Ferrari tops Q3 forecasts with strong pricing and personalisations, lifts shares 3%

South Africa

The JSE Top 40 index fell 1.7% to 100,021.2 points, while the All Share index declined 1.56% to 107,381.9 points, led by weakness in retailers and financials. Pepkor advanced its adultwear strategy with the acquisition of several Retailability fashion brands, following earlier deals for Choice Clothing and the Ayana label. AI-driven fintech Optasia debuted on the JSE, valued at R23.5 billion, signalling rising interest in technology listings. The Dubai-based firm plans expansion into Asia and Latin America with new buy-now-pay-later and virtual credit services. FlySafair reported normal operations despite a limited cabin-crew strike after wage talks stalled. Meanwhile, annual CPI remained steady at 3.4% in September, reinforcing expectations of stable inflation and fiscal discipline ahead of the Medium-Term Budget Policy Statement.

Europe

European equities fell for a second day, with the STOXX 600 down 0.3% to 570.58 points as mixed corporate earnings and cautious sentiment weighed on markets. BP rose 1.3% after reporting a smaller-than-expected profit decline, while Telefónica plunged 13% after announcing its dividend cut. Associated British Foods slipped 2.9% following weaker annual profits and renewed speculation over a Primark spinoff. Broader losses were tempered by gains in the UK FTSE 100 and Italy’s FTMIB, each up 0.1%. Investors turned focus to Sweden’s Riksbank policy meeting and Norway’s decision to pause ethical divestments by its US$2.1 trillion sovereign wealth fund — a move drawing scrutiny as Europe debates energy exposure and sustainability standards amid volatile commodity pricing.

United States

Wall Street retreated sharply as concerns about inflated equity valuations resurfaced. The S&P 500 and Nasdaq posted their largest one-day falls since 10 October, weighed by weakness in major tech stocks. CEO warnings from Morgan Stanley and Goldman Sachs stoked fears of a potential correction following record market highs. The Philadelphia Semiconductor Index dropped 4%. Political uncertainty deepened as the ongoing government shutdown neared a record duration, disrupting official economic data releases. Investors now rely on private indicators such as ADP’s employment report for guidance. Meanwhile, Zohran Mamdani’s historic election as New York City’s first Muslim mayor underscored shifting political sentiment. With the Fed divided on future rate cuts, markets brace for heightened volatility and tighter liquidity conditions into year-end.

Asia

Asian markets fell sharply, led by a 14% plunge in SoftBank Group shares amid a selloff in AI-linked stocks. The rout erased US$32 billion in SoftBank’s market value and pressured peers Advantest, Renesas and Tokyo Electron, which lost 5–8%. Samsung Electronics and SK Hynix dropped nearly 6% as profit-taking hit chipmakers following record Kospi gains. In China, the S&P Global services PMI slipped to 52.6 from 52.9, signalling slower momentum despite resilient domestic demand. Bank of Japan minutes showed increasing support for a rate hike, with two members urging an immediate rise from 0.5% to 0.75%. The meeting reflected growing confidence that inflation is sustainable, setting the stage for Japan’s potential policy shift after years of ultra-loose monetary conditions.

Currencies

The rand weakened alongside commodity-linked peers as gold’s decline weighed on local assets. The U.S. dollar advanced to four-month highs, supported by safe-haven flows and waning expectations of further Fed easing. The euro slipped 0.3% to US$1.1483, marking a five-session losing streak, while the yen held near eight-month lows at ¥153.6 per dollar. The Australian dollar fell 0.8% to US$0.649 after the RBA kept rates steady at 3.6%. Traders now price a 65% probability of a December Fed rate cut, down from 94% a week earlier. The dollar index topped 100 for the first time since August, reinforcing its dominance as global investors rotate toward defensive positioning amid policy uncertainty and slowing growth momentum.

Commodities

Oil extended losses as risk aversion spread across markets, with Brent falling amid demand worries and rising U.S. inventories. OPEC+ confirmed plans to raise output by 137,000 bpd in December, though analysts said the pause in further hikes early 2026 offers little price support. OPEC’s October output rose just 30,000 bpd as gains in Saudi Arabia were offset by weaker supply from Nigeria, Libya and Venezuela. Gold fell over 1% to three-month lows as the U.S. dollar strengthened on safe-haven demand. The dollar index hit its highest level since August, dampening metal prices as traders awaited U.S. data for clues on the Federal Reserve’s policy outlook.

