TSMC Q1 Revenue Jumps 42 Percent on AI Demand, Beats Estimates Despite Quake Impact

Local Market Commentary

The Top 40 index surged 4.49% to 79,091.7 points yesterday, while the All Share index rose 4.31% to 86,041.5, capping a volatile week of trading. On the policy front, South African Trade Minister Parks Tau confirmed that African and US officials will meet mid-year to discuss the future of the African Growth and Opportunity Act (AGOA), which now faces uncertainty after recent tariff changes. With AGOA set to expire in September, African trade ministers will convene in the DRC next week to explore a unified approach, while South Africa also seeks alternative trade partners. Separately, Health Minister Dr Aaron Motsoaledi announced the approval of 1,650 new healthcare posts and over R1.3 billion in funding for hospital equipment upgrades.

European Market Commentary

European equities staged a sharp rebound on Thursday, with the STOXX 600 surging 3.7%—its strongest one-day gain since 2022—after President Trump paused reciprocal tariffs for most trading partners, sparking a relief rally across markets. Major regional indices climbed between 3% and 4.7%, partially recovering from steep losses since the tariff announcement on 2 April, with the STOXX 600 still down over 13% from its March peak. Despite the bounce, eurozone volatility remained elevated at 37 points, suggesting ongoing market uncertainty. Meanwhile, money markets eased expectations for an ECB rate cut in April, now assigning a 97% probability, with around three 25bp cuts priced in for 2025.

U.S. Market Commentary

U.S. equities fell sharply on Thursday as escalating trade tensions under President Trump’s multi-front tariff strategy reignited fears over the economic outlook, erasing much of the previous day’s gains. All major indices declined, with investor sentiment weighed down by the intensifying U.S.-China standoff despite positive economic data and ongoing U.S.-Europe trade talks. March CPI data showed an unexpected dip in headline inflation and a cooling in core prices to 2.8% year-on-year—nearing the Fed’s 2% target. The Q1 earnings season begins today, led by results from major U.S. banks including JPMorgan Chase, Morgan Stanley, and Wells Fargo.

Asia Market Commentary

Asia-Pacific markets declined on Friday, tracking Wall Street’s renewed sell-off amid heightened U.S.-China trade tensions that continue to dampen risk appetite. In response, the People’s Bank of China reiterated its commitment to a “moderately loose” monetary policy to support financial stability and economic recovery. PBOC Deputy Governor Xuan Changneng emphasised efforts to maintain orderly market functioning during meetings with Japanese and South Korean officials. Meanwhile, Taiwan’s exports surged 18.6% year-on-year in March to a record $45.97 billion—well above expectations—as buyers front-loaded orders ahead of anticipated U.S. tariffs, though momentum moderated from February’s sharp rise.

Currency Market Commentary

The rand strengthened on Thursday, recovering ground as global investors reacted to President Trump’s surprise 90-day pause on tariffs for many countries. Currency markets were volatile, with sterling rising 1% against a weaker dollar but falling versus a stronger euro. Meanwhile, the dollar continued to slide amid growing concerns about the U.S. economic outlook, prompting a flight to safe-haven assets. Gold hit a fresh all-time high, while the Swiss franc reached a decade peak, reflecting heightened risk aversion in global markets.

Commodity Market Commentary

Gold surged past the $3,200/oz mark for the first time this morning, hitting a record high as a weakening U.S. dollar and intensifying trade tensions drove investors into safe-haven assets. In contrast, oil prices declined and are on track for a second consecutive weekly loss, pressured by fears that the protracted U.S.-China trade conflict will dampen global economic activity and reduce crude demand from the world’s two largest consumers. The standoff is expected to disrupt trade flows, weigh on growth, and ultimately suppress energy consumption.

Nu-World Holdings Limited (NWL) 0.00%

Nu-World Holdings, headquartered in South Africa with subsidiaries in Australia, Brazil, Dubai, and Hong Kong, reported robust growth for the six months ending 28 February 2025. Total revenue increased by 28.8% to R1.25 billion, compared to R969.5 million in the previous period. Profit attributable to equity holders rose by 15.5% to R36.37 million, and basic and headline earnings per share grew by 19.6% and 19.2%, respectively. Net asset value per share increased by 4.1%, reflecting strong financial performance.

