SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.81% higher at the 87 643 level.
Italtile Limited’s voluntary sales update for the five-month period ended 30 November 2024, highlighted modest growth in retail turnover amidst challenging economic conditions. The company experienced subdued consumer confidence during the first half of the period, driven by high interest rates and inflation, which restrained discretionary spending in the building and construction sectors. Improved consumer sentiment emerged in the latter half, influenced by political stability under the Government of National Unity, two interest rate cuts, and lower inflation levels. System-wide retail turnover for the company’s brands, including CTM, Italtile Retail, and TopT, increased by 2.2% compared to the prior period. Manufacturing sales, however, declined by 1.6%, a smaller decrease compared to the 5.9% drop in the previous period. The group’s results for the six months ending December 31, 2024, are scheduled for release on 3 March 2025.
SA Economy:
November consumer inflation data will be released tomorrow, while on Thursday the producer price inflation data for November will be released. The BER expects a slight acceleration in headline consumer inflation to 3.2% year on year in November after it dropped to just 2.8% year on year in October. However, at 3.2% it remains well below the 4.5% target of the Reserve Bank. Core inflation is expected to remain below 4% in November. The third-quarter Quarterly Employment Statistics (QES) is also due out on Thursday.
Global Economy:
China’s Politburo announced a shift in its economic strategy for 2025, making a significant pivot toward a “moderately loose” monetary policy. This change is coupled with promises of more proactive fiscal measures aimed at stimulating domestic consumption and to stabilize property and stock markets.
China’s trade surplus surged to $97.44 billion in November 2024 from $69.45 billion in the same period a year earlier, surpassing expectations of $95 billion. Exports from China grew by 6.7% year-on-year to $312.31 billion in November 2024, softer than the forecasted 8.5%.Imports to China dropped by 3.9%
y-o-y to $214.87 billion in November 2024, steeper than a 2.3% decline in October and against market estimates of a 0.3% growth.
Global Company:
The FTSE 100 closed 0.52% lower at 8 352. Antofagasta, Glencore, Rio Tinto, and Anglo American gained between 2.5% and 3.5%, as optimism over China’s monetary-policy shift lifted sentiment.
The Hang Seng Index is trading 0.73% higher at 20 558. Hong Kong stocks extended their biggest rally in seven weeks, prompted by China’s move to embrace more aggressive stimulus policies to revive growth.
In China, the Shanghai Composite is up 0.1.41% at 3 451.
The Dow Jones Industrial Average closed 0.54% lower at 44 401, while the S&P 500 closed 0.62% lower at 6 052.
US markets declined as Nvidia shares fell due to a Chinese antitrust probe and caution ahead of the inflation data due out tomorrow. Nvidia shares were lower by 2.5%, Meta fell 1.6%.
Apple shares gained 1.6% to a record close. Super Micro Computer rose 0.5% after a Nasdaq filing extension.
Commodities:
Gold is trading higher by 1.23% at $2 669/oz, while Platinum is higher by 0.52% to $938/oz.
Brent crude was 0.42% higher at $71.63 a barrel.
Currencies:
The rand traded at R17.82 against the US Dollar, R22.71 against British Pound and R18.81 against the Euro.
The Euro is slightly firmer against the US Dollar to trade at $1.0555.
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| Market Indicators | |||||||
| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 2669.95 | 1.23% | USD/ZAR | 17.82 | Top40 | 79049.13 | 0.87% |
| Platinum | 938.65 | 0.52% | GBP/ZAR | 22.71 | Dow 30 | 44401.93 | -0.54% |
| Brent | 71.63 | 0.42% | EUR/ZAR | 18.81 | S&P 500 | 6052.85 | -0.62% |
| Copper | 4.24 | 1.18% | EUR/USD | 1.0555 | FTSE | 8352.08 | 0.52% |
| Palladium | 975.25 | 0.79% | USD/JPY | 151.24 | DAX | 20345.96 | -0.19% |
| Iron Ore | 105.95 | 2.78% | BITCOIN | 96684.40 | Shanghai | 3451.17 | 1.41% |
| Source: FACTSET | |||||||