Google wins antitrust ruling, shares jump ~7% in after-hours trading

South Africa
South African equities fell on Tuesday, with the Top 40 down 0.61% to 93,697.2 points and the All Share down 0.72% to 101,167.2 points. Investor focus turned to the Energy Intensive Users Group’s call for Nersa to reopen Eskom’s tariff determination after a R54bn miscalculation that could trigger further hikes. The regulator’s lack of transparency has drawn criticism, especially given a prior R40bn settlement error. Meanwhile, the financially strained Road Accident Fund suffered a legal setback, with the High Court rejecting its bid for a moratorium on claim executions, raising concerns over its solvency.

Europe
European equities retreated to a three-week low, with the STOXX 600 down 0.6% as higher bond yields weighed on rate-sensitive sectors. Nestlé fell 1% after CEO Laurent Freixe was ousted for failing to disclose a workplace relationship, adding instability to the group already facing challenging consumer conditions and tariff headwinds. Eurozone inflation came in at 2.1% in August, slightly above expectations and the ECB’s target, reinforcing policymakers’ cautious stance. ECB board member Isabel Schnabel signalled that interest rates should remain steady despite persistent price pressures.

United States
Wall Street declined as rising Treasury yields and trade concerns overshadowed sentiment at the start of September, historically a weak month for equities. Nvidia lost 2% while Amazon and Apple shed 1%, with investors taking profits after a strong August. Markets also reacted to a U.S. Court of Appeals ruling that most of Trump’s global tariffs were unlawful, raising fiscal concerns if refunds are required. The S&P 500 eased after reaching record highs above 6,500, with investors now awaiting Friday’s jobs report to gauge Fed policy direction.

Asia
Asian markets traded mixed as investors digested higher global yields and trade uncertainty. China was in focus after President Xi Jinping marked the 80th anniversary of World War II’s end with a major military parade, attended by 26 global leaders. Xi warned of a world facing “peace or war” choices, drawing a response from U.S. President Trump on social media. In Australia, the ASX 200 dropped 1.1% despite stronger-than-expected Q2 GDP growth of 1.8% year-on-year, its fastest pace since September 2023, beating consensus expectations of 1.6%.

Commodities
Gold extended its rally to a record high, supported by expectations of U.S. rate cuts and safe-haven demand amid equity and bond market volatility. Oil prices steadied after hitting a one-month peak, with Brent trading near $69 and WTI close to $66, as traders weighed potential OPEC+ supply decisions and heightened geopolitical risks. U.S. President Trump flagged possible additional sanctions on Russia if Ukraine talks stall and reaffirmed higher tariffs on India over Russian oil purchases, adding to uncertainty around global energy markets.

Currencies
The rand weakened alongside most major currencies as the dollar firmed on higher Treasury yields ahead of key U.S. economic data. The dollar index rose 0.5% to 98.29, supported by expectations of a Fed rate cut, although incoming data could test market pricing. Sterling and the yen also came under pressure, with renewed selling in long-dated government bonds highlighting investor concerns over mounting fiscal deficits in the U.S. and Europe, as well as ongoing political uncertainty in Japan, keeping global currency markets on edge.

Shoprite Holdings Limited (SHP) +5.44%

Shoprite reported strong results for the year to 29 June 2025, with merchandise sales rising 8.9% to R252.7bn and trading profit up 16.6% to R14.95bn. Earnings benefited from disciplined cost management, with HEPS from continuing operations up 15.8% to 1,372.1 cents, while the final dividend was raised to 496 cents, bringing the annual payout to 781 cents. Growth was driven by Checkers (+13.8%) and the Sixty60 platform (+47.7%), while core RSA supermarkets maintained inflation below 2%. Strategic disposals sharpened focus on domestic operations.

Motus Holdings Limited (MTH) +0.01%

Motus delivered resilient results for the year to 30 June 2025 despite a softer revenue performance, down 1% to R112.6bn. Operating profit remained stable at R5.5bn, while profit before tax rose 4% to R3.3bn, supported by a 13% reduction in net finance costs. Headline earnings per share advanced 5% to 1,548 cents, with the total dividend lifted 6% to 550 cents. Strong cash generation, up 60% to R5.7bn, bolstered balance sheet strength, reducing net debt to EBITDA to 1.5x, well within covenant levels, and improving the equity-to-debt ratio to 66:34.

ArcelorMittal South Africa Limited (ACL) +7.92%

ArcelorMittal South Africa has confirmed that no funding has been secured to sustain its Long Steel Business beyond the 30 September 2025 deferral period, despite extensive engagement with the IDC, Government, and stakeholders. The Newcastle blast furnace has been placed into temporary care and maintenance as the company prepares for a potential wind-down of the Longs Business, including consultations with employees. The Flats Business remains fully operational, while the IDC’s due diligence process continues. Shareholders are advised to exercise caution pending further updates.

AfroCentric Investment Corporation Limited (ACT) -5.29%

AfroCentric reported mixed interim results for the six months to 30 June 2025. Revenue from continuing operations declined 2.6% to R4.2bn, but profit before tax rebounded strongly to R161m from a prior loss of R81.2m. Basic earnings rose to R97.1m (11.54 cps), while headline earnings fell 37.8% to R98.2m (11.68 cps), reflecting weaker discontinued operations. The Group continues to advance its strategy of expanding healthcare access and affordability, leveraging technology and partnerships to drive integrated, value-based healthcare solutions across Southern Africa.

Alphabet Inc. (GOOG) -0.72%

Google secured a major legal win as a U.S. judge ruled it will not be forced to sell its Chrome browser or Android OS, easing investor concerns over structural remedies in the long-running antitrust case. Shares rose 7.2% in after-hours trading, with Apple up 3% on news it can continue receiving an estimated $20bn annually from Google in search revenue-sharing. While Google must share certain data with rivals to boost competition, the decision preserves two core assets underpinning its advertising model. U.S. regulators are reviewing possible next steps.

Constellation Brands Inc. (STZ) -6.60%

Constellation Brands cut its FY26 guidance, citing weaker demand and higher U.S. tariffs. The brewer now expects comparable EPS of $11.30–$11.60, down from $12.60–$12.90, with organic net sales forecast to decline 4–6% versus prior guidance of flat to +2%. Beer sales are projected to fall 2–4% on softer volumes and tariff pressure, while free cash flow guidance was reduced to $1.3–$1.4bn. Shares fell over 6% to a 52-week low. Management continues repositioning via wine divestments and a $4bn buyback programme, with $604m already executed.

Kraft Heinz Company (KHC) -6.97%

Kraft Heinz announced plans to split into two standalone companies, effectively undoing much of its $46bn 2015 merger. One entity will focus on shelf-stable meals, anchored by Heinz, Philadelphia, and Kraft mac and cheese, with $15.4bn in 2024 sales, three-quarters from sauces, spreads, and seasonings. The second will consolidate North American staples, including Oscar Mayer, Kraft Singles, and Lunchables, generating $10.4bn in 2024 sales. The separation, expected in H2 2026, reflects a wider industry trend of divesting slower-growth assets. CEO Carlos Abrams-Rivera will lead the grocery staples company post-split.

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