Amazon plans $37 billion bond sale as AI infrastructure spending surges

South African Market Summary

The JSE All Share Index advanced 2.42% to 119,606.91, while the Top 40 gained 2.60% to 111,829.61, supported by improved domestic growth data. South Africa’s economy expanded 1.1% in 2025, the fastest pace in three years, driven by stronger activity in agriculture, trade and finance. Fourth-quarter GDP rose 0.4%, slightly above expectations, with finance and trade leading sectoral growth. Although structural constraints such as electricity and logistics challenges continue to weigh on long-term performance, accelerating reform momentum has improved sentiment, with National Treasury projecting growth to rise to 2% by 2028.

European Market Summary

European equities recorded their strongest one-day gain since April 2025, with the STOXX 600 rising 1.9% as easing geopolitical concerns supported global risk sentiment. Spain’s IBEX advanced 3.1%, while Germany’s export-focused DAX also delivered its largest daily gain in nearly a year. Cyclical sectors led the rally, with industrials up 2.8% and travel and leisure gaining 2.5% on expectations of improved transport and tourism activity. Meanwhile, European Central Bank policymakers signalled a cautious policy approach, with markets now pricing in at least one interest-rate increase by year-end.

US Market Summary

U.S. equities ended mixed as geopolitical tensions and stagflation concerns weighed on sentiment. The S&P 500 and Dow Jones Industrial Average reversed earlier gains to close lower, while the Nasdaq Composite posted a marginal advance. Markets were influenced by escalating rhetoric surrounding the U.S.–Israeli conflict with Iran, including renewed threats linked to activity in the Strait of Hormuz. Investors remain cautious ahead of key economic releases this week, including U.S. CPI, revised GDP and the Federal Reserve’s preferred PCE inflation measure, all of which could shape expectations for the near-term monetary policy outlook.

Asian Market Summary

Asia-Pacific markets traded higher as investors assessed developments in the Middle East conflict. Japan’s wholesale inflation cooled for a third consecutive month, with the corporate goods price index rising 2.0% year-on-year in February, slightly below expectations, as fuel subsidies offset commodity pressures. However, rising oil prices linked to geopolitical tensions may renew inflation risks, complicating the Bank of Japan’s policy outlook. Corporate news also supported sentiment, with Hong Kong-listed shares of Nio surging over 15% after reporting strong fourth-quarter results, driven by a sharp increase in vehicle deliveries, improved margins and higher revenue.

Currency Market Summary

The South African rand recovered modestly after recent weakness as comments from U.S. President Donald Trump raised expectations that the Middle East conflict could end sooner than anticipated. The U.S. dollar, which had strengthened amid rising oil prices and heightened geopolitical risk, stabilised as investors adopted a cautious stance. While markets continue to price in a potential de-escalation, mixed signals surrounding the U.S.–Israeli conflict with Iran have kept currency sentiment fragile, with analysts warning that uncertainty around energy supply disruptions could sustain near-term volatility in global foreign exchange markets.

Commodity Market Summary

Oil prices declined below $90 per barrel after reports that the International Energy Agency is considering the largest strategic reserve release in its history to stabilise markets amid the U.S.–Israel conflict with Iran. The proposal helped ease inflation concerns despite ongoing disruptions around the Strait of Hormuz, a key energy transit route. Markets were also supported by expectations of a potentially shorter conflict. Meanwhile, gold edged higher as investors balanced easing inflation pressures against geopolitical risks and awaited key U.S. economic data for further signals on the Federal Reserve’s policy outlook.

Absa Group Limited (ABG) -1.27%

Absa Group is accelerating its pan-African expansion as growth outside South Africa increasingly drives earnings momentum. CEO Kenny Fihla highlighted East Africa as a strategic priority, particularly as global banks retreat from the region, creating acquisition opportunities. The bank recently agreed to acquire Standard Chartered’s wealth and retail banking operations in Uganda, strengthening its regional footprint. Rest-of-Africa operations, led by Ghana and Kenya, supported a 12.25% rise in full-year headline earnings to R24.7 billion. Management sees further growth in Uganda, Tanzania and Zambia, supported by stronger regional economic expansion and rising demand linked to critical minerals and trade corridors.

