Nasdaq seeks SEC approval to trade tokenised securities on main market

South Africa

The Top 40 index added 1.29% yesterday to reach 95,384.9 points, while the All Share index gained 1.22% to close at 102,771.8 points. Calls for the re-nationalisation of ArcelorMittal South Africa intensified as plant closures threatened 3,500 direct and up to 100,000 indirect jobs, exacerbated by costly inputs, cheap imports and U.S. tariffs. Altvest Capital announced plans to raise $210m to build a Bitcoin treasury reserve, rebranding as Africa Bitcoin Corp, in a first for the continent. Q2 GDP data due Tuesday will guide sentiment after Q1’s 0.1% growth, with focus on mining, manufacturing and current account releases. Meanwhile, Black ownership in insurance and asset management reached record highs, highlighting structural shifts.

Europe

European equities closed higher, with the STOXX 600 up 0.52% and France’s CAC 40 advancing 0.78% despite Prime Minister François Bayrou’s ousting via no-confidence vote, France’s fifth change in three years. Political instability weighs on French assets as credit reviews loom and longer bond yields pressure fiscal credibility. Investors await Thursday’s ECB decision, with no rate change expected as inflation nears target. German trade data showed weaker U.S. demand, offset by firmer industrial output. Europe’s political turbulence and trade frictions remain in focus as markets assess growth and debt sustainability risks.

United States

The Nasdaq Composite hit a record high, led by gains in Broadcom (+3%) and Nvidia (+1%), alongside strength in Amazon and Microsoft. Investor attention turns to August inflation data, with PPI due Wednesday and CPI Thursday, following weaker hiring figures that bolstered expectations of imminent Federal Reserve rate cuts. Markets are pricing a near-certain reduction in September, with some probability of a 50bp move. Optimism around AI and big-tech earnings continues to support equity valuations, though macro data and monetary policy remain critical drivers of sentiment heading into year-end.

Asia

Japan’s Nikkei crossed 44,000 for the first time, supported by optimism over tariff reductions on auto exports to the U.S. by mid-September and expectations of increased fiscal stimulus. Gains extended from Monday’s rally following Prime Minister Shigeru Ishiba’s resignation, which has opened the path for Sanae Takaichi, a pro-stimulus candidate, to contest party leadership. Investor sentiment remains buoyed by prospects of accommodative fiscal and monetary policy, as well as easing trade headwinds. Japanese equities continue to outperform on policy optimism and a favourable external environment, bolstering confidence in cyclical recovery momentum.

Currencies

The rand strengthened ahead of South Africa’s GDP release, while the dollar fell to a seven-week low on expectations of downward U.S. jobs revisions, potentially cutting as many as 800,000 positions from prior estimates. Such revisions would reinforce the case for deeper Federal Reserve rate cuts, suggesting policymakers remain behind the curve on employment. The dollar index slipped to 97.34 in Asian trade, extending its retreat since July. Currency markets remain focused on U.S. macro revisions, monetary policy outlook, and local growth signals, with volatility expected across emerging-market currencies.

Commodities

Gold prices advanced to fresh highs as the weaker U.S. dollar and falling bond yields bolstered safe-haven demand, with investors increasingly pricing in imminent Federal Reserve rate cuts. Oil prices also firmed after OPEC+ announced a smaller-than-expected supply increase of 137,000 bpd from October, well below prior months and consensus forecasts. Additional support stems from concerns over potential sanctions on Russia, keeping supply outlooks tight. Precious metals and energy markets remain highly sensitive to policy shifts and geopolitical developments, with investors balancing inflation hedging strategies against cyclical demand uncertainty.

AVI Limited (AVI) +2.20%

AVI delivered a resilient FY2025 performance in a challenging consumer environment, with revenue up 1% and operating profit rising 7.8% following last year’s 21.7% growth. Headline earnings per share advanced 6.1% to 729.1 cents, supported by improved gross margins and sustained cash generation. Fashion retail was constrained by supply chain disruptions and the Green Cross exit, while I&J benefited from stronger fishing performance despite weak abalone demand. The Group invested R42m in restructuring and R601m in capex, achieving a 34.9% ROCE. A final dividend of 406 cents brought the full-year payout to 626 cents, yielding 6.7%.

