SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.29% higher at the 84 026 level.
Spur Corporation released its financial results for the year ending June 30, 2024, showcasing strong growth despite economic challenges. The group’s revenue increased by 14.1% to R3.47 billion, supported by an 11.5% rise in franchised restaurant turnovers, which reached R10.62 billion. Earnings per share grew by 10.7% to 287.92 cents, and headline earnings per share rose by 11.4% to 291.02 cents. The company expanded its restaurant footprint significantly, adding 37 new outlets through its acquisition of a 60% stake in the Doppio Collection. Looking ahead, Spur plans to open 47 new restaurants in South Africa and 13 internationally during the 2025 financial year. The company also declared a final dividend of 118 cents per share, bringing the total dividend for the year to 213 cents, a 10.9% increase from the previous year.
Curro Holdings released its financial results for the six months ended June 30, 2024, showing solid performance and growth. The company reported an 8.3% increase in revenue to R2.59 billion, up from R2.39 billion in the same period last year. This growth was driven by a slight increase in learner numbers, up 0.5% to 72 758. The company’s earnings also improved significantly. Recurring headline earnings per share (RHEPS) increased by 16.2% to 40.2 cents, from the 34.6 cents in the prior corresponding period and vs prior guidance of between 38.4-42.0 cents. The board resolved not to declare a dividend for the six months ended 30 June 2024, in line with the board’s policy to distribute 20% of recurring headline earnings as an annual dividend.
SA Economy:
The annual inflation rate fell for the second month to 4.6% in July 2024, down from 5.1% in the prior month. The decline was driven by lower annual rates in several categories, notably food and non-alcoholic beverages (4.5% vs 4.6% in June), transport (4.2% vs 5.5%), and housing and utilities (5.3% vs 5.5%). The annual core inflation rate, which excludes volatile items such as food, non-alcoholic beverages, fuels, and energy, eased to 4.3% in July, down from 4.5% the previous month. On a monthly basis, consumer prices rose by 0.4% in July, following a 0.1% increase in June. The data aligns with the SA Reserve Bank’s goal of stabilising inflation at its 4.5% target midpoint and supports expectations for monetary policy easing in the coming months.
Global Economy:
The US Federal Open Market Committee (FOMC) July minutes showed that a vast majority of Fed officials see the case for a rate cut in September if data continued to come in as expected. Several participants said that the recent progress on inflation and increases in the unemployment rate provided a ‘plausible case’ for a 25bps cut.
The US Labor Department payrolls data were revised lower by 818 000, suggesting that job growth was not as strong as previously thought between April 2023 and March 2024. This means that monthly job growth of 178 000 instead of 246 000 initially reported.
Global Company:
The FTSE 100 closed 0.12% higher at 8 283. Mining shares led the gains, with Rio Tinto, Fresnillo and Anglo American were all higher by 2%.
The Hang Seng Index is trading 0.56% higher at 17 489. Led higher by gains in financials and tech stocks. Xiaomi Corp.’s shares rallied more than 8% after reporting better-than-expected second-quarter results.
In China, the Shanghai Composite is down 0.03% to 2 855.
The Dow Jones Industrial Average closed 0.14% higher to 40 890, while the S&P 500 closed 0.42% higher at 5 620.
Target Corporation raised its 2024 profit forecast and posted its first quarterly increase in same-store sales in over a year. This positive performance sent the retailer’s shares closing higher by 11.2%. However, Macy’s lowered its annual net sales forecast, causing shares of the department store chain to slide 12.9%.
Commodities:
Gold is trading lower by 0.62% at $2 501/oz, while Platinum is higher by 1.19% to $965.95/oz.
Brent crude was 1.39% lower at $75.56 a barrel.
Currencies:
The rand traded at R17.89 against the US Dollar, R23.41 against British Pound and R19.93 against the Euro.
The Euro is slightly firmer against the US Dollar to trade at $1.1140.
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| Market Indicators | |||||||
| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 2501.75 | -0.62% | USD/ZAR | 17.89 | Top40 | 76894.08 | 0.33% |
| Platinum | 965.95 | 1.19% | GBP/ZAR | 23.41 | Dow 30 | 40890.49 | 0.14% |
| Brent | 75.56 | -1.39% | EUR/ZAR | 19.93 | S&P 500 | 5620.85 | 0.42% |
| Copper | 4.20 | 0.71% | EUR/USD | 1.1140 | FTSE | 8283.43 | 0.12% |
| Palladium | 955.50 | 2.46% | USD/JPY | 145.15 | DAX | 18448.95 | 0.50% |
| Iron Ore | 98.50 | 0.10% | BITCOIN | 60715.00 | Shanghai | 2855.68 | -0.03% |
| Source: FACTSET | |||||||