Life Healthcare Group Holdings Limited (LHC) -0.22%

Life Healthcare delivered positive results for the six months ended 31 March 2025, driven by strong performance in its southern African business. Paid patient days (PPDs) rose by 2%, with occupancy increasing to 68.6%, up from 66.6% in H1-FY2024. Revenue per PPD grew by 6.1%, with overall revenue rising by 8.0% to 9.0%. The company remains on track to meet its 2025 targets, including the addition of 79 new beds and expansion of its renal dialysis integrated care programme. The update excludes Life Molecular Imaging (LMI) and Alliance Medical Group (AMG), which are classified as discontinued following the announced disposal to Lantheus Holdings Inc.

Tharisa PLC (THA) -0.08%

Tharisa, a dual-listed mining and metals company, reported solid production results for Q2 FY2025. PGM production increased to 32.5 koz from 29.9 koz, and chrome production rose to 381.0 kt from 374.4 kt. Average PGM prices increased to $1,421/oz, while chrome prices fell to $235/t. The company maintained steady operational performance, with reef mining at 1,131.1 kt and reef milled at 1,358.6 kt. Cash on hand grew to $186.0 million, and debt rose to $106.7 million, resulting in a net cash position of $79.3 million. Production guidance for FY2025 is between 140 koz and 160 koz for PGMs and 1.65 Mt to 1.8 Mt for chrome concentrates.

Murray & Roberts Holdings Limited (MUR) 0.00%

Murray & Roberts Holdings Ltd (MRL) has experienced significant liquidity issues, leading to the placing of its subsidiary, MRL, into business rescue on 22 November 2024. This followed delays in project progress, losses from the OptiPower division, and the loss of a major contract with De Beers. As a result, MRL was deconsolidated from the Group’s financial results. The business rescue plan, approved on 8 April 2025, includes the sale of MRL’s main assets, Cementation Company (Africa) Pty Ltd and Murray & Roberts United Kingdom Ltd, to a third party. The proceeds will cover secured creditors, but no distribution is expected to shareholders.

Taiwan Semiconductor Manufacturing Company Limited (2330) +9.94%

TSMC, the world’s leading contract chipmaker, reported a 42% year-on-year rise in Q1 revenue to T$839.3 billion ($25.6 billion), marginally surpassing market expectations, driven by strong demand in the artificial intelligence sector. The result slightly exceeded the LSEG SmartEstimate of T$835.7 billion and fell within the company’s prior guidance of $25–25.8 billion, despite earlier warnings of a $161 million hit from a January earthquake. Full quarterly earnings and forward guidance are scheduled for release on 17 April.

Frontier Group Holdings Inc. (ULCC) -12.50%

Frontier Group, parent company of Frontier Airlines, has withdrawn its full-year earnings guidance and issued a profit warning for Q1, citing weakened travel demand linked to the ongoing US-China trade tensions. This follows a similar move by Delta Air Lines earlier in the week. Having previously projected adjusted annual earnings of at least $1.00 and breakeven results for Q1, Frontier now anticipates a quarterly adjusted loss of $0.20 to $0.24 per share—well below the consensus estimate of a $0.03 loss. Despite forecasting 5% revenue growth for the quarter, the Denver-based carrier is actively monitoring demand trends and plans to adjust capacity accordingly.

Prada S.p.A (PRP) +12.99%

Prada has agreed to acquire Versace from Capri Holdings in a $1.38 billion deal, bringing together two iconic Italian fashion houses with distinct brand identities—Prada’s minimalist aesthetic and Versace’s bold baroque style. The acquisition aims to drive revenue growth by broadening Prada’s customer base and leveraging synergies without creative or demographic overlap. While Prada has weathered the luxury market slowdown, Versace has recently operated at a loss. The move bolsters Italy’s position in a luxury sector dominated by French groups such as LVMH, and follows Donatella Versace’s recent decision to step down as chief creative officer.

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