Sun International Limited (SUI) -1.10%

Sun International reported solid interim results for the six months to June 2025, with continuing income rising 6.7% to R6.1 billion and adjusted EBITDA up 1.1% to R1.6 billion, maintaining a 25.4% margin. Sunbet delivered standout growth with income up 70.7% to R874 million, while strong cash generation saw 62.4% converted to free cash, keeping debt-to-EBITDA at 1.5x. EPS declined 8.9% to 307c, but HEPS surged 60.5% to 305c, with adjusted HEPS advancing 6.5% to 229c. An interim dividend of 172c, up 6.8%, reflects the group’s continued 75% payout ratio.

Clientèle Limited (CLI) +3.33%

Clientèle delivered a strong FY2025 performance, reporting recurring embedded value earnings of R1.27 billion, translating to a 16.8% recurring return on embedded value. Embedded value per share increased to 2,021.97 cents, underpinned by a value of new business of R330.1 million. The Group continued to demonstrate resilience in capital generation and disciplined growth, supporting shareholder returns. A dividend of 132 cents per share was declared, reflecting the Group’s commitment to a sustainable payout policy while balancing reinvestment to drive long-term embedded value creation.

Metrofile Holdings Limited (MFL) +0.00%

Metrofile reported mixed FY2025 results, with revenue from continuing operations up 5% to R1.07 billion, supported by solid growth in secure storage and cloud services, though content services and image processing remained weak. Operating profit declined 12% to R176 million and EBITDA contracted 4% to R277 million, reflecting ongoing margin pressure in Kenya and the Middle East. Headline earnings per share fell 20% to 13.3 cents, with normalised HEPS down 19% to 16.2 cents. Net debt was reduced by 11% to R479 million, underlining resilient cash generation despite operational headwinds.

 Nasdaq Inc. (NDAQ) +1.62%

Nasdaq has filed with the SEC to allow trading of tokenised securities on its main market, which would mark the first time blockchain-based settlement is introduced into the U.S. national market system. The proposal would enable listed equities and ETFs to trade in both traditional and tokenised form, aligning with regulators’ broader review of crypto-related rules. Investor appetite for tokenisation continues to expand globally, with banks such as Citi and Bank of America exploring similar products. If approved, the initiative could significantly enhance liquidity and position Nasdaq as a leader in blockchain integration within mainstream finance.

Nebius Group N.V. (NBIS) -2.15%

Nebius surged over 47% in after-hours trading after announcing a $17.4 billion, five-year deal to supply Microsoft with GPU infrastructure capacity, potentially rising to $19.4 billion with additional services. The agreement highlights accelerating demand for high-performance AI compute as enterprises scale AI investment. Nebius’ offering combines Nvidia GPUs with proprietary cloud software and in-house designed hardware, providing developers with compute, storage, and management tools. Services will commence from its new Vineland, New Jersey, data centre later this year. The deal underscores Nebius’ positioning as a critical AI infrastructure partner, while strengthening Microsoft’s capacity in a strategically vital area.

ANZ Group Holdings Limited (ANZ) -1.02%

ANZ will cut 3,500 jobs and 1,000 contractor roles by September 2026 as part of a cost-efficiency drive under new CEO Nuno Matos. The restructuring will incur a A$560 million charge and aims to foster a performance-driven culture while safeguarding long-term growth. Despite being Australia’s smallest “Big Four” bank by market value, ANZ has maintained commitments to retain Suncorp Bank roles following last year’s A$4.9 billion merger. Workforce reductions are concentrated outside customer-facing roles, with reviews also planned for consultants and third-party contracts. Shares have lagged peers over the past year, with restructuring seen as pivotal to restoring competitiveness.

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