0002S 0002 Takingstock Header9

MARKET COMMENTARY

LOCAL MARKET COMMENTARY

On Thursday, both the Top 40 index and the All Share index closed over 0.4% higher, ending at 73,992 and 81,155 points, respectively. With the South African government formed and sworn in after the May 29 elections and few major local economic reports expected in the coming week, the market is likely to be influenced by global factors like U.S. monetary policy. Additionally, the new South African Home Affairs Minister, Leon Schreiber, has extended the temporary concession for foreign nationals awaiting visa, waiver, and appeal application outcomes to December 31.

EUROPEAN MARKET COMMENTARY

European shares rose on Thursday amid optimism about U.S. interest rate cuts following soft economic data. London markets gained as voting began in the UK general election, with polls predicting a historic Labour Party victory. French stocks rose 0.8% for the second day, driven by intensified efforts to prevent the far-right National Rally from gaining power. Meanwhile, German industrial orders unexpectedly fell in May, and Swiss inflation dropped last month, increasing expectations for another interest rate cut by the central bank later this year.

US MARKET COMMENTARY

US markets were closed on Thursday due to a public holiday.

ASIA MARKET COMMENTARY

Asia-Pacific markets were mostly lower today, with Japan's Nikkei 225 reducing gains after reaching new record highs. Japan's household spending for May unexpectedly fell by 1.8% in real terms compared to the previous year, contrary to economists' expectations of a 0.1% increase. This household spending data is crucial for the Bank of Japan's goal of achieving a "virtuous cycle" of rising wages and prices. In May, the average household spending was 290,328 yen ($1,799.28), while the average monthly income was 500,231 yen, a 6.4% nominal increase and a 3% real increase from the previous year.

CURRENCY MARKET COMMENTARY

The South African rand continued to strengthen against the dollar on Thursday as expectations grew that U.S. interest rate cuts are imminent, causing the dollar to slip. The U.S. dollar was near three-week lows this morning as markets awaited payroll data that could impact the outlook for interest rates. Meanwhile, the pound remained strong, with the Labour Party expected to win a large majority in the UK general election.

COMMODITY MARKET COMMENTARY

Gold prices rose slightly this morning, heading for a second consecutive weekly gain as traders awaited U.S. employment data to assess the likelihood of Federal Reserve interest rate cuts. Meanwhile, oil prices remained steady in Asian trade but were set for a fourth consecutive weekly gain, staying near their highest levels since late April due to expectations of strong summer fuel demand and supply concerns.

LOCAL COMMENTARY

Oando PLC (OAO) -55.00%

Oando PLC announces that it will not meet the July 31, 2024, deadline for filing its 2023 Audited Financial Statements due to not meeting the statutory deadline. After publishing the 2022 Audited Financial Statements in April 2024 and the unaudited financial statements for Q1-Q4 of 2023 in May 2024, the audit for the 2023 AFS began. Oando is committed to completing this audit by August 31, 2024, after which the 2023 AFS will be submitted to the Board and then to the Financial Reporting Council of Nigeria for approval before being publicly released.

Naspers Limited (NPN) 0.41%

Between August 25, 2023, and July 3, 2024, Naspers Shares were purchased at prices ranging from ZAR2,748.82 to ZAR4,080.00, with a total of 13,084,582 shares acquired at a value of ZAR43.79 billion. The Naspers Repurchase Programme, conducted through the JSE trading system, involved unrelated trades without any prior arrangement between Naspers, Main Street, and the counter parties, and was established in compliance with JSE Listings Requirements paragraph 5.72(h) before any prohibited period. As of July 3, 2024, 73,953,330 Naspers Shares, representing 16.996% of the issued shares prior to the Repurchase Programme, remain outstanding under the General Authority.

INTERNATIONAL COMMENTARY

Samsung Electronics Company Limited (005930) +3.42%

Samsung Electronics is expected to report a 13-fold increase in second-quarter profit compared to a year ago, driven by rising demand for artificial intelligence technology boosting memory chip prices. The company's operating profit is estimated to have reached 8.8 trillion won ($6.34 billion) for the quarter ended June 30, according to an LSEG SmartEstimate from 27 analysts. The chip division alone is projected to have an operating profit of 4.6 trillion won, a significant turnaround from a 4.36 trillion won loss in the same period last year.

BHP Group Limited (BHP) +2.57%

BHP Group informed tens of thousands of its workers worldwide that their incentive pay will be reduced because the company did not meet its performance goals, according to the Australian Financial Review. The world's largest listed miner will pay only 80% of the short-term incentives offered for 2023-24. The leadership cited missed cost and production targets in some divisions and a worker's death at the Saraji coal mine in Queensland in January as reasons for the cuts.

Do you prefer a full in-depth report you can read offline? Click here to download the full report

About the Author

Research Team
Media, Sasfin Wealth

> }

Offcanvas Title

Default content goes here.
Intro