Market Review, Corporate Updates, Commodities & Currencies - 28.04.23

  • Market Overview

South Africa Market Review

  • South African markets closed in the green on Wednesday, buoyed by gains in industrial metals, financial and mining sector stocks.
  • Gold miners, Harmony Gold Mining Company (JO: HARJ ) and AngloGold Ashanti (JO: ANGJ ) gained 2.1% and 1.3%, respectively.
  • Diversified miners, African Rainbow Minerals (JO: ARIJ ), Kumba Iron Ore (JO: KIOJ ) and Anglo American (JO: AMSJ ) advanced 1.9%, 1.7% and 1.2%, respectively.
  • Insurance companies, Sanlam (JO: SLMJ ), Old Mutual (JO: OMUJ ) and Discovery added 1.5%, 1.3% and 0.6%, respectively.
  • Banks, Capitec Bank Holdings (JO: CPIJ ), Nedbank Group (JO: NEDJ ) and Absa Group (JO: ABGJ ) rose 1.9%, 1.1% and 1.0%, respectively.
  • On the flipside, platinum miners, Royal Bafokeng Platinum (JO: RBPCBe ) and Northam Platinum (JO: NHMJ ) declined 1.1% and 1.0%, respectively.
  • The JSE All Share index rose 0.3% to close at 78,122.12.

UK Market Review

  • The UK market finished lower for a fourth consecutive session yesterday, led by losses in commodity sector stocks.
  • St. James Place (LON: SJP ) shed 3.7%, after the company reported lower quarterly net flows amid a challenging economic environment.
  • Paper and packaging companies, DS Smith (LON: SMDS ) and Smurfit Kappa Group (LON: SKG ) declined 2.2% and 1.9%, respectively.
  • Energy companies, BP (LON: BP ) and Shell (LON: RDSa ) dropped 1.8% and 1.4%, respectively.
  • On the flipside, Barclays (LON: BARC ) gained 5.3%, after the lender reported higher profits in 1Q23, helped by its credit card business in the US.
  • Telecommunications companies, BT Group (LON: BT ) and Vodafone Group (LON: VOD ) advanced 3.1% and 1.7%, respectively.
  • The FTSE 100 index declined 0.3% to close at 7,831.58.

US Market Review

  • US markets ended stronger yesterday, following robust earnings results from technology giants.
  • Meta (NASDAQ: META ) surged 13.9%, after the company reported upbeat quarterly results and issued a positive guidance for the second quarter.
  • E-commerce company, Amazon.com (NASDAQ: AMZN ) gained 4.6%, after the company reported better than expected revenues in 1Q23.
  • Pharmaceutical company, Eli Lilly & Company (NYSE: LLY ) added 3.7%, after the company raised its FY23 profit outlook.
  • On the contrary, drugmaker, AbbVie (NYSE: ABBV ) shed 8.0%, after the company reported lower revenue for its newer treatments.
  • The S&P 500 index advanced 2.0% to settle at 4,135.35, while the DJIA index added 1.6% to close at 33,826.16.
  • The NASDAQ index gained 2.4% to end the trading session at 12,142.24.

Asia Market Review

  • Asian markets are trading higher this morning, as the Bank of Japan kept its key interest rate unchanged.
  • In Japan, pharmaceutical company, Astellas Pharma (TYO: 4503 ) has gained 3.2%.
  • On the other hand, IT company, Fujitsu (TYO: 6702 ) has eased 1.5%.
  • In Hong Kong, insurance company, China Life Insurance Company (OTC: LFCHY ) has added 1.8%.
  • On the flipside, glass products company, Xinyi Glass Holdings (HK: 0868 ) has shed 3.7%.
  • In South Korea, chemical distribution company, ISU Chemical Company (KS: 005950 ) has shed 8.5%.
  • On the contrary, technology company, Samsung Electronics (KS: 005930 ) has advanced 1.2%.
  • The Nikkei 225 index is trading 0.7% higher at 28,656.19.
  • The Hang Seng index has advanced 0.7% to trade at 19,983.50, while the Kospi index is trading 0.1% higher at 2,498.27.

