTC) and Microsoft (NASDAQ:MSFT) dropped 2.1% and 1.4%, respectively.
- Financial services companies, American Express (NYSE:AXP) and Visa (NYSE:V) shed 2.0% and 0.6%, respectively.
- The S&P 500 index rose 0.1% to settle at 4,137.04, while the DJIA index advanced 0.2% to close at 33,875.40.
- The NASDAQ index eased 0.3% to end the trading session at 12,037.20.
Asia Market Review
- Asian markets are trading mostly lower this morning.
- In Japan, electronic equipment company, Mitsubishi Electric Corporation (TYO:6503) has advanced 4.5%.
- On the flipside, rubber company, Yokohama Rubber (TYO:5101) has declined 1.0%.
- In Hong Kong, pharmaceutical company, Sino Biopharmaceutical (HK:1177) has declined 3.4%.
- On the other hand, life insurance company, China Life Insurance (HK:2628) has gained 0.9%.
- In South Korea, chemicals company, Hannong Chemicals (KS:011500) has shed 12.3%.
- On the contrary, media business company, IHQ (KS:003560) has jumped 10.1%.
- The Nikkei 225 index is trading 0.4% higher at 28,706.04.
- The Hang Seng index has declined 1.4% to trade at 19,681.19, while the Kospi index is trading 1.7% lower at 2,480.77.
Commodities
- At 05:30 SAST today, Brent prices fell 0.1% to trade at $82.61/bl.
- Yesterday, Brent crude oil rose 1.3% to settle at $82.73/bl, amid optimism surrounding Chinese holiday travel that would boost fuel demand.
- Yesterday, the Illinois North Central No.2 Yellow corn spot prices fell 1.5% to $6.67875/bushel.
- At 05:30 SAST today, gold prices advanced 0.8% to trade at $2,005.10/oz. Yesterday, gold gained 0.5% to close at $1,989.10/oz, as a weaker dollar boosted demand for the safe haven yellow metal.
- Yesterday, copper declined 0.8% to close at $8,709.85/mt. Aluminium closed 0.1% higher at $2,387.75/mt.
Currencies
- Yesterday, the South African rand weakened against the US dollar. In the US, the Chicago Fed National Activity index remained unchanged in March. Meanwhile, the Dallas Fed manufacturing business index unexpectedly dropped in April.
- The yield on benchmark government bonds rose yesterday. The yield on 2026 bond rose to 8.85%. Further, the yield on the longer-dated 2030 issue rose to 10.18%.
- At 05:30 SAST, the US dollar is trading 0.1% higher against the South African rand at R18.1602, while the euro is trading 0.2% higher at R20.0773. At 05:30 SAST, the British pound has gained 0.2% against the South African rand to trade at R22.6825.
- Yesterday, the euro advanced against most of the major currencies. In Germany, the Ifo business climate index and Ifo expectations index, both rose more than expected in April. Meanwhile, the Ifo current assessment unexpectedly dropped in April.
- At 05:30 SAST, the euro advanced 0.1% against the US dollar to trade at $1.1055, while it has marginally gained against the British pound to trade at GBP0.8852.
Economic Updates
- In Germany, the Ifo business climate index rose to a level of 93.60 in April, less than market expectations and compared to a revised level of 93.20 recorded in the previous month.
- In Germany, the Ifo current assessment unexpectedly dropped to a level of 95.00 in April, compared to a level of 95.40 recorded in the previous month.
- In Germany, the Ifo business expectations index rose to a level of 92.20 in April, more than market expectations for a rise to a level of 91.60, The Ifo expectations had recorded a revised level of 91.00 in the previous month.
- In the US, the Chicago Fed National Activity Index remained unchanged at -0.19 in March, compared to market expectations for a rise to a level of -0.02.
- In the US, the Dallas Fed manufacturing business index unexpectedly dropped to a level of -23.40 in April, compared to market expectations for a rise to a level of -14.60. The Dallas Fed manufacturing business index had recorded a level of -15.70 in the previous month.
- In Canada, the new housing price index recorded a flat reading on a MoM basis in March, compared to market expectations for a drop of 0.2%. The new housing price index had recorded a drop of 0.2% in the previous month.
Corporate Updates
South Africa
- Oil steady after last week’s sharp fall: Oil prices were steady as concern over rising interest rates, the global economy and the outlook for fuel demand were balanced by the prospect of tightening supplies.