SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 1.36% higher at the 77 746 level.
In a trading update from British American Tobacco, the company said that it expects a small decline in half-year revenue and adjusted profit from operations but maintained its full-year forecast of low single digit growth. As previously highlighted, the company expects performance to be weighted towards the second half of the year, primarily driven by wholesaler inventory movements related to continued investment in the U.S. and the phasing in of new product launches. British American Tobacco said its guidance also reflects ongoing macro-economic pressures, particularly in the U.S. market and the continued lack of effective enforcement against the growing illicit vapor segment.
SA Economy:
The seasonally adjusted Absa Purchasing Managers’ Index (PMI) dropped significantly to 43.8 in May 2024, down from 54 in the previous month. This decline signaled a renewed contraction in the country’s manufacturing sector, primarily due to uncertainties related to the previous week’s election and sluggish demand.
First-quarter GDP growth data will be published later today, with analysts expecting a 0.1% quarterly growth.
Global Economy:
The UK Manufacturing PMI rose to 51.2 in May from 49.1 in April, marking its highest reading since July 2022, though slightly below the flash estimate of 51.3.
The ISM Manufacturing PMI unexpectedly declined to 48.7 in May 2024 from 49.2 in April, below the forecasts of 49.6. This reading indicated another contraction in manufacturing activity, with continued soft demand, stable output, and accommodative input conditions.
The S&P Global US Manufacturing PMI was revised higher to 51.3 in May 2024 from a preliminary of 50.9 and compared to 50 in April.
For the week ahead, updates on the US labor market will be front and center. The May jobs report is set for release on Friday. The report is expected to show that 185 000 non-farm payroll jobs were added to the US economy last month, with unemployment holding steady at 3.9%, according to data from Bloomberg. In April, the US economy added 175 000 jobs while the unemployment rate ticked up slightly to 3.9%.
Global Company:
The FTSE 100 closed 0.15% lower at 8 262.
Asian share markets were trading mixed as investors continue to digest China’s manufacturing PMI data for May. Figures from a private survey showed the fastest factory activity growth in nearly two years, contrasting with official readings that indicated an unexpected decline.
The Hang Seng Index is trading 0.34% higher at 18 460.
In China, the Shanghai Composite is down 0.05% to 3 077.
The Dow Jones Industrial Average closed 0.3% lower to 38 571, while the S&P 500 closed 0.11% higher at 5 283.
A technical glitch at the New York Stock Exchange triggered massive swings in the shares of Berkshire Hathaway and Barrick Gold. Trading in at least 60 NYSE-listed stocks were halted due to the volatility, before the exchange fixed the technical issue and trading resumed.
Nvidia shares were up about 4.9% after the company launched its next generation of AI chips.
Shares of Apple, Amazon , Alphabet and Meta also closed higher.
Commodities:
Gold is trading higher by 1.16% at $2 349/oz, while Platinum is lower by 1.55% to $1 020/oz.
Brent crude was 4.22% lower at $77.54 a barrel.
Currencies:
The rand traded at R18.56 against the US Dollar, R23.76 against British Pound and R20.24 against the Euro.
The Euro is firmer against the US Dollar to trade at $1.0905.
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Market Indicators |
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| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 2349.00 | 1.16% | USD/ZAR | 18.56 | Top40 | 71424.87 | 1.36% |
| Platinum | 1020.80 | -1.55% | GBP/ZAR | 23.76 | Dow 30 | 38571.03 | -0.30% |
| Brent | 77.54 | -4.22% | EUR/ZAR | 20.24 | S&P 500 | 5283.40 | 0.11% |
| Copper | 4.65 | 1.08% | EUR/USD | 1.0905 | FTSE | 8262.75 | -0.15% |
| Palladium | 928.13 | 2.22% | USD/JPY | 156.12 | DAX | 18608.16 | 0.59% |
| Iron Ore | 109.95 | -1.05% | BITCOIN | 69050.00 | Shanghai | 3077.07 | -0.05% |
| Source: FACTSET | |||||||