Weaver Fintech Limited (WVR) +1.56%

Weaver Fintech reported strong FY2025 results, with group revenue rising 23% to R5.5 billion and trading profit increasing 41% to R1.1 billion, supported by continued expansion of its fintech ecosystem. Customer numbers grew 40% to 4.3 million, while HEPS rose 40% to 552.7 cents. Fintech trading profit advanced 37%, delivering a return on equity of 27%. Reported EPS declined 3% to 383.7 cents due to a once-off R244 million retail impairment. The group declared a final dividend of 132 cents per share, bringing the full-year payout to 272 cents as strong liquidity supports continued growth investment.

Hyprop Investments Limited (HYP) -0.52%

Hyprop reported robust interim results for the six months to December 2025, with distributable income rising 12.9% to R864 million and distributable income per share increasing 5.4% to 212.3 cents despite additional shares issued. The group declared an interim dividend of 119 cents per share, up 4.9%, and remains on track to meet the upper end of FY2026 guidance for 10–12% DIPS growth. Operational performance improved across its South African and Eastern European portfolios, supported by stronger tenant turnover, lower vacancies and positive rent reversions, while a strengthened balance sheet and lower leverage underpin future growth.

Attacq Limited (ATT) -1.57%

Attacq reported solid interim results for the six months to December 2025, with distributable income per share increasing 9.6% to 60.3 cents and the interim dividend rising 9.1% to 48.0 cents. Net operating income grew 5.2%, supported by strong operational metrics, including occupancy of 93.7% and collections of 100.1%. The group maintained a conservative balance sheet, with gearing of 25.1% and improved interest cover of 3.15 times. Development activity at Waterfall City accelerated significantly, with 47 256m² of effective gross lettable area under development, reinforcing the precinct’s role as Attacq’s primary growth platform.

CA Sales Holdings Limited (CAA) +4.56%

CA Sales Holdings issued a trading statement indicating that earnings for the year ended 31 December 2025 are expected to increase meaningfully. The company forecasts EPS of 140.85–147.19 cents, representing growth of 11%–16% year-on-year, while HEPS is projected at 141.12–147.25 cents, up 15%–20% compared with 2024. The improvement reflects stronger gross margins driven by operational efficiencies, disciplined cost management and increased associate income from the Tradco Group acquisition. The financial information remains unaudited, with full-year results expected to be released on or about 26 March 2026.

Oracle Corporation (ORCL) -1.43%

Oracle shares rose in extended trading after the company projected strong long-term growth driven by accelerating demand for AI data centre infrastructure. Third-quarter revenue reached $17.19 billion, ahead of expectations, while remaining performance obligations surged 325% year-on-year to $553 billion, reflecting large-scale AI contracts with partners including OpenAI and Meta. Oracle also raised its fiscal 2027 revenue outlook to $90 billion, above market forecasts. Management expects improving cloud margins as AI infrastructure scales, with fourth-quarter revenue growth guided at 19%–21% and adjusted EPS of $1.96–$2.00, slightly above consensus estimates.

Amazon.com (AMZN) +0.39%

Amazon is seeking to raise approximately $37 billion through an 11-part bond issuance to fund continued investment in artificial intelligence infrastructure. The offering attracted strong investor demand, with peak orders reportedly reaching $126 billion, highlighting robust appetite for high-grade technology debt. The bonds will be issued in both U.S. dollars and euros, reflecting Amazon’s global funding strategy. The move aligns with broader industry trends, as major technology firms accelerate capital expenditure to expand AI data centre capacity, positioning hyperscalers such as Amazon Web Services at the centre of the global AI infrastructure buildout.

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