Commodities

  • At 05:30 SAST today, Brent spot prices rose 0.3% to trade at $78.82/bl.
  • Yesterday, Brent spot prices rose 0.8% to settle at $78.58/bl, as Russian Deputy Prime Minister, Alexander Novak said global oil markets were balanced and OPEC+ does not see the need for further oil output cuts.
  • Yesterday, the Illinois North Central No.2 Yellow corn spot prices fell 2.9% to $6.28/bushel.
  • At 05:30 SAST today, gold prices advanced 0.1% to trade at $1,988.94/oz. Yesterday, gold declined 0.1% to close at $1,987.78/oz, following rate hike fears and as stronger dollar dented demand for the precious yellow metal.
  • Yesterday, copper rose 0.4% to close at $8,569.50/mt. Aluminium closed 0.2% lower at $2,308.50/mt.

Currencies

  • Yesterday, the South African rand strengthened against the US Dollar. In the US, economic growth slowed in 1Q23, as businesses reduced investments. Additionally, pending home sales fell by the most since September in March. Meanwhile, initial jobless claims dropped in the week ended 21 April 2023
  • The yield on benchmark government bonds fell on Wednesday. The yield on 2026 bond fell to 8.83%. Further, the yield on the longer-dated 2030 issue fell to 10.19%.
  • At 05:30 SAST, the US dollar is trading 0.8% higher against the South African rand at R18.3069, while the euro is trading 0.1% lower at R20.1719. At 05:30 SAST, the British pound has marginally declined against the South African rand to trade at R22.8716.
  • Yesterday, the euro declined against most of the major currencies. In the eurozone, economic confidence improved in April.
  • At 05:30 SAST, the euro slipped 0.1% against the US dollar to trade at $1.102, while it has weakened 0.1% against the British pound to trade at GBP0.8821.

Economic Updates

  • In Germany, the GfK consumer confidence advanced to -25.70 in May, compared to a revised level of -29.30 in the prior month. Markets were expecting the consumer confidence to rise to -27.50.
  • In Spain, the unemployment rate advanced 13.26% to in 1Q23, more than market expectations and compared to 12.87% in the prior quarter.
  • In Spain, retail sales registered a rise of 9.5% on a YoY basis in March. Retail sales had registered a revised rise of 4.1% in the previous month.
  • In Italy, the consumer confidence index advanced to 105.50, compared to a reading of 105.10 recorded in the previous month.
  • In Italy, business confidence index fell to a level of 103.00 in April, more than market expectations and compared to a revised reading of 104.10 in the prior month.
  • In the eurozone, the final consumer confidence index recorded a rise to -17.50 in April, compared to a revised level of -19.10 in the previous month.
  • In the eurozone, the economic sentiment indicator rose to a level of 99.30, less than market expectations for a rise to a level of 99.90. In the prior month, the economic sentiment indicator recorded a revised level of 99.20.
  • In the US, the mortgage applications advanced 3.7% on a weekly basis in the week ended 21 April 2023. The number of mortgage applications had recorded a drop of 8.8% in the previous week.
  • In the US, durable goods orders climbed 3.2% in March, compared to revised drop of 1.2% in February.
  • In the US, goods trade deficit narrowed to $84.60bn in March, compared to a deficit of $93.00bn in the previous month.
  • In the US, annualised gross domestic product (GDP) advanced 1.1% on a QoQ basis in 1Q23, less than market expectations and compared to an advance of 2.6% in the previous quarter.
  • In the US, initial jobless claims recorded an unexpected drop to a level of 230.00K in the week ended 21 April 2023. In the previous week, the number of initial jobless claims had recorded a revised level of 246.00K.
  • In the US, pending home sales unexpectedly slid 5.2% on a MoM basis in March, compared to market expectations for an advance of 0.5%.
  • In Japan, the Tokyo consumer price index (CPI) rose 3.5% on a YoY basis in April, compared to a rise of 3.3% in the previous month. Market anticipations were for the CPI to advance 2.6%.
  • In Japan, the unemployment rate unexpectedly rose to 2.8% in March, compared to a 2.6% in the previous month.
  • In Japan, the flash industrial production fell 0.7% on a YoY basis in March. In the prior month, industrial production had dropped 0.5%.
  • The Bank of Japan (BoJ) kept its benchmark interest rate unchanged at -0.1%.
  • In Australia, the producer price index (PPI) advanced 1.0% on a QoQ basis in 1Q23, less than market expectations and compared to a rise of 0.7% recorded in the prior quarter.

Corporate Updates

South Africa

  • Oil prices limp higher after heavy losses on US recession worries: Oil prices rose slightly, finding some support after heavy losses in the previous two sessions driven by fears of a US recession and an increase in Russian oil exports that dulled the impact of OPEC production cuts.

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