SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.48% lower at the 83 621 level. Over the past 4 weeks, the JSE All-Share Index gained 4.55% and in the last 12 months, its higher 14.84%. Notable performers were Adcock Ingram up 9% Sasol, up 6%, and Shaftsbury Capital, up 4.4%.
Adcock Ingram reported its financial results for the year ending June 30, 2024. Key highlights included a 6% increase in revenue to R9.64 billion and a 10% rise in headline earnings per share (HEPS) to 616.6 cents. Despite a challenging economic environment, trading profit improved by 4% to R1.23 billion. The company declared a final dividend of 150 cents per share, up from 125 cents the previous year, and completed a share buyback of 6 million shares. The business remains strong, with continued focus on expanding its product portfolio.
Gold Fields reported a lower-than-expected net profit for the first half of the year. The company said that net profit came in at $389 million, down from $457.8 million in the same period last year. Revenue rose 15% to $2.21 billion. The market consensus was for $416.9 million in net profit and $2.30 billion in revenue. The company said it faced operational challenges, gold production was hampered by severe weather events in Chile and Australia, as flagged by the company earlier this month, leading to a 20% drop in output to 918 000 ounces, and a cut to full-year guidance for the second time this year. It now expects to produce between 2.05 million and 2.15 million ounces for the year, down from its previous forecast of 2.2 million to 2.3 million ounces, at all-in sustaining costs of between $1 580 and $1 670 an ounce. Despite the setbacks, Gold Fields declared an interim dividend of 300 SA cents per share and is focused on improving safety and operational performance in the second half of the year.
SA Economy:
According to a new report by BankservAfrica, average nominal take-home pay rose 5.9% y/y in July. The improvement was attributed to better business confidence on the back of load-shedding relief, lower inflation, the possibility of lower interest rates ahead, and the election outcome. Take-home pay increased from R15 452 in July 2023 to a more-than-expected R16 358 this year, reflecting the improved business environment.
Global Economy:
The S&P Global UK Composite PMI increased to 53.4 in August, the highest level since April and above market expectations of 52.9.
The S&P Global UK Manufacturing PMI rose to 52.5 in August of 2024 from 52.1 in the previous month, firmly above market expectations of 52.1.
The S&P Global UK Services PMI rose to 53.3 in August of 2024 from 52.5 in the month before, above market expectations of 52.8.
The better-than-expected growth in UK manufacturing and services activity for August seen the British pound rise above $1.31, its highest level since July 2023.
Global Company:
The FTSE 100 closed 0.06% higher at 8 288.
The Hang Seng Index is trading 0.36% lower at 17 571.
In China, the Shanghai Composite is down 0.07% to 2 846.
Chinese search engine giant Baidu reported flat quarterly revenue. Revenue for the second quarter came in at 33.93 billion yuan ($4.67 billion), compared with analysts’ average estimate of 33.55 billion. Net income fell 8% to 7.4 billion yuan, beating the 6.45 billion yuan expected by analysts.
US stocks closed lower as rising yields led to caution ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole symposium later today.
The Dow Jones Industrial Average closed 0.44% lower to 40 712, while the S&P 500 closed 0.9% lower at 5 570.
The tech sector led the declines, with Nvidia shares falling nearly 2% ahead of their earnings report next Wednesday. This report is expected to influence the momentum of tech stocks globally and provide new insights into the sustainability of the AI-driven equity rally that has boosted stocks this year.
Commodities:
Gold is trading lower by 0.25% at $2 495/oz, while Platinum is lower by 1.13% to $955/oz.
Brent crude was 1.43% higher at $76.66 a barrel.
Currencies:
The rand traded at R17.98 against the US Dollar, R23.58 against British Pound and R20.01 against the Euro.
The Euro is slightly weaker against the US Dollar to trade at $1.1127.
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| Market Indicators | |||||||
| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 2495.45 | -0.25% | USD/ZAR | 17.98 | Top40 | 76411.79 | -0.63% |
| Platinum | 955.14 | -1.13% | GBP/ZAR | 23.58 | Dow 30 | 40712.78 | -0.44% |
| Brent | 76.66 | 1.43% | EUR/ZAR | 20.01 | S&P 500 | 5570.64 | -0.90% |
| Copper | 4.16 | -0.96% | EUR/USD | 1.1127 | FTSE | 8288.00 | 0.06% |
| Palladium | 937.58 | -1.91% | USD/JPY | 145.60 | DAX | 18493.39 | 0.24% |
| Iron Ore | 97.35 | -1.18% | BITCOIN | 60957.00 | Shanghai | 2846.88 | -0.07% |
| Source: FACTSET | |||||||