Novo Nordisk rebounds on Wegovy patent lawsuit

South African Market Summary

The JSE All Share rose 0.19% to 120,276.83 and the Top 40 gained 0.24% to 112,301.48, reflecting measured risk appetite. Corporate focus centred on Harmony Gold’s strategic review of its newly acquired CSA copper mine in Australia, highlighting diversification into future-facing metals as domestic gold mining deepens. Cape Town hosted a major mining conference, reinforcing investor engagement with the sector. Attention now turns to upcoming December mining and manufacturing data, which should provide clearer signals on industrial momentum and the sustainability of South Africa’s cyclical recovery.

European Market Summary

European equities advanced to fresh record highs, with the STOXX 600 up 0.7%, as improving sentiment and earnings resilience underpinned risk appetite. The Sentix investor confidence index rose for a third straight month, reaching its highest level since mid-2025, supported by firmer expectations and a stabilising current assessment. Germany showed notable improvement, contributing to broader euro area optimism. UK retail data also signalled firmer consumer activity, particularly in food sales. Together, these indicators point to gradually strengthening domestic demand, supporting earnings visibility despite lingering macro and policy uncertainties.

US Market Summary

US equities recovered, with the S&P 500 and Nasdaq gaining as technology shares stabilised after recent AI-driven volatility. The Dow posted another record close, while broader indices remained near highs. Markets are focused on upcoming labour and inflation data, key for shaping Federal Reserve rate expectations, with June currently seen as the first potential cut. Corporate headlines included weakness in Hims & Hers following legal action from Novo Nordisk over obesity drug patents, highlighting intensifying competition and regulatory scrutiny in the high-growth GLP-1 therapeutic segment.

Asian Market Summary

Asian markets were mixed as Japan’s Nikkei extended gains following political continuity and supportive domestic policy expectations. In contrast, South Korea’s Hanwha Aerospace fell sharply after earnings disappointed despite strong revenue growth, underscoring margin pressures in defence manufacturing. Singapore upgraded its growth outlook after robust late-2025 momentum, citing global demand and AI-led investment. Chinese exchanges introduced measures to ease refinancing for high-quality firms, reinforcing policy efforts to stimulate innovation and capital formation. Regional performance reflects diverging sector dynamics alongside continued policy support for growth.

Currency Market Summary

The rand strengthened alongside firmer gold prices, while the US dollar remained under pressure ahead of pivotal economic releases. The yen held recent gains supported by policy rhetoric and political developments in Japan, though longer-term expectations remain for gradual weakness amid fiscal expansion prospects. Sterling traded steadily after recent volatility tied to UK political uncertainty and rate-cut expectations. Currency markets are currently driven by shifting rate outlooks and domestic political narratives, with near-term moves likely to hinge on upcoming inflation and employment data in major economies.

Commodity Market Summary

Oil prices eased after recent gains as traders assessed geopolitical risks around the Strait of Hormuz, a critical transit point for global crude flows. US maritime guidance kept supply security in focus, although diplomatic signals suggested tentative stability. Gold and silver retreated as the dollar firmed, with investors positioning ahead of key US economic data that could influence rate expectations. Commodity markets remain sensitive to geopolitical developments and macro policy signals, with precious metals particularly responsive to shifts in real yields and currency dynamics.

Northam Platinum Holdings Limited (NPH) +1.64%

Northam Platinum reported a strong interim performance for the six months to December 2025, supported by higher volumes and a sharply improved rand PGM basket price. Equivalent refined 4E production rose 3.7%, while metal sales increased 13.7%, driving a 60% surge in revenue to R23.3 billion. Unit cash costs rose 7.2%, reflecting mining inflation, but operating profit jumped to R5.8 billion. Headline earnings per share are expected above 1 500 cents. Net debt remains modest at 0.24 times EBITDA, with substantial undrawn banking facilities.

