SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 1.93% higher at the 82 765 level.
AECI reported its financial results for the half year ending 30 June 2024. Revenue for the six months decreased by 4% to R17.58 billion, with headline earnings per share (HEPS) falling by 57% to 260 cents. In a recent trading statement, management said that it expects headline earnings per share (HEPS) to decrease between 54% and 60% y/y. Profit from operations declined by 36% to R818 million, primarily due to a R450 million investment spend on strategy execution and an additional R204 million investment spend mainly resulting from statutory shutdowns. No interim dividend was declared.
In a trading statement from the Altron Group, the company said that its earnings per share (EPS) and headline earnings per share (HEPS) are expected to be at least 20% higher compared to the prior period.
However, EBITDA and operating profit are expected to be lower due to non-recurring project expenses related to historical contracts that have now been closed and some project delays. Altron Security’s performance improved following corrective actions taken in the second half of FY24, with anticipated modest growth in EBITDA and operating profit.
SA Economy:
The country’s trade surplus increased slightly to R24.2 billion in June 2024, up from a revised R20 billion in the previous month. This was the largest trade surplus since May 2022. The rise was due to a 6.5% month-over-month decline in imports, which fell to R147.7 billion, while exports decreased at a slower rate of 3.4% to around R172 billion.
Global Economy:
The annual inflation rate in the Euro Area unexpectedly increased to 2.6% in July 2024, up from 2.5% in June, according to preliminary estimates. This rise was contrary to forecasts predicting a slowdown to 2.4%. The cost of energy saw a significant increase, rising by 1.3% compared to a 0.2% increase in June. Additionally, the cost for non-energy industrial goods rose at a faster rate, at 0.8% compared to 0.7% previously.
Hong Kong’s economy expanded 3.3% year-on-year in the second quarter of 2024, accelerating from a revised 2.8% rise in the previous period and surpassing forecasts of a 2.7% increase.
The US Federal Open Market Committee (FOMC) left interest rates unchanged at a range of 5.25-5.50% but made adjustments to its statement that suggest the possibility of an interest rate cut in September.
Global Company:
The FTSE 100 closed 1.12% higher at 8 367.
Barclays reported a smaller-than-expected 9% decline in first-half pretax profit, thanks to a strong performance from its investment bank, which offset falling revenues in other areas. The bank’s profit for the six months ending June was £4.2 billion, exceeding the analysts’ average forecast of £3.8 billion but down from £4.6 billion in the same period last year.
Hong Kong stocks are trading close to the flatline after Chinese PMI data released yesterday showed China’s manufacturing activity unexpectedly contracted in July, reigniting growth concerns.
The Hang Seng Index is trading 0.1% higher at 17 364.
In China, the Shanghai Composite is up 0.07% to 2 940.
The Dow Jones Industrial Average closed 0.24% higher to 40 842, while the S&P 500 closed 1.55% higher at 5 522.
For July, the Dow rose 4.4%, making its best month of the year and the S&P 500 rose 1.1% for the month.
Advanced Micro Devices (AMD) raised its outlook for AI GPU revenue, which helped boost Nvidia and other AI-linked plays.
Meta Platforms second-quarter results that beat analysts’ estimates. For the three months ended 30 June, the company reported earnings of $5.16 per share on revenue of $39.07 billion, beating estimates $4.7 and $38.26 billion, respectively. Looking ahead to Q3, the company guided for total revenue to be in the range of $38.5 billion to $41 billion or $39.75 billion at the midpoint, beating estimates of $39.09 billion.
Commodities:
Gold is trading higher by 1.17% at $2 446/oz, while Platinum is higher by 0.51% to $975.50/oz.
Brent crude was 2.53% higher at $81.38 a barrel.
Currencies:
The rand traded at R18.24 against the US Dollar, R23.44 against British Pound and R19.75 against the Euro.
The Euro is slightly weaker against the US Dollar to trade at $1.0828.
.
| Market Indicators | |||||||
| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 2446.74 | 1.17% | USD/ZAR | 18.24 | Top40 | 75661.56 | 2.07% |
| Platinum | 975.50 | 0.51% | GBP/ZAR | 23.44 | Dow 30 | 40842.79 | 0.24% |
| Brent | 81.38 | 2.53% | EUR/ZAR | 19.75 | S&P 500 | 5522.30 | 1.55% |
| Copper | 4.18 | 1.20% | EUR/USD | 1.0828 | FTSE | 8367.98 | 1.12% |
| Palladium | 929.05 | 2.50% | USD/JPY | 149.94 | DAX | 18508.65 | 0.53% |
| Iron Ore | 101.80 | 1.18% | BITCOIN | 64130.00 | Shanghai | 2940.74 | 0.07% |
| Source: FACTSET | |||||||