T Mobile raises 2027 outlook as 5G growth drives strong quarter

South African Market Summary

South African equities advanced, with the JSE All Share rising 0.72% to 121,752.86 and the Top 40 gaining 0.75% to 113,817.66. The IMF cautioned that risks to South Africa’s outlook remain skewed to the downside, urging a more credible and binding debt anchor, noting that expenditure ceilings have failed to halt rising public debt. National Treasury expects gross debt to stabilise at 77.9% of GDP this year. Market focus also remains on the Cape Town mining conference and forthcoming December mining and manufacturing output data releases.

European Market Summary

European equities ended at fresh record levels, with the STOXX 600 edging 0.1% higher to 621.58 as strength in commodity-linked shares offset softness in technology and financials. Investors digested resilient US labour data while regional indicators pointed to stabilising activity. UK housing showed renewed momentum, with RICS reporting improved buyer enquiries and prices, reinforcing lender data signalling firmer demand. In France, business surveys indicated a stronger-than-expected rebound, with the central bank projecting quarterly growth of 0.2–0.3%, suggesting modest but broadening euro area recovery