Market Review, Corporate Updates, Commodities & Currencies - 30.11.22

  • Market Overview

South Africa Market Review

  • South African markets closed in the red yesterday, amid losses in banking and retail sector stocks.
  • Banks, FirstRand (JO: FSRJ ), Standard Bank Group (JO: SBKJ ), Capitec Bank Holdings (JO: CPIJ ) and Nedbank Group (JO: NEDJ ) shed 2.9%, 2.0%, 1.5% and 1.4%, respectively.
  • Retailers, Mr Price Group (JO: MRPJ ), Clicks Group (JO: CLSJ ) and Shoprite Holdings (JO: SHPJ ) declined 2.9%, 1.3% and 0.7%, respectively.
  • Gold miners, AngloGold Ashanti (JO: ANGJ ) and Gold Fields (JO: GFIJ ) dropped 2.3% and 1.5%, respectively.
  • Pharmaceutical companies, Aspen Pharmacare (JO: APNJ ) and Netcare (JO: NTCJ ) eased 1.9% and 1.0%, respectively.
  • On the flipside, diversified miners, Kumba Iron Ore (JO: KIOJ ), Anglo American (JO: AMSJ ) and Exxaro Resources (JO: EXXJ ) advanced 2.5%, 2.4% and 1.1%, respectively.
  • The JSE All Share index declined 0.3% to close at 73,127.92.

UK Market Review

  • The UK market finished firmer yesterday, buoyed by gains in commodity stocks amid hopes for an ease in Covid-19 restrictions in China.
  • Banking firm, HSBC Holdings (LON: HSBA ) gained 4.4%, after the company announced the sale of its Canadian business to Royal Bank of Canada for a cash consideration of C$13.50bn ($10.00bn).
  • Peers, Standard Chartered (LON: STAN ), Barclays (LON: BARC ) and Lloyds Banking Group (LON: LLOY ) climbed 5.0%, 1.8% and 1.1%, respectively.
  • Miners, Rio Tinto (LON: RIO ), Antofagasta (LON: ANTO ) and Glencore (LON: GLEN ) advanced 3.7%, 2.8% and 2.3%, respectively.
  • Energy companies, BP (LON: BP ) and Shell (LON: RDSa ) added 1.8% and 1.7%, respectively.
  • On the other hand, water utilities companies, SSE (LON: SSE ) and National Grid (LON: NG ) declined 1.3% and 0.7%, respectively.
  • The FTSE 100 index advanced 0.5% to close at 7,512.00.

US Market Review

  • US markets ended mostly lower yesterday, amid weaker consumer confidence in November and as investors await speech by US Federal Reserve (Fed) Chair Jerome Powell and ahead of the US Jobs report.
  • Technology company, Apple (NASDAQ: AAPL ) dropped 2.1%, amid supply chain concerns following Covid unrest in China.
  • Peers, Salesforce (NYSE: CRM ) and Microsoft (NASDAQ: MSFT ) shed 1.3% and 0.6%, respectively.
  • Consumer goods companies, Procter & Gamble (NYSE: PG ) and Johnson & Johnson (NYSE: JNJ ) declined 0.8% and 0.7%, respectively.
  • On the contrary, financial services companies, American Express (NYSE: AXP ) and JPMorgan Chase (NYSE: JPM ) gained 2.4% and 1.6%, respectively.
  • The S&P 500 index fell 0.2% to settle at 3,957.63, while the DJIA index marginally advanced to close at 33,852.53.
  • The NASDAQ index eased 0.6% to end the trading session at 10,983.78.

Asia Market Review

  • Asian markets are trading mostly higher this morning.
  • In Japan, information technology company, Fujitsu (TYO: 6702 ) has declined 1.9%.
  • On the flipside, transportation company, Kawasaki Kisen Kaisha (TYO: 9107 ) has gained 2.1%.
  • In Hong Kong, automobile company, Geely Automobile Holdings (HK: 0175 ) has climbed 5.5%.
  • On the other hand, real estate company, Longfor Group Holdings (HK: 0960 ) has dropped 3.0%.
  • In South Korea, pharmaceutical company, Myungmoo Pharmaceutical (KS: 017180 ) has surged 9.9%.
  • On the contrary, semiconductor company, Kidari Studio (KS: 020120 ) has shed 5.5%.
  • The Nikkei 225 index is trading 0.5% lower at 27,914.58.
  • The Hang Seng index has gained 0.3% to trade at 18,261.19, while the Kospi index is trading 0.6% higher at 2,447.98.

Commodities

  • At 06:00 SAST today, Brent spot prices rose 0.2% to trade at $84.47/bl, extending previous sessions gains.
  • Yesterday, Brent spot prices rose 2.8% to settle at $84.29/bl, amid hopes for an ease in China’s Covid-19 policies. Meanwhile, the American Petroleum Institute (API) reported that crude oil inventories declined by 7.85mn bls in the week ended 25 November 2022.
  • Yesterday, the Illinois North Central No.2 Yellow corn spot prices fell 0.9% to $7.12625/bushel.
  • At 06:00 SAST today, gold prices advanced 0.3% to trade at $1,755.20/oz. Yesterday, gold gained 0.5% to close at $1,749.85/oz, as a weaker greenback boosted demand for the safe haven yellow metal.
  • Yesterday, copper rose 1.3% to close at $8,036.00/mt. Aluminium closed 0.7% higher at $2,344.99/mt.

Currencies

  • Yesterday, the South African rand strengthened against the US dollar. In South Africa, the unemployment rate declined to its lowest since the first quarter of 2021, in 3Q22. Moreover, private sector credit demand eased in October. In the US, housing price index unexpectedly rose in September. Meanwhile, the consumer confidence index declined to a four month low in November.
  • The yield on benchmark government bonds fell yesterday. The yield on 2026 bond fell to 8.69%. Further, the yield on the longer-dated 2030 issue fell to 10.21%.
  • At 06:00 SAST, the US dollar is trading 0.2% lower against the South African rand at R16.9625, while the euro is trading marginally lower at R17.5558. At 06:00 SAST, the British pound has marginally gained against the South African rand to trade at R20.3246.
  • Yesterday, the euro declined against most of the major currencies. In Germany, consumer price inflation declined in November, amid fall in energy prices. In the eurozone, the economic confidence index improved in November.
  • At 06:00 SAST, the euro advanced 0.2% against the US dollar to trade at $1.035, while it has weakened 0.1% against the British pound to trade at GBP0.8638.

Economic Updates

  • In South Africa, private sector credit demand rose 9.34% on a YoY basis in October from 9.74% in the prior month. Private sector credit recorded a rise of.
  • In South Africa, the unemployment rate declined to 32.9% in 3Q22, compared to 33.9% in the previous quarter.
  • In Switzerland, the seasonally adjusted gross domestic product (GDP) rose 0.2% on a QoQ basis in 3Q22, less than market expectations for an advance of 0.3%. GDP had registered a revised rise of 0.1% in the prior quarter.
  • In the UK, the number of mortgage approvals for house purchases dropped to 58.98K in October, more than market expectations for a drop to 60.20K. In the prior month, the number of mortgage approvals for house purchases had registered a revised reading of 65.97K.
  • In Italy, the producer price index (PPI) unexpectedly dropped 3.3% on a MoM basis in October. The PPI had registered a revised rise of 2.7% in the previous month.
  • In Germany, the flash consumer price index (CPI) eased 0.5% on a MoM basis in November, compared to an advance of 0.9% in the previous month. Market anticipations were for the CPI to drop 0.2%.
  • In the eurozone, the final consumer confidence index recorded a rise to a level of -23.90 in November. The consumer confidence index had recorded a revised level of -27.50 in the prior month. The preliminary figures had also indicated an advance to a level of -23.90.
  • In the eurozone, the economic sentiment indicator climbed to a level of 93.70 in November, compared to a revised reading of 92.70 in the previous month. Markets were anticipating the economic sentiment indicator to climb to a level of 93.50.
  • In the US, the housing price index advanced 0.1% on a MoM basis in September. The housing price index had registered a drop of 0.7% in the previous month.
  • In the US, the consumer confidence index recorded a rise to a level of 100.20 in November, more than market expectations and compared to a revised level of 102.20 In the prior month.
  • In Japan, flash industrial production rose 3.7% on a YoY basis in October. Industrial production had recorded a rise of 9.6% in the prior month.
  • In China, the NBS manufacturing PMI registered a drop to a level of 48.00 in November, more than market expectations for a fall to a level of 49.00. The NBS manufacturing PMI had recorded a reading of 49.20 in the prior month.
  • In Australia, the consumer price index (CPI) rose 6.9% on a YoY basis in October, less than market expectations for a rise of 7.4%. The CPI had recorded a rise of 7.3%, in the previous month.

Corporate Updates

South Africa

  • Capital Appreciation eyes more acquisitions in payments market: Fintech group Capital Appreciation (JO: CTAJ ) (Capprec) is looking at investing specifically in payments businesses, with its executives saying it can comfortably make an acquisition worth R1.00bn to R2.00bn.
  • Nando’s joins fast foodies in taking a bite out of plant-based market: Chicken-centric Nando’s is the latest among a growing list of fast-food chains including Spur (JO: SURJ ) Steak ranches, Steers and Burger King to jump on the plant-based food craze wagon.

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