Vodacom Group Limited (VOD) +0.92%

Vodacom announced that Vodafone Egypt will participate in Egypt’s new multi-year spectrum investment programme, securing 2x10 MHz in the 1 800 MHz band during the initial phase. The spectrum strengthens Vodafone Egypt’s network capacity and positions it to meet rising data demand in a structurally growing market. The acquisition will be recognised as an intangible asset of about US$350 million, funded through a multi-year payment schedule. Near-term cash outflows remain manageable, with leverage impact limited. Further spectrum allocations, including 3 500 MHz, are expected in later programme phases.

DRDGOLD Limited (DRD) +4.27%

DRDGOLD expects interim earnings to more than double for the six months to December 2025, with EPS and HEPS rising roughly 93–103%, driven primarily by a 43% higher average rand gold price. Revenue increased 33% despite lower volumes, while cash costs rose modestly amid input inflation. Strong cash generation supported a significant rise in capital expenditure linked to expansion projects under Vision 2028. The balance sheet remains ungeared with robust liquidity, positioning the group to fund growth while benefiting from favourable gold price dynamics.

Vukile Property Fund Limited (VKE) -0.92%

Vukile reported resilient festive-season trading across its South African and Iberian retail portfolios, underscoring defensive consumer demand in convenience-led centres. In South Africa, trading density rose 2.4% in November and 4.5% in December, with commuter and value centres outperforming, while footfall improved in December. Iberian operations via Castellana also delivered growth, with Spain and Portugal recording solid November sales and selective category strength through December despite mixed footfall trends. Performance highlights the portfolio’s exposure to essential retail and value-focused formats, supporting income visibility and operational momentum.

Pick n Pay Stores Limited (PIK) +0.61%

Pick n Pay reported modest turnover growth of 3.2% for the 48 weeks to February 2026, with like-for-like sales up 3.4%, supported by resilient core supermarket demand and strong 11.9% growth at Boxer. Online sales rose 31.8%, while clothing faced a tougher second half. Price inflation remained contained below food CPI, reinforcing value positioning. However, softer recent trading and store rationalisation weighed on performance, with the group guiding to a wider headline loss for FY26. Management emphasised ongoing operational improvements and a non-linear recovery path toward profitability.

Novo Nordisk A/S (NOVO-B) +5.25%

Novo Nordisk shares rebounded after the company filed a US patent infringement lawsuit against Hims & Hers Health over a compounded copy of its obesity treatment Wegovy. The action follows regulatory scrutiny of low-cost GLP-1 alternatives and signals a firmer legal stance to protect branded franchises as shortages ease. Investors see potential for tighter enforcement to curb copycat supply, supporting pricing power in the fast-growing obesity market. However, competitive intensity remains elevated as rivals, including Eli Lilly, advance oral GLP-1 therapies.

SoftBank Group Corporation (9984) +6.30%

SoftBank Group shares rallied after its telecom subsidiary, SoftBank Corp, upgraded full-year guidance, reinforcing confidence in the group’s earnings resilience and AI-linked exposure. Nine-month revenue rose 8% to a record ¥5.2 trillion, with operating income also up 8%. Management lifted full-year revenue and profit forecasts, citing steady execution despite a strategic shift toward higher-quality subscriber growth. Consumer revenue growth remained modest, but profitability improved even as smartphone subscribers declined, signalling a deliberate pivot toward margin discipline over volume expansion.

Hanwha Aerospace Company Limited (012450) +1.02%

Hanwha Aerospace shares fell after fourth-quarter results missed expectations at the pre-tax and revenue lines despite strong top-line growth. Quarterly revenue rose 73% year on year but undershot forecasts, while pre-tax profit dropped sharply and operating profit declined. Net profit exceeded estimates, offering limited support. Full-year revenue more than doubled, yet profitability metrics were mixed, with pre-tax profit down and operating profit rising strongly. The group’s multi-year rally reflects sustained global defence demand, particularly European orders for artillery and rocket systems, though earnings volatility is emerging.

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