In today's Taking Stock, AbbVie cut its 2024 adjusted EPS forecast to $10.38–$10.58, citing a $2.7 billion Q3 charge related to in-process R&D, well below analyst consensus of $12.02.
South Africa
The All Share index added 1.56% on Friday to settle at 109,778.1 points, while the Top 40 index gained 1.57% to reach 102,696.7 points. South Africa’s private sector expanded for the fifth straight month in September, with the S&P Global PMI inching up to 50.2 from 50.1. Growth was driven by improved output and new orders, while input costs rose at their slowest pace in nearly a year, aided by a stronger rand and lower employment costs. Despite operational gains, business sentiment hit its weakest point since July 2021, citing political and economic uncertainty. Employment fell for a second month, albeit at a slower rate. Export orders improved, supported by African demand and shorter delivery times.
European Union
European equities saw their strongest weekly performance in five months, with the STOXX 600 gaining 2.8% and hitting record highs. Healthcare led the rally, boosted by AstraZeneca and Novo Nordisk, following easing U.S. pricing concerns. Miners and banks also gained, with Raiffeisen surging 7.4% amid EU sanction reprieve speculation. Eurozone services growth reached an eight-month high, but France’s sector contracted more than expected. The Bank of England warned against regulatory complacency, citing rising risks. Investor sentiment was supported by growing expectations of a Fed rate cut, lifting broad European market confidence.
United States
The S&P 500 and Dow closed at record highs, while the Nasdaq dipped amid a volatile session driven by uncertainty around the U.S. government shutdown. Expectations of further Fed rate cuts remain intact, supported by soft labour data and the delayed nonfarm payrolls report. The ISM services employment index contracted for the fourth consecutive month, reinforcing labour market weakness. Applied Materials fell 2.7% after guiding for a $600 million revenue hit in FY2026. Despite fiscal uncertainty, markets remained buoyed by dovish Fed sentiment and subdued inflation expectations.
Asia
Japanese equities surged over 4% to record highs as the yen weakened sharply, following fiscal and monetary dove Sanae Takaichi’s election as ruling party leader, setting the stage for Japan’s first female prime minister. Markets expect continued economic stimulus under her leadership. Other major Asian bourses, including China, South Korea, and Taiwan, were closed for public holidays. The Hang Seng dipped 0.3% ahead of a local holiday, while thin trade saw Australia’s ASX decline marginally. Regional optimism remains selective, with macro risks and divergent policy stances shaping investor positioning.
Currencies
The South African rand edged higher, supported by firmer gold prices and encouraging PMI data. However, weak business sentiment remains a headwind. The yen posted its sharpest drop against the U.S. dollar in five months after pro-stimulus leadership emerged in Japan, fuelling concerns over further monetary easing. Meanwhile, the U.S. dollar slipped to multi-week lows as the government shutdown delayed key economic releases, including nonfarm payrolls. Broader currency markets remain sensitive to policy divergence, political risk, and shifting interest rate expectations, with volatility likely to persist into Q4.
Commodities
Gold broke above $3,900/oz for the first time, driven by safe-haven demand amid U.S. political uncertainty, yen weakness, and rising expectations of Fed rate cuts. Oil prices climbed 1.5% after OPEC+ confirmed a modest 137,000 bpd output increase for November, matching October’s level and easing concerns of oversupply. Russia had pushed for the modest hike, while Saudi Arabia favoured a more aggressive ramp-up to regain market share. G7 nations pledged to tighten enforcement on Russian oil buyers, intensifying the pressure on Moscow’s revenues amid ongoing geopolitical tensions.
Tharisa plc (THA) -1.64%
Tharisa has announced a phased transition of its namesake mine from open pit to underground operations, securing over 50 years of production. The Apollo and Orion underground complexes willramp up from 2031, replacing open pit output by FY2035, sustaining the 5.6 Mtpa processing capacity. The $547m capital outlay—peaking at $173m—will be funded via internal cash flows and external facilities. The shift enhances efficiency, lowers dilution, and supports ESG goals. A mining contractor model underpins the strategy, positioning Tharisa for scalable, long-term PGM and chrome production with reduced environmental impact.
Tongaat Hulett Limited (Not Listed)
Tongaat Hulett has released its 33rd monthly update on the ongoing business rescue process, as required under South African company law. The Company entered voluntary business rescue in October 2022, with proceedings still active as of September 2025. The latest report outlines progress and includes an update on litigation in section 2.3. Stakeholders continue to monitor developments closely, particularly regarding legal exposures and potential restructuring outcomes. The protracted process underscores the complexity of Tongaat’s financial recovery and its implications for shareholder value and creditor arrangements.
AbbVie Inc. (ABBV) -1.12%
AbbVie cut its 2024 adjusted EPS forecast to $10.38–$10.58, citing a $2.7 billion Q3 charge related to in-process R&D, well below analyst consensus of $12.02. Q3 EPS guidance of $1.74–$1.78 also missed estimates due to the unplanned charge, which stemmed from recent M&A activity. The company warned that final results may differ from current estimates. Meanwhile, AbbVie broke ground on a $195 million plant in Illinois, bolstering production capacity for immunology and oncology drugs. It continues pivoting from Humira by investing in pipeline growth and US expansion.
Hon Hai Precision Industry Company Limited (2317) +0.44%
Foxconn, the world’s largest contract electronics manufacturer, reported record Q3 revenue of T$2.057 trillion, up 11% year-on-year, driven by strong AI server demand. Despite falling short of the T$2.134 trillion LSEG SmartEstimate, management described the performance as better than expected. On a USD basis, revenue rose 16.1%. September set a monthly record, supported by ramping AI shipments and seasonal demand. However, exchange rate fluctuations and geopolitical risks remain key uncertainties. Shares have outperformed the broader Taiwan market, up 23% year-to-date versus the benchmark’s 16% gain.
Tata Capital Limited (Not Listed)
Tata Capital raised ₹46.42 billion ($523 million) from anchor investors including LIC and Norway’s wealth fund ahead of its ₹145 billion ($1.75 billion) IPO, one of India’s largest this year. Shares were priced at the upper band of ₹326. Domestic mutual funds secured 36% of the anchor allocation, which covers 30% of the 475.8 million shares on offer. The IPO comprises a fresh issue and secondary sales by Tata Sons and IFC. With India’s IPO market gaining momentum, Tata Capital’s listing on 13 October will be closely watched by institutional investors.
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