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Robust 3Q21 US Corporate Earnings Boosted Investors Sentiment

Published 2021/11/03, 08:39


  • South African markets closed in the green yesterday, as robust 3Q21 US corporate earnings boosted investors sentiment.
  • Real estate property sector companies, Delta Property Fund, Arrowhead Properties and Capital & Counties Properties soared 9.4%, 4.9% and 1.3%, respectively.
  • However, peer, Accelerate Property Fund (JO:APFJ) plummeted 6.5%. Banking firms, Absa (JO:ABGJ) Group, FirstRand (JO:FSRJ) and Capitec Bank (JO:CPIJ) Holdings advanced 3.4%, 2.4% and 2.0%, respectively.
  • Retail companies, Cie Financiere Richemont SA (JO:CFRJ), Clicks (JO:CLSJ) Group and Cashbuild (JO:CSBJ) gained 2.5%, 1.5% and 1.2%, respectively.
  • On the flipside, mining sector companies, Exxaro (JO:EXXJ) Resources, African Rainbow Minerals (JO:ARIJ) and BHP Group (JO:BHPJ) shed 4.9%, 3.8% and 2.7%, respectively.
  • The JSE All Share index advanced 0.5% to close at 67,782.20.


  • The UK market finished weaker yesterday, dragged down by broad based losses in mining sector stocks.
  • Antofagasta (LON:ANTO), Fresnillo (LON:FRES) and Anglo American (JO:AMSJ) plunged 5.5%, 3.7% and 3.3%, respectively.
  • Banking firm, Standard Chartered (LON:STAN) plummeted 7.9%, on account of a lower than expected FY21 earnings guidance, despite a more than doubling of profits in 3Q21.
  • Flutter Entertainment (LON:FLTRF) dropped 7.7%, following a lower than estimated FY21 earning guidance, amid undesirable sports results in October and the company’s temporary Netherlands exit.
  • Energy company, BP (LON:BP) shed 3.4%, despite additions to its share buy back programme, amid soaring oil and gas prices and robust 3Q21 results.
  • The FTSE 100 index declined 0.2% to close at 7,274.81.


  • US markets ended higher yesterday, buoyed by robust 3Q21 corporate earnings.
  • Avis Budget Group rallied 108.3%, after the company reported record 3Q21 results, on account of high demand for rental cars in the domestic market.
  • Under Armour surged 16.5%, after the company reported better than expected 3Q21 earnings and raised its guidance for FY21.
  • On the flipside, Ralph Lauren Corporation (NYSE:RL) plunged 9.7%, despite reporting upbeat 2Q22 results.
  • Moreover, the company announced that it expects to resume its share repurchases in 2H22.
  • The S&P 500 index rose 0.4% to settle at 4,630.65, while the DJIA index advanced 0.4% to close at 36,052.63.
  • The NASDAQ index climbed 0.3% to end the trading session at 15,649.60.


  • Asian markets are trading lower this morning, despite overnight gains on Wall Street.
  • In China, service activity expanded less than expected in October.
  • In Japan, markets are closed today on account of a public holiday. In Hong Kong, glass manufacturing company, Xinyi Glass Holdings (HK:0868) has shed 3.8%.
  • On the flipside, pharmaceutical company, SCPC Pharmaceutical Group (TW:1720) has added 0.9%.
  • In South Korea, Kakao Pay (KS:035720) made its debut with its shares trading more than double the issue price.
  • It has soared 115.6%. On the other hand, technology company, Samsung Electronics (KS:005930) has shed 1.5%.
  • Yesterday, the Nikkei 225 index dropped 0.4% to end the session at 29,520.90.
  • Today, the Hang Seng index has declined 0.9% to trade at 24,877.58, while the Kospi index is trading 1.4% lower at 2,971.44.


  • At 06:00 SAST today, Brent spot prices fell 0.5% to trade at $83.88/bl, extending the previous session’s losses.
  • Yesterday, Brent spot prices fell 0.6% to settle at $84.28/bl, after the American Petroleum Institute (API) reported that crude oil inventories rose by 3.60mn bls for the week ended 29 October. Meanwhile, the US President, Joe Biden condemned a surge in global oil and gas prices, following a denial by OPEC+ to pump more crude.
  • Yesterday, the Illinois North Central No.2 Yellow corn spot prices fell 1.1% to $5.51/bushel.
  • At 06:00 SAST today, gold prices declined 0.2% to trade at $1,783.39/oz. Yesterday, gold declined 0.3% to close at $1,787.76/oz, as strength in the greenback dented demand for the safe haven yellow metal.
  • Yesterday, copper declined 2.2% to close at $9,770.50/mt. Aluminium closed 1.1% lower at $2,676.50/mt.


