SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 1.41% higher at the 90 150 level.
Momentum Group Limited delivered strong interim results for the six months ended 31 December 2024, with a 44% increase in normalised headline earnings (NHE) to R3.4 billion. Earnings per share grew by 55% to 244.3 cents, while headline earnings per share rose by the same percentage to 243.6 cents. The company’s performance was driven by improved underwriting results, higher investment returns, and better persistency across various business units. Operating profit increased by 33% to R2.8 billion, supported by strong results from Momentum Insure, Guardrisk, and Metropolitan Life. Investment returns more than doubled compared to the previous period, benefiting from higher market gains and the non-repeat of fair value losses on venture capital funds. Momentum Group declared an interim dividend of 85 cents per share, representing a 42% increase. Additionally, the board approved a further R1 billion share buyback program due to the prevailing discount to embedded value.
SA Economy:
The inflation rate held steady at 3.2% in February 2025, while still staying well below the South African Reserve Bank’s 4.5% midpoint target. The primary drivers of inflation were rising food and non-alcoholic beverage prices, which accelerated to 2.8% from 2.3% in January. However, these increases were partially offset by slower price growth in housing and utilities, which eased to 4.4% from 4.5%, as well as a sharp decline in inflation for personal care and miscellaneous services, which dropped to 1.1% from 5.9%. Transport costs remained in deflationary territory, declining by 0.5% compared to a 0.2% drop in January. Core inflation, which excludes volatile items such as food, non-alcoholic beverages, fuel, and energy, fell to 3.4%, its lowest level since December 2021. Meanwhile, on a monthly basis, consumer prices increased by 0.9%, the highest in a year, up from 0.3% in January. Despite the rise in certain categories, inflation remains contained, keeping the pressure on monetary policy decisions relatively moderate.
Retail sales grew by 7% year-on-year in January 2025 from an upwardly revised 3.2% gain in December 2024. The largest positive contributors to this increase were retailers in textiles, clothing and footwear and leather goods (+10.1%).
Global Economy:
The Euro Area’s consumer price inflation rate eased to 2.3% in February 2025, slightly below the preliminary estimate of 2.4% and down from a six-month high of 2.5% in January.
The People’s Bank of China left its benchmark loan prime rate unchanged. The PBOC left its one-year LPR at 3.6%, while the five-year LPR, which is used to set mortgage rates, was left at 3.1%.
The US Federal Open Market Committee (FOMC), left its benchmark interest rate unchanged in a range of 4.25% to 4.5%, with markets continuing to price in two rate cuts in 2025 (and around a 50% chance of a third). Fed chair Jerome Powell said that inflation could face delays in progress this year, partly due to tariffs from the Trump administration.
Global Company:
The FTSE 100 closed marginally higher at 8 706.
The Hang Seng Index is trading 1.12% lower at 24 494.
Chinese internet and gaming giant Tencent said that profits in the fourth quarter of 2024 surged significantly as the firm accelerates a push into artificial intelligence. Net profit for the three months ended 31 December, totalled 51.3 billion yuan ($7.1 billion), up 90% year-on-year, beating the 44.46 billion yuan expected by analysts in a FactSet poll. Revenue rose 11% from a year earlier to 172.45 billion yuan, supported by solid games and ad revenue, which offset the fintech weakness.
In China, the Shanghai Composite is down 0.02% at 3 425.
The Dow Jones Industrial Average closed 0.91% higher at 41 964, while the S&P 500 closed 1.07% higher at 5 675.
Tech stocks were higher, with Nvidia up 1.8%, Broadcom up 3.7% and Alphabet higher by 2.2%. Tesla rose by 4.7% after Elon Musk’s social network X secured $1 billion in equity funding.
Commodities:
Gold is trading higher by 0.14% at $3 047/oz, while Platinum is higher by 0.06% to $998/oz.
Brent crude was 1.35% higher at $71.33 a barrel.
Currency:
The rand traded at R18.12 against the US Dollar, R23.54 against British Pound and R19.74 against the Euro.
The Euro is slightly weaker against the US Dollar to trade at $1.0894.
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| Market Indicators | |||||||
| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 3047.40 | 0.14% | USD/ZAR | 18.12 | Top40 | 82826.15 | 1.44% |
| Platinum | 998.59 | 0.06% | GBP/ZAR | 23.54 | Dow 30 | 41964.63 | 0.91% |
| Brent | 71.33 | 1.35% | EUR/ZAR | 19.74 | S&P 500 | 5675.20 | 1.07% |
| Copper | 5.12 | 1.76% | EUR/USD | 1.0894 | FTSE | 8706.66 | 0.02% |
| Palladium | 960.00 | -1.03% | USD/JPY | 148.41 | DAX | 23288.06 | 0.40% |
| Iron Ore | 100.55 | 0.35% | BITCOIN | 85552.47 | Shanghai | 3425.60 | 0.02% |
| Source: FACTSET | |||||||