Klarna debuts in New York at $19.7bn valuation, signalling renewed U.S. IPO momentum

South Africa

The Top 40 index added 0.42% yesterday to reach 96,243.6 points, while the All Share index gained 0.35% to settle at 103,587.7 points. South Africa is in discussions with several Chinese automakers to encourage local vehicle production, addressing declining domestic output and surging imports. One manufacturer has shown strong interest in establishing a local base. Meanwhile, the National Energy Regulator (Nersa) admitted to a R54bn tariff miscalculation, which consumers will ultimately bear. The Tshwane metro council has also come under scrutiny for approving a R35,000 monthly VIP protection allowance, exceeding its budget by R10m. Investors await key data releases covering mining, manufacturing, and the current account balance.

Europe

European equities ended softer, with the STOXX 600 down 0.05% at 552.12 points. Inditex gains and strength in defence stocks, including a 1.44% rally in the aerospace and defence index, were offset by a 1.65% decline in technology shares, snapping their five-day winning streak. Geopolitical risk escalated after Poland downed Russian drones entering its airspace. Markets remain cautious ahead of the European Central Bank’s policy announcement, where no rate change is expected, while investors shift focus to U.S. inflation data as a critical driver of global sentiment.

United States

The S&P 500 and Nasdaq reached record highs, buoyed by a sharp 36% surge in Oracle shares after the company flagged surging AI cloud demand. Nvidia, Broadcom, and AMD all advanced, lifting the PHLX chip index by 2.3% to a record. Data centre power suppliers such as Constellation, Vistra, and GE Vernova rose over 6%. Softer producer price inflation data reinforced market expectations of imminent Federal Reserve rate cuts. Traders now fully price a 25bps reduction next week, with a 10% probability assigned to a deeper 50bps move.

Asia

Japan’s Nikkei 225 reached a record 44,252, supported by overnight U.S. equity strength and a 10% surge in SoftBank following reports of a US$300bn OpenAI-Oracle cloud deal. Japanese wholesale inflation accelerated in August on rising food prices, suggesting sticky price pressures. This data, a leading indicator of consumer inflation, will weigh on the Bank of Japan’s policy discussions. Speculation remains elevated that the BOJ may move towards a near-term rate hike, with the next policy meeting scheduled for 18–19 September, keeping investor attention firmly on Tokyo.

Commodities

Oil prices held steady after recent gains, as concerns over global demand and persistent oversupply offset geopolitical risks stemming from the Middle East and Ukraine. Benchmark contracts had rallied more than US$1 on Wednesday following Israel’s strike on Hamas leadership in Qatar and Poland’s interception of Russian drones. Meanwhile, gold steadied close to record highs, supported by investor demand for safe-haven assets. Softer U.S. producer price data has reinforced expectations of a Federal Reserve rate cut next week, keeping precious metals firmly in investor focus.

Currencies

The South African rand firmed after softer-than-expected U.S. producer price data cemented expectations of forthcoming Federal Reserve rate cuts. Meanwhile, the U.S. dollar stabilised in Asian trade, with the dollar index edging up to 97.822 for a third consecutive daily gain. The move followed a 0.1% fall in the U.S. Producer Price Index for August, after a previously reported 0.7% jump in July was revised downwards. Markets now await U.S. consumer inflation figures, which will play a decisive role in shaping Fed policy expectations going forward.

Old Mutual Limited (OMU) +2.52%

Old Mutual reported a 16% rise in results from operations, driven by strong growth in Old Mutual Insure, though tempered by persistency basis changes and restructuring costs. Adjusted headline earnings rose 29%, supported by robust shareholder investment returns, while IFRS earnings were impacted by Zimbabwe’s currency transition. The Group delivered a 15.5% RoNAV, but new business premiums fell 7% and value of new business halved to 1.3%. With a R3bn buyback, a 172% solvency ratio, and sharpened strategic focus, management remains committed to disciplined capital allocation and long-term value creation.

Growthpoint Properties Limited (GRT) +2.03%

Growthpoint delivered steady FY25 results, with Group revenue up 2.2% to R13.3bn and operating profit rising 5.5% to R8.7bn. Distributable income increased 3.1% to R5.0bn, supporting a 6.1% uplift in dividends to 124.3cps, underpinned by stronger South African performance and improved payout ratios. EPS surged 330% to 161.1cps, while headline EPS advanced 57% to 159.0cps. SA NPI rose 5% and V&A Waterfront income gained 12.7% on robust tourism. Group LTV improved to 40.1% with debt reduction from disposals, though NAV per share fell 1.6% to 1 988cps.

Remgro Limited (REM) +2.27%

Remgro issued a trading statement indicating headline earnings per share for FY25 will rise between 33% and 43% to R13.54–R14.56, compared with R10.18 in FY24. The uplift reflects stronger operational performance across most investee companies, reduced finance costs, and the absence of significant corporate actions that weighed on the prior year. Detailed results will be released on SENS on or about 23 September 2025. The trading statement is based on estimated figures not yet reviewed by external auditors.

Metair Investments Limited (MTA) -9.47%

Metair delivered a strong recovery in H1 2025, with revenue surging 53% to R8.7bn and operating profit before capital items rising 27% to R450m. Headline earnings per share improved to 65c, a sharp turnaround from the 3c loss in H1 2024. Performance was supported by stable OEM customer volumes and stronger contributions across most subsidiaries. The consolidation of Hesto has streamlined operations, while AutoZone integration progresses. A new debt package underpins a more sustainable capital structure, positioning the Group for improved visibility and long-term stability.

Universal Partners Limited (UPL) 0.00%

Universal Partners reported a challenging FY25, with NAV per share declining to GBP1.176 from GBP1.292 in FY24. The Company recorded a loss of GBP8.4m versus GBP0.3m previously, translating into a loss per share of 11.5p. Headline loss per share mirrored this outcome. UPL, listed on both the SEM and JSE AltX, continues to focus on investments in high-quality growth businesses across Europe, primarily the UK, while retaining flexibility to allocate up to 20% outside the region. Since listing, UPL has completed six investments and executed two successful exits.

Pan African Resources Plc (PAN) +1.28%

Pan African delivered a record FY25, with gold production up 5.6% to 196,527oz, supported by a strong H2 output and successful ramp-up at Mogale Tailings Retreatment. Revenue rose 44.5% to US$540m, driving a 78.4% increase in profit to US$140.6m and a 41.9% uplift in HEPS to 5.89c. EPS advanced 72.9% to 7.16c. Despite higher AISC of US$1,600/oz, the Group’s new operations underpin FY26 guidance of up to 292,000oz at lower unit costs. A ZAR200m buyback was approved, with full degearing targeted in FY26, underpinned by strong cash generation.

Klarna Group Plc (KLAR) +14.55%

Klarna surged 30% in its New York debut, closing with a $19.65bn valuation and marking a long-awaited entry to public markets. Shares opened at $52, well above the $40 IPO price, after the company and investors sold 34.3m shares, exceeding the guided $35–$37 range. The listing highlights renewed strength in the U.S. IPO market, with several large offerings slated this week. Klarna’s valuation remains well below its $45.6bn peak in 2021, but significantly above its $6.7bn low during inflationary and rate-driven pressures in 2022.

LB Pharmaceuticals Inc. (LBRX) 0.00%

LB Pharmaceuticals raised $285m in its U.S. IPO, selling 19m shares at $15 each, valuing the biotech at $301.5m. The deal marks the first major biotech listing since February, underscoring a tentative reopening of the market amid a wave of new issues across sectors. LB focuses on developing LB-102, an oral therapy in late-stage development for acute schizophrenia, with a pivotal trial expected in early 2026. Despite investor optimism, filings show its $14.2m cash balance is insufficient for operational needs, highlighting funding pressures typical for emerging biotech firms.

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