In today's Taking Stock, Johnson & Johnson shares dropped more than 5% on Tuesday after a U.S. bankruptcy judge rejected its $10 billion settlement proposal.
Local Market Commentary
The local Top 40 index rose 1.43% to around 82,572.8 points, while the All Share index gained 1.48% to 89,950.8. Despite ongoing weakness in manufacturing, sentiment improved slightly as the Absa PMI increased to 48.7 in March from 44.7 in February, though it remained in contraction. Lawmakers recommended scrapping the proposed VAT hike and adjusting income tax brackets for inflation, urging the Treasury to find alternative revenue solutions within 30 days. Meanwhile, South Africa plans to engage U.S. authorities on potential auto tariffs, which could impact its $2 billion vehicle exports. Preliminary SARS data showed tax collections for the past fiscal year reached R1.855 trillion ($101.02 billion), up over 6% year-on-year, with strong contributions from finance, community, wholesale, and construction sectors.
European Market Commentary%
European shares rebounded on Tuesday, with the STOXX 600 gaining 1.1% after hitting a two-month low, as markets stabilised ahead of the April 2 deadline for U.S. reciprocal tariffs. Investor sentiment improved amid early signs of recovery in eurozone manufacturing and a moderation in inflation, with core inflation slowing more than anticipated. Meanwhile, Italy is reportedly considering raising ownership thresholds that trigger mandatory takeover bids for public companies.
U.S. Market Commentary
The S&P 500 and Nasdaq Composite closed higher on Tuesday after a volatile session, as investors awaited clarity on upcoming U.S. tariff measures set to be unveiled by the Trump administration. While the announcement may ease some market uncertainty, broader concerns over economic and policy direction persist. Johnson & Johnson was the worst performer on the S&P 500, dropping 7.6% after a U.S. bankruptcy judge rejected its $10 billion proposal to settle talc-related lawsuits, dragging the healthcare sector down 1.8%.
Asia Market Commentary
Asia-Pacific markets mostly declined as investors awaited new U.S. tariff measures from President Trump. Thailand’s commerce ministry warned that potential 25% tariffs on semiconductor exports could cost the country between $7 billion and $8 billion. Meanwhile, South Korea’s inflation rose to 2.1% year-on-year in March, exceeding both February’s 2% and economists’ expectations, while core inflation increased 1.9%.
Currency Market Commentary
The South African rand weakened on Tuesday after a parliamentary committee proposed further budget revisions, adding to fiscal uncertainty. Meanwhile, the dollar edged higher, with most major currencies trading in tight ranges as investors awaited details on U.S. tariff measures expected later today. The yen gained against the dollar after U.S. economic data pointed to softness in manufacturing and employment ahead of the anticipated trade policy announcement.
Commodity Market Commentary
Gold extended its gains this morning after reaching a record high in the previous session, as investors sought safe-haven assets amid concerns over impending U.S. reciprocal tariffs. Meanwhile, oil prices stabilised following a decline, with markets wary that new U.S. trade measures—set to be announced later today—could escalate global tensions and weigh on crude demand. The White House confirmed that President Trump will introduce fresh tariffs but provided no specifics on their scale or scope. For weeks, Trump has framed April 2 as a pivotal moment for his trade policy, with new duties expected to disrupt global markets.
Mondi plc (MNP) +1.15%
Mondi plc has successfully acquired the Western Europe Packaging Assets of Schumacher Packaging, enhancing its corrugated packaging operations in Germany, Benelux, and the UK. The acquisition adds over 1 billion square meters of capacity, including two state-of-the-art mega box plants in Germany. This expansion strengthens Mondi's presence in Western Europe and offers significant growth potential, particularly in the eCommerce and FMCG sectors. CEO Andrew King highlighted the vertical integration opportunities and the potential to introduce sustainable packaging solutions to a broader customer base.
Renergen Limited (REN) +11.62%
Renergen’s Fiscal Q4 2025 saw notable developments, including the first helium export and sale from its facility. LNG production rose by 22%, reaching 1,371 tons, up from 1,124 tons in the previous period. The Springbok Solar dispute remains ongoing, with judgment reserved after a court hearing on 20 February 2025 regarding Tetra4’s production rights. The company is close to finalising its liquidity plan to complete Phase 1C. In exploration, Renergen integrated seismic, aeromagnetic, and gravity data to refine drilling targets, laying a solid foundation for future drilling campaigns. The company continues to work on a comprehensive liquidity solution to complete Phase 1 and ramp up the facility to its nameplate capacity.
iOCO Limited (IOC) +0.32%
iOCO Limited reported significant growth in its HY2025 financial results, with EBITDA rising by 159.3%, from R97 million in HY2024 to R252 million in HY2025. Headline earnings per share (HEPS) and earnings per share (EPS) both stood at 19 cents, a marked improvement from a loss per share in HY2024. Cash generated from operations increased to R302 million, up from R201 million in the prior period. Despite a 6.4% decrease in revenue to R2.7 billion, the company achieved a 2.8% rise in gross profit, improving its gross margin from 27% to 30%. The results reflect the benefits of strategic restructuring and diversification, positioning the Group for further growth and cost efficiencies.
Johnson & Johnson (JNJ) -7.59%
Johnson & Johnson shares dropped more than 5% on Tuesday after a U.S. bankruptcy judge rejected its $10 billion settlement proposal to resolve over 60,000 lawsuits alleging its talc-based products caused ovarian cancer. This marks the third failed attempt by J&J to use bankruptcy proceedings to settle the claims. The company stated it will return to the traditional legal system to contest what it calls “meritless” claims and does not intend to appeal the ruling. J&J also warned investors that plaintiffs should not expect a similar settlement outside of bankruptcy, as critics argue the company is not in financial distress and should not use bankruptcy protections.
Toyota Motor Corporation (7203) +0.55%
Toyota's North American unit reported a 1% increase in first-quarter U.S. vehicle sales, driven by strong demand for its pickup trucks and luxury models. The automaker's sales rose to 570,269 units, up from 565,098 units in the same period last year.
General Motors Company (GM) +0.49%
General Motors reported a 17% increase in first-quarter U.S. sales, driven by strong demand for its pickup trucks and affordable crossover SUVs. Sales of the Chevrolet Trax SUV surged 57%, likely reflecting consumer anticipation ahead of President Trump's tariffs on auto imports. Overall, GM's sales reached 693,363 units in the three months to March, up from 594,233 units during the same period last year.
Visa Inc. (V) -1.17%
Visa has reportedly offered Apple approximately $100 million to take over its credit card partnership from Mastercard, according to sources cited by the Wall Street Journal on Tuesday. The offer represents an aggressive bid to secure the Apple Card, with an upfront payment typically reserved for the largest card programmes.
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