SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 3.5% higher at the 79 749 level.
The packaging, printing and publishing company Novus Holdings, reported a big turnaround for the year ended 31 March 2024, as headline earnings per share increased to 78.8 cents from a 7.4 cents loss per share at the same time a year before. The company said that revenue increased by 24% to R3.96 billion. Earnings before interest tax depreciation and amortisation increased to R628.8 million from R131.7 million. Operating profit increased to R393.5 million from R6.9 million. A dividend of 50 cents per share was declared. Novus shares rose 8.1% to R5.95 per share.
In a trading update from Thungela Resources, the company reported that it expects half-year profit to fall by as much as 69% due to lower prices amid persistent freight rail problems. Headline earnings per share (HEPS) is seen dropping by between R7 and R10 for the six months ended 30th June, down from R22.46 previously. The decline in earnings was also primarily attributed to lower coal prices, driven by a decrease in winter energy demand from Europe and Asia. Thungela said that its strategy to diversify away from South Africa by acquiring the Ensham mine in Australia in 2023 was proving successful, with the mine’s production surpassing initial expectations.
SA Economy:
President-Elect Cyril Ramaphosa will be inaugurated as President during a public swearing-in ceremony at the Union Buildings in Tshwane. S&P Global Ratings agency stated that the new government’s agenda “aims to prioritize structural reforms to address basic infrastructure and service delivery shortfalls and weak investments while gradually narrowing fiscal deficits. The election outcome is broadly favorable for the economic and fiscal outlook.”
After three years of evaluation, the South African National Roads Agency (SANRAL) has withdrawn a multibillion-rand tender for upgrading a section of National Route 2 in KwaZulu-Natal. Initially issued in January 2021, the project attracted bids ranging from R1.9 billion to R3.7 billion. SANRAL has now deemed these prices to be commercially unworkable.
Global Economy:
The annual inflation rate in the UK slowed to 2% in May 2024, from 2.3% in April and in line with forecasts. The inflation returned to the Bank of England’s 2% target, led by a slowdown in cost of food (1.7% vs 2.9%).The annual core inflation rate slowed to 3.5% and matching market forecasts.
The ZEW Indicator of Economic Sentiment for the Euro Area surged by 4.3 points to 51.3 in June of 2024, the highest since July of 2021, and firmly above market expectations of 47.8.
The ZEW Indicator of Economic Sentiment, which tracks economic expectations for the next six months, rose to 47.5 in June from 47.1 in May, below a forecast of 50.0 in a consensus of economists. While the 0.4 rise was smaller than the 4.2, 11.2 and 11.8 jumps of the prior three months, it nevertheless marks the 11th straight month of more upbeat sentiment, and the highest rate since February 2022.
US retail sales came in softer-than-expected. Headline retail sales rose 0.1% MoM, up from the prior
-0.2% which was revised lower from 0.0%. The core measure (ex-autos & parts) declined by 0.1% despite expectations for a 0.2% gain, while the control metric rose 0.4%, in line with expectations but the prior was revised down to -0.5% from -0.3%.
Global Company:
The FTSE 100 closed 0.6% higher at 8 191.
The Hang Seng Index is trading 2.19% higher at 18 303. Hong Kong stocks traded higher as sentiment improved following the announcement of financial market reforms aimed at revamping the technology board. The reforms focus on offerings, underwritings, mergers, and incentives to promote tech innovation.
In China, the Shanghai Composite is down 0.39% to 3 018.
The Dow Jones Industrial Average closed 0.15% higher to 38 834, while the S&P 500 closed 0.25% higher at 5 487.
Nvidia shares rose 3.5% to $135 per share, giving it a market value of about $3.34 trillion. That pushed the semiconductor company past Microsoft and Apple to be the world’s most valuable company. With a 0.4% slide yesterday, Microsoft’s market cap stood at around $3.32 trillion.
Commodities:
Gold is trading higher by 0.27% at $2 327/oz, while Platinum is lower by 0.03% to $976.20/oz.
Brent crude was 1.36% higher at $87.75 a barrel.
Currencies:
The rand traded at R18.04 against the US Dollar, R22.93 against British Pound and R19.37 against the Euro.
The Euro is slightly weaker against the US Dollar to trade at $1.0736.
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Market Indicators |
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| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 2327.17 | 0.27% | USD/ZAR | 18.04 | Top40 | 72863.74 | 3.22% |
| Platinum | 976.20 | -0.03% | GBP/ZAR | 22.93 | Dow 30 | 38834.86 | 0.15% |
| Brent | 84.75 | 1.36% | EUR/ZAR | 19.37 | S&P 500 | 5487.03 | 0.25% |
| Copper | 4.51 | 1.33% | EUR/USD | 1.0736 | FTSE | 8191.29 | 0.60% |
| Palladium | 889.51 | -0.56% | USD/JPY | 157.79 | DAX | 18302.51 | 1.28% |
| Iron Ore | 108.00 | -0.14% | BITCOIN | 65461.00 | Shanghai | 3018.45 | -0.39% |
| Source: FACTSET | |||||||