  • Yesterday, the South African rand weakened against the US dollar. In South Africa, manufacturing activity dropped in October, on account of a strike in the steel and engineering sector and power cuts by Eskom.
  • The yield on benchmark government bonds rose yesterday. The yield on 2026 bond rose to 8.22%. Further, the yield on 2023 bond advanced to 5.57%, while that for the longer-dated 2030 issue rose to 9.62%.
  • At 06:00 SAST, the US dollar is trading 0.1% lower against the South African rand at R15.4225, while the euro is trading 0.1% lower at R17.8624. At 06:00 SAST, the British pound has marginally gained against the South African rand to trade at R21.0243.
  • Yesterday, the euro declined against most of the major currencies. In Germany, manufacturing activity dropped more than expected in October. Meanwhile, in the eurozone, manufacturing activity remained strong in October but it was restrained by supply chain bottlenecks and logistical problems which set input costs to soaring highs.
  • At 06:00 SAST, the euro marginally advanced against the US dollar to trade at $1.1582, while it has weakened 0.1% against the British pound to trade at GBP0.8496.


  • In October, the manufacturing PMI eased to 53.60 in South Africa. In the prior month, the manufacturing PMI had registered a revised reading of 56.80.
  • The consumer price index (CPI) in Switzerland advanced 0.3% on a MoM basis, in October. The CPI had recorded a steady reading 0.0% in the previous month.
  • Real retail sales in Switzerland registered a rise of 2.5% on an annual basis, in September. In the prior month, real retail sales had advanced by a revised 0.8%.
  • The manufacturing PMI fell unexpectedly to 57.40 in Spain, in October, compared to a reading of 58.10 in the previous month.
  • The manufacturing PMI climbed unexpectedly to a level of 61.10 in Italy, in October. The manufacturing PMI had registered a reading of 59.70 in the previous month.
  • The final manufacturing PMI registered a drop to 53.60 in October, compared to a level of 55.00 in the previous month, in France. Market expectations were for manufacturing PMI to ease to 53.50. The preliminary figures had indicated a drop to 53.50.
  • In Germany, the final manufacturing PMI recorded a drop to 57.80 in October, higher than market expectations of a drop to 58.20. In the prior month, manufacturing PMI had recorded a level of 58.40. The preliminary figures had recorded a drop to 58.20.
  • In October, the final manufacturing PMI recorded a drop to 58.30 in the eurozone, more than market expectations for a drop to a level of 58.50. The preliminary figures had indicated a fall to 58.50. In the prior month, the manufacturing PMI had registered a reading of 58.60.
  • in October, the Caixin/Markit services PMI index rose to a level of 53.80 in China, compared to a reading of 53.40 in the previous month.



  • Massmart Holdings (JO:MSMJ) Limited: The retail company, in its sales update for the 39 weeks ended 26 September 2021, indicated that total sales for the period amounted to R60.60bn, increasing by 0.2% over the prior year, with comparable store sales increasing by 2.9% over the same period. Comparable stores sales account for the impact of stores opened or closed during the period, and also for the impact of stores damaged as a result of the civil unrest and were unable to trade. Sales from its South African stores amounted to R55.40bn, increasing by 1.2% on the prior year, with comparable store sales increasing by 4.4%. Total sales from its ex-South Africa stores amounted to R5.20bn, translating to a 9.2% decline in Rand terms compared to the same period last year, with comparable stores decreasing by 9.9%. Sales in the Rest of Africa was impacted by local currency weakness. In constant currency, sales from its ex-South Africa stores increased by 1.8%, with comparable store sales increasing by 0.9%.
  • Net 1 UEPS Technologies (JO:NT1J): The financial technology company announced that it has signed a definitive agreement to acquire 100.0% of the Connect Group for a consideration of approximately R3.70bn, or $242.00mn at an exchange rate of $1: R15.22. The acquisition of the Connect Group, a profitable, high-growth and leading South African fintech company, is transformational for Net1 in its journey to becoming South Africa’s leading fintech platform. The acquisition is expected to close in the quarter ending 31 March 2022, as it is subject to regulatory approval and satisfaction of customary closing conditions.
  • Oil edges towards $85/barrel as demand grows and Opec supply lags: Oilrose towards $85 a barrel, not far from a multiyear high, supported by signs that supply from Opec and other producers is falling short as demand recovers from the worst of the pandemic.

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