AstraZeneca guides steady 2026 profit growth on strong oncology and pipeline momentum

South African Market Summary

South African equities advanced, with the JSE All Share rising 0.51% to 120,886.62 and the Top 40 gaining 0.59% to 112,968.75. Improving macro sentiment followed comments from a leading economist, who said growth momentum is entering its strongest phase in a decade, contingent on infrastructure delivery. Government plans to consolidate state property assets into a R155 billion management company signal reform intent. President Cyril Ramaphosa also reaffirmed multilateral engagement through BRICS and G20 dialogue, underscoring South Africa’s balanced geopolitical positioning.

European Market Summary

European equities were broadly flat, with the STOXX 600 easing 0.07% to 620.97, hovering near record levels. Gains in autos after upbeat guidance from Ferrari offset weakness in energy as BP paused share buybacks. Structural concerns resurfaced in Germany, where industry leaders warned of declining competitiveness and investment outflows. Meanwhile, Poland’s fiscal trajectory is drawing scrutiny ahead of elections, with Fitch Ratings noting debt stabilisation risks despite the country’s long-term ratings resilience within the EU’s emerging market cohort.

US Market Summary

US equities were mixed as macro data signalled softer momentum. The Dow notched another record, while the S&P 500 and Nasdaq declined amid weaker retail sales and subdued inventory growth. Communication services lagged, pressured by Alphabet after a sizeable bond issuance highlighted rising AI-related capital demands across mega-cap technology firms, including Amazon, Meta and Microsoft. Slower consumer spending trends reinforced expectations of moderating economic growth, shifting investor focus to forthcoming labour market data for confirmation of demand resilience.

Asian Market Summary

Asia-Pacific markets advanced despite lingering global AI-sector volatility. Chinese data showed CPI inflation slowed to 0.2% year on year while PPI remained in deflation, highlighting fragile domestic demand. Policymakers continue efforts to stimulate consumption, though results remain gradual. In Australia, Reserve Bank of Australia Deputy Governor Andrew Hauser stressed that inflation remains elevated and policy may need to stay restrictive, citing firm credit growth. Regional performance reflected selective optimism, supported by expectations of further policy calibration across major Asia-Pacific economies.

Currency Market Summary

Currency markets reflected shifting rate expectations. The South African rand softened as metals prices retreated and investors positioned for upcoming US inflation and employment data. The Japanese yen remained firm following political developments seen as supportive of fiscal discipline. Meanwhile, the US dollar traded unevenly after recent data suggested cooling economic momentum. Traders are closely monitoring labour market releases for clearer guidance on the Federal Reserve’s policy trajectory, with near-term FX volatility likely to remain elevated across both developed and emerging market currencies.

Commodity Market Summary

Precious metals gained as softer US data pulled Treasury yields lower, supporting gold and silver. Oil prices held steady amid geopolitical crosscurrents. Diplomatic engagement between the US and Iran briefly eased supply risk perceptions, though reports of potential additional US naval deployments revived caution. Inventory data expectations also shaped sentiment, with analysts projecting modest crude builds alongside draws in refined products. The balance between diplomatic progress and strategic posturing kept energy markets range-bound, while bullion benefited from renewed defensive positioning ahead of key US labour market releases.

Trellidor Holdings Limited (TRL) +5.38%

Trellidor reported that first-half earnings to 31 December 2025 will decline sharply, reflecting the non-recurrence of a large prior-year UK project and the earlier disposal of Taylor Blinds and NMC. Headline earnings per share and earnings per share are both expected to fall to between 0.01 and 1.19 cents, versus 29.6 cents in the comparable period, representing declines of more than 94%. Management is executing a phased turnaround strategy, beginning with capital reallocation and R19.8 million in debt reduction, followed by cost optimisation initiatives targeting R13.9 million in annualised savings. However, most benefits will only be realised from FY27. UK underlying demand showed modest growth excluding prior project work, while South African trading conditions remained constrained by weak consumer sentiment. A company-wide cost reduction programme is under way and expected to conclude in the second half of FY26. Interim results are due for release around 10 March 2026, with the figures in this statement unaudited.

AstraZeneca Plc (AZN) +1.99%

AstraZeneca projected steady profit expansion into 2026, supported by robust oncology demand and a pipeline of more than 20 anticipated launches, as management offsets patent expiries and pricing pressure. Core earnings per share are expected to rise at a low double-digit rate at constant currencies, with revenue growth in the mid-to-high single digits, following 2025 gains of 8% in sales and 11% in profit. The dividend will increase around 3% to $3.30 per share. Under CEO Pascal Soriot, investment remains focused on the US and China. Fourth-quarter oncology revenue rose 20%, while cardiovascular sales declined amid generic competition, with regional growth led by the US.

Coca-Cola Company (KO) -1.49%

Coca-Cola signalled a sharper focus on product innovation and speed to market under incoming CEO Henrique Braun, as shifting consumer preferences toward lower-sugar options and the rise of weight-loss drugs reshape demand. The group guided to 2026 organic revenue growth of 4–5%, below market expectations, after softer soda demand in North America and Asia. Pricing remained a key earnings lever, with full-year price/mix up 4% while volumes were flat. Fourth-quarter revenue of $11.82 billion missed forecasts, though adjusted earnings beat expectations. Management still sees 7–8% annual EPS growth, supported by portfolio mix and disciplined cost control.

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