SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.36% lower at the 78 969 level as investors awaited developments regarding the composition of President Ramaphosa’s unity government cabinet.
In a trading update from FirstRand Ltd, the company said that they expect EPS to be between 654.6-699.9c, up +1-8% y/y and HEPS to be between 661.2-687.4c, up +1-5% y/y. ROE will remain within the target range of 18-22%, and the group’s capital and liquidity levels remain strong and above internal targets. FirstRand will announce FY24 results on the 12th of September.
In a nine-month trading update from Growthpoint Properties, the JSE-listed real estate investment trust (REIT) reaffirmed its guidance of a 10%-12% decline in full-year distributable income per share. This decline is attributed to the negative impact of high interest rates, which had been more obvious in the second half of the year. The quality of the industrial portfolio continued to improve through the development of top-tier logistics properties. However, occupancies were lower due to a few large vacancies and unlet space in new strategic speculative developments. Growthpoint plans to continue growing its assets under management and generating diversified returns through Growthpoint Investment Partners and Trading & Development. Additionally, the company is seeking a long-term sustainable solution to the capital requirements of the V&A Waterfront, which is expected to show growth in the next three to five years.
SA Economy:
The annual Producer Price Inflation (PPI) dropped to 4.6% in May 2024, down from a six-month high of 5.1% in the prior month and below market forecasts of 4.8%. Prices slowed down mostly for non-metallic mineral products (3.6% vs 6.6% in April) and metals, machinery, equipment and computing equipment (5.5% vs 6.4%)., while experiencing a decrease in transport equipment (-0.4% vs 4.4%).
The FNB/BER Consumer Confidence Index improved to -12 in the second quarter of 2024, up from -17 in the preceding period. Although still in negative territory, this marks the best reading since Q4 2022. The improvement is largely driven by reduced power outages and declining fuel and food prices.
The country recorded foreign direct investment inflows of R24.4 billion in the first quarter of 2024, compared to a downwardly revised R2.5 billion in the previous three-month period, according to the latest South African Reserve Bank’s Quarterly Bulletin.
Global Economy:
The British economy expanded 0.7% on quarter in the first three months of 2024, slightly higher than initial estimates of 0.6%
The consumer confidence indicator in the Euro Area rose by 0.3 points from the previous month to -14.0 in June 2024, the highest since February 2022 and in line with preliminary estimates.
The industry confidence indicator in the Euro Area worsened slightly to -10.1 in June 2024 from -9.9 in May, compared to forecasts of -9.6.
The services sentiment indicator in the Eurozone edged down to 6.5 in June of 2024 from the upwardly revised 6.8 in the earlier month, marginally beating market expectations of 6.4.
The economic sentiment indicator in the Euro Area edged down to 95.9 in June 2024 from an upwardly revised 96.1 in May and below forecasts of 96.2.
US Q1 GDP was revised higher to 1.4% from 1.3%, despite expectations that it will be left unchanged. Consumer Spending was revised down to 1.5% while PCE Prices and core were revised fractionally higher to 3.4%, and 3.7%, respectively.
US jobless claims eased slightly to 233 000 from 239 000, below the expected 236 000, but remains elevated compared to just a month ago.
Global Company:
The FTSE 100 closed 0.56% lower at 8 179.
The Hang Seng Index is trading 0.6% higher at 17 828. For the month, the benchmark has lost 2%, its first such loss in five months as optimism over stimulus measures from China was seen cooling in June, amid a series of mixed economic data from the country.
In China, the Shanghai Composite is up 1.17% to 2 980.
The Dow Jones Industrial Average closed 0.09% higher to 39 164, while the S&P 500 closed 0.09% higher at 5 482.
US shares closed just above the flatline although sentiment remained lackluster throughout the session amid caution. The major averages opened lower but strength in the tech sector kept the Nasdaq Composite Index positive. The S&P 500 Index and the Dow Jones Industrial Average traded mostly below the flat line before recovering by the close of the session. Consumer discretionary stocks found strong buying interest. IT and communications stocks rose modestly.
Commodities:
Gold is trading higher by 1.12% at $2 324/oz, while Platinum is lower by 0.93% to $998/oz.
Brent crude was 1.63% higher at $85.64 a barrel. The price of Brent crude oil rose, nearing a two-month high as supply concerns due to escalating conflict in the Middle East outweighed a surprise increase in US stockpiles. Tensions between Israel and Lebanon’s Hezbollah have heightened, raising fears of a broader conflict involving major oil producer Iran.
Currencies:
The rand traded at R18.48 against the US Dollar, R23.35 against British Pound and R19.76 against the Euro.
The Euro is slightly weaker against the US Dollar to trade at $1.0690.
.
| Market Indicators | |||||||
| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 2324.78 | 1.12% | USD/ZAR | 18.48 | Top40 | 72287.12 | -0.38% |
| Platinum | 998.48 | -0.93% | GBP/ZAR | 23.35 | Dow 30 | 39164.06 | 0.09% |
| Brent | 85.64 | 1.63% | EUR/ZAR | 19.76 | S&P 500 | 5482.87 | 0.09% |
| Copper | 4.37 | 0.46% | EUR/USD | 1.0690 | FTSE | 8179.68 | -0.56% |
| Palladium | 946.65 | 1.65% | USD/JPY | 160.95 | DAX | 18210.55 | 0.30% |
| Iron Ore | 106.70 | 0.33% | BITCOIN | 61653.00 | Shanghai | 2980.65 | 1.17% |
| Source: FACTSET | |||||||