Pepkor Holdings Limited (PPH) -1.90%

Pepkor has successfully concluded the R1.7 billion acquisition of the Legit, Swagga, Style, and Boardmans businesses from Retailability, following the fulfilment of all regulatory and competition authority approvals. The assets will be integrated into Pepkor Speciality, expanding its adultwear presence — particularly in womenswear through Legit — and growing the division’s store base to over 1,000 outlets. Boardmans will bolster the Pepkor Lifestyle business within the homeware segment. The transaction, representing roughly 1.7% of Pepkor’s market capitalisation, is expected to deliver synergistic value through the group’s retail scale, operational efficiencies, and financial services integration. Management described the deal as a strategic milestone that enhances Pepkor’s market position and growth trajectory in South Africa’s value retail segment.

Alphamin Resources Corporation (APH) +0.15%

Alphamin Resources declared a second interim FY2025 dividend of CAD$0.04 per share (approximately US$37 million), payable on 8 December 2025 to shareholders registered by 21 November 2025. The company also released its unaudited Q3 2025 financial statements and MD&A for the three and nine months ended 30 September 2025 on SEDAR+ and the JSE platform. Alphamin plans to decide on a final FY2025 dividend in April 2026, coinciding with the annual general meeting of its DRC operating subsidiary, Alphamin Bisie Mining SA. The declared dividend equates to ZAR0.494748 per share at an exchange rate of CAD$1.00 = ZAR12.3687, reflecting continued strong cash generation and disciplined capital returns from its high-margin tin operations.

enX Group Limited (ENX) -7.06%

enX Group expects a sharp decline in earnings for the year ended 31 August 2025, reflecting the impact of asset disposals and weaker performance from continuing operations. Headline earnings per share (HEPS) are projected to fall between 78% and 87% to 40–66 cents, while continuing operations are expected to report HEPS of 1–3 cents. Revenue fell approximately 32% due to reduced demand in the Power segment amid minimal loadshedding, delayed data-centre projects, and a once-off R15 million guarantee payment. The disposal of the Fleet, Lubricants, and Chemicals segments—classified as discontinued operations—triggered impairments and restructuring charges. Despite short-term earnings pressure, the streamlined structure positions enX for a more focused industrial growth strategy.

ArcelorMittal South Africa Limited (ACL) -2.08%

ArcelorMittal South Africa has issued a further cautionary announcement, confirming that engagements to explore alternative operational and financial solutions remain ongoing. Most plants within the Newcastle Works Longs Business have now been placed into care and maintenance, with production halted and limited trading continuing to despatch remaining inventory. The National Union of Metalworkers of South Africa (Numsa) has successfully challenged the earlier Section 189 process, with the Labour Court ruling that additional consultations must occur, halting further dismissals and requiring employee reinstatement. The company has applied for leave to appeal. Shareholders are advised to continue exercising caution when trading in ArcelorMittal South Africa’s securities pending further updates.

Advanced Micro Devices Inc. (AMD) -3.70%

AMD forecast fourth-quarter revenue of about US$9.6 billion, above market expectations, driven by accelerating demand for AI and data centre chips. Third-quarter revenue rose 16% to US$9.25 billion, with data centre sales up 22% to US$4.3 billion and PC segment revenue surging 46%. Adjusted EPS reached US$1.20, beating forecasts. Despite a 3% after-hours share dip, AMD’s multi-year AI chip supply deal with OpenAI and growing cloud-infrastructure demand underpin optimism for sustained growth and market share gains against Nvidia.

Shopify Inc. (SHOP) -6.94%

Shopify projected mid-to-high-20% fourth-quarter revenue growth, surpassing market expectations. Strong global demand and adoption of its AI assistant Sidekick are boosting merchant activity despite tariff pressures. Third-quarter gross margin declined to 48.9% from 51.7% due to higher R&D and marketing costs. International markets drove half of GMV growth as Shopify expands its global e-commerce reach.

Uber Technologies Inc. (UBER) -5.06%

Uber reported third-quarter revenue of US$13.47 billion, up 20% year-on-year, with gross bookings rising to US$49.74 billion. However, operating profit of US$1.11 billion missed forecasts, and fourth-quarter guidance for adjusted profit of US$2.41–2.51 billion disappointed investors. Shares fell 8% as legal and regulatory costs weighed on results, offsetting strong demand in rides and delivery, including 29% growth in its delivery segment.

Ferrari N.V. (RACE) +3.24%

Ferrari’s third-quarter EBITDA rose 5% to €670 million, beating forecasts on stronger pricing and personalisations despite flat deliveries and U.S. tariff pressures. Premium SF90 XX and 12Cilindri models boosted margins, supporting 2025 EBITDA guidance of at least €2.72 billion. Shares rose 3.1% as investors welcomed resilient pricing power and steady progress toward Ferrari’s electric vehicle transition.

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