SA Company News:
The Johannesburg Stock Exchange All-Share Index closed flat at the 83 783 level.
Precious metals gained 2.92%, resources rose by 1.51% and industrial metals rose 0.59%. On the other hand, retailers seen a decline of 0.96%, financials dropped by 0.59%, banks were down 0.48%, industrials decreased by 0.35%, and food producers fell by 0.15%.
DRDGOLD has released its financial results for the year ending June 30, 2024, showing a mixed performance. The company reported a 14% increase in revenue to R6.24 billion, primarily driven by a 20% rise in the rand gold price. However, this revenue boost was offset by a significant 14% increase in cash operating costs, which rose to R4.2 billion. Operating income came in at R2.08 billion, +14% vs year-ago of R1.82 billion. Production challenges also impacted the results, with DRDGOLD missing its production guidance, achieving 160 850 ounces of gold compared to the forecasted 165 000 to 175 000 ounces. The company declared a final dividend of 20 cents per share.
SA Economy:
Consumer confidence rose in July, as reflected by an increase in both new and used car sales. This is because a higher volume of new car purchases often leads to more trade-ins, increasing the supply of quality used cars, which can help meet demand and stabilize prices in the used car market. Additionally, the availability of newer models in the used car market can attracted a broader range of buyers, further boosting sales. Used car sales surged by 14% month on month in July, according to AutoTrader data, with 31 707 units sold, nearly 4 000 more than in June. These sales generated a total value of just under R13 billion. The average price of a used car in July rose slightly by 0.4% to R409,238. Typically, this price would get buyers a five-year-old vehicle with an average mileage of 75 227 kilometers.
Global Economy:
Investors now look ahead to Fed Chair Powell’s speech at the Jackson Hole Symposium on Friday for further guidance on the economy. Markets expect a 100bps in rate cuts by the US central bank in their three remaining decisions this year, amid cooling inflationary pressures and weakening labor market conditions. However, opinions are divided on whether the Fed will implement a 25 or 50 bps cut at its September meeting, following a strong retail sales data in July.
Global Company:
The FTSE 100 closed 1.01% lower at 8 273.
The Hang Seng Index is trading 1.08% lower at 17 322.
JD.com is lower by around 11% after Bloomberg reported that Walmart Inc was planning to sell its stake in the e-commerce company for $3.74 billion. JD Health International Inc, which is a unit of the e-commerce firm, fell nearly 4%.
In China, the Shanghai Composite is down 0.45% to 2 853.
The Dow Jones Industrial Average closed 0.15% lower to 40 834, while the S&P 500 closed 0.2% lower at 5 597.
Lowe’s shares fell 1.2% after missing revenue expectations and lowering its profit outlook, despite surpassing Q2 profit estimates. Boeing declined 4.2% due to grounding its 777x test fleet after discovering structural cracks. On the other hand, Palo Alto Networks surged 7.1% on strong Q4 results and positive guidance, and Eli Lilly gained 3% following favorable results for its weight-loss drug, Zepbound was shown to drastically cut the risk of developing Type 2 diabetes in pre-diabetic adults.
Commodities:
Gold is trading higher by 0.6% at $2 517/oz, while Platinum is lower by 1.07% to $954/oz.
Brent crude was 0.03% lower at $76.61 a barrel.
Currencies:
The rand traded at R17.81 against the US Dollar, R23.20 against British Pound and R19.81 against the Euro.
The Euro is firmer against the US Dollar to trade at $1.1117.
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| Market Indicators | |||||||
| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 2517.15 | 0.60% | USD/ZAR | 17.81 | Top40 | 76637.97 | -0.04% |
| Platinum | 954.45 | -1.07% | GBP/ZAR | 23.20 | Dow 30 | 40834.97 | -0.15% |
| Brent | 76.61 | -0.03% | EUR/ZAR | 19.81 | S&P 500 | 5597.12 | -0.20% |
| Copper | 4.17 | 0.24% | EUR/USD | 1.1117 | FTSE | 8273.32 | -1.01% |
| Palladium | 932.00 | 0.64% | USD/JPY | 145.60 | DAX | 18357.52 | -0.35% |
| Iron Ore | 98.40 | 4.32% | BITCOIN | 59368.00 | Shanghai | 2853.94 | -0.45% |
| Source: FACTSET | |||||||