SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.68% lower at the 78 956 level.
Bytes Technology higher by 4%, after posting solid results due to demand for its IT services.
Investec has delivered a strong financial performance for the year ended 31 March 2024 . Revenue increased to £2.09 billion from £1.99 billion. Earnings per share for the year ended March were up 13.4% at 78.1 pence, while adjusted operating profit grew 8% to £884.5 million. In rand terms, growth in adjusted EPS was 31% and adjusted operating profit 24.6%. CEO Fani Titi said that revenue momentum is expected to continue in 2025, underpinned by book growth, stronger client activity levels and success in our client acquisition strategies, but partly offset by expected cuts in interest rates.
In a trading update from Bidcorp, the company reported a solid set of results with credit given to strong performance in European, Australian, New Zealand, and South African businesses. The company reported revenue growth of 24% in rand and 11% in constant currency, with approximately 5% to 6% volume growth. The company’s trading profit increased by 21% in rand terms and 9% in constant currency terms. Bidcorp acknowledged that it operates in a challenging environment, with many countries experiencing headwinds.
SA Economy:
Trade, industry & competition minister, Ebrahim Patel announced his retirement from cabinet. Patel’s decision to step down after 15 years as a key figure in economic policy comes just months after Pravin Gordhan, his counterpart in the public enterprises department, announced that he would not be returning to the national executive. It remains uncertain how businesses will react to Patel’s departure or what impact a new appointment as head of trade and industry will have on economic policy.
Global Economy:
Retail sales in the UK declined 2.3% month-over-month in April 2024, following a downwardly revised 0.2% fall in March and much worse than forecasts of a 0.4% drop.
The S&P Global UK Services PMI fell to 52.9 in May of 2024 from the one-year high of 55 in the earlier month, missing market expectations of 54.7.
The S&P Global Flash UK Manufacturing PMI increased to 51.3 in May 2024, compared to 49.1 in April and beating forecasts of 49.5.
The S&P Global UK Composite PMI dropped to 52.8 in May, below the expected 54, indicating a slight decline from April’s 54.1.
The HCOB Eurozone Services PMI was at 53.3 in May of 2024, remaining unchanged from the near-one-year high in the previous month, and roughly in line with market expectations of 53.5.
The HCOB Eurozone Composite PMI rose to 52.3 in May 2024, the highest in a year, compared to 51.7 in April and beating forecasts of 52.
The HCOB Eurozone Manufacturing PMI increased to 47.4 in May 2024, the highest in 15 months, up from 45.7 in April and above market expectations of 46.2.
Hotter-than-expected US PMI survey fueled concerns about prolonged higher interest rates. The S&P Global US Composite PMI surged to 54.4 in May, up from April’s 51.3, marking the highest level since April 2022 and beating market expectations of 51.1.
The S&P Global US Manufacturing PMI went up to 50.9 in May 2024, rebounding from 50 in April, and beating forecasts of 50,
The S&P Global US Services PMI surged to 54.8 in May of 2024 from 51.3 in the previous month, well above market expectations of 51.3. The data showed strong economic momentum further delaying the prospect of Fed rate cuts this year. The market is now pricing a possible cut only in November 2024.
Global Company:
The FTSE 100 closed 0.37% lower at 8 339 as investors weighed the implications of the upcoming 4th of July general election.
The Hang Seng Index is trading 1.55% lower at 18 576.
Alibaba Group Holding Limited said that it sold $4.5 billion worth of convertible bonds, securing capital needed to buy back shares and invest in businesses including artificial intelligence.
In China, the Shanghai Composite is down 0.41% to 3 103.
The Dow Jones Industrial Average closed 1.56% lower to 39 063, while the S&P 500 closed 0.28% lower at 5 267.
Boeing shares fell 7.6% to close at $172.21. The company said that it has stopped delivering airplanes to customers in China. The halt stems from requests by the Civil Aviation Administration of China for additional information regarding the batteries used in cockpit voice recorders.
Commodities:
Gold is trading lower by 1.32% at $2 337/oz, while Platinum is lower by 0.55% to $1 023.55/oz.
Brent crude was 0.09% lower at $81.08 a barrel.
Currencies:
The rand traded at R18.49 against the US Dollar, R23.46 against British Pound and R19.98 against the Euro.
The Euro is slightly weaker against the US Dollar to trade at $1.0808.
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Market Indicators |
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| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 2337.05 | -1.32% | USD/ZAR | 18.49 | Top40 | 72573.50 | -0.67% |
| Platinum | 1023.55 | -0.55% | GBP/ZAR | 23.46 | Dow 30 | 39063.26 | -1.56% |
| Brent | 81.08 | -0.09% | EUR/ZAR | 19.98 | S&P 500 | 5267.84 | -0.74% |
| Copper | 4.80 | 0.83% | EUR/USD | 1.0808 | FTSE | 8339.23 | -0.37% |
| Palladium | 976.65 | -1.25% | USD/JPY | 157.09 | DAX | 18691.32 | 0.06% |
| Iron Ore | 120.75 | 0.54% | BITCOIN | 67161.00 | Shanghai | 3103.76 | -0.41% |
| Source: FACTSET | |||||||