In today's Taking Stock, Boeing has been awarded a US$2.8 billion contract by the US government to develop and produce two satellites under the Evolved Strategic Satellite Communications (ESS) programme, with options for two additional units.
Local Market Commentary
South African equities edged higher on Thursday, with the Top 40 and All Share indices rising 0.23% and 0.34% respectively. Local focus centred on June PMI data, which showed stable private sector activity despite a dip in business confidence to a near four-year low. Meanwhile, BMW South Africa affirmed that current US tariff uncertainties and the pending renewal of the AGOA trade deal will not impact its production plans in the near term, as US-bound exports are not part of its 2025 output strategy.
European Market Commentary
European markets ended Thursday on a positive note, buoyed by gains in banking stocks and optimism around US-EU trade discussions. The STOXX 600 gained 0.5%, with the DAX up 0.6% and the CAC 40 advancing 0.2%. In the UK, services sector activity reached a 12-month high while inflationary pressures in pricing softened, aligning with the Bank of England’s policy outlook. Meanwhile, the EU raised Ukraine’s electricity import cap by 38.5% to support reconstruction efforts, in a move effective through 1 August.
US Market Commentary
US equity benchmarks closed at new record highs on Thursday, driven by strong tech momentum and a positive surprise in jobs data. Nvidia rose 1.3%, pushing its market cap to US$3.89 trillion, closing in on Apple’s historical peak. June payrolls exceeded forecasts at 147,000 new jobs, while unemployment fell to 4.1%, tempering expectations for a July Fed rate cut. Post-close, the House passed a US$3.4 trillion tax-and-spend bill, expected to boost short-term demand but raise long-term fiscal risks.
Asia Market Commentary
Asia-Pacific equities traded mixed on Friday as investors monitored US trade developments ahead of a looming tariff deadline. Alibaba announced plans to raise HK$12 billion via zero-coupon exchangeable bonds, which can convert into shares of Alibaba Health. Japanese household spending surged 4.7% year-on-year in May, surpassing expectations and marking the highest growth since August 2022, while household income saw modest real growth of 0.4%, signalling resilience in domestic consumption.
Currency Market Commentary
The rand firmed on Thursday amid renewed optimism over global trade prospects, helped by a US-Vietnam trade agreement that raised hopes for further deals before the 9 July tariff deadline. The dollar retained its strength on Friday after robust US jobs data reduced the likelihood of near-term Fed rate cuts. The passage of President Trump’s US$3.4 trillion fiscal package also supported the greenback, as attention now shifts to countries still negotiating trade terms ahead of looming US tariff action.
Commodity Market Commentary
Oil prices held steady on Friday, supported by solid US employment figures that suggest the Fed may hold rates steady, though expectations of OPEC+ boosting production by 411,000 barrels per day in August capped gains. US sanctions targeting Iranian oil smuggling networks and Hezbollah-linked entities added geopolitical tension. Meanwhile, gold edged higher and was on track for a weekly gain as fiscal concerns mounted following the passage of the Trump administration’s expansive tax-and-spend package.
Hudaco Industries (HDC) +1.29%
Hudaco Industries posted a robust set of unaudited interim results for the six months to 31 May 2025, overcoming a 2.4% decline in revenue to R3.89 billion with a 19.9% rise in basic earnings per share to 941 cents and a 19.6% lift in headline earnings per share. Operating profit edged up 1.5% to R419 million, and the interim dividend was raised by 7.7% to 350 cents per share, payable on 11 August 2025. NAV per share improved by 6.5% to 12,174 cents, underlining the Group’s financial resilience. On governance, Tlaleng Moabi will replace the retiring Nyami Mandindi on key board committees from 1 October, supporting leadership continuity.
Alphamin Resources (APH) 0.00%
Alphamin Resources delivered a strong Q2 2025 operational update, with tin sales climbing 19% to 4,587 tonnes, despite production dipping slightly to 4,106 tonnes following a phased restart in April. EBITDA guidance was upgraded to US$75 million from US$62 million in Q1, driven by enhanced sales volumes and favourable pricing. Net cash increased by US$52 million to US$50 million, reversing the prior quarter’s net debt. Exploration drilling resumed at Mpama South, with visible mineralisation intersected, reaffirming the company’s growth ambitions.
Boeing (BA) +1.83%
Boeing has been awarded a US$2.8 billion contract by the US government to develop and produce two satellites under the Evolved Strategic Satellite Communications (ESS) programme, with options for two additional units. The satellites, scheduled for initial delivery by 2031, will provide geostationary, persistent coverage for nuclear command and control, supporting the US president and strategic global forces. This contract reinforces Boeing’s positioning in high-security, long-cycle aerospace defence programmes.
Currys Plc (CURY) +7.09%
Currys reported adjusted pre-tax profit of £162 million for FY24, surpassing consensus estimates and marking its third upward revision during the year, driving shares to a 3.5-year high. Growth was led by strong demand in mobile, computing, and AI-driven consumer electronics, with CEO Alex Baldock highlighting a wave of laptop replacements and gaming uptake. The retailer continues to diversify into grooming and pet care, while offsetting inflationary pressures through automation, offshore process relocation, and targeted price increases, yielding £10 million in annual savings. Currys remains in line with expectations for the new financial year.
Do you prefer a full in-depth report you can read offline? Click here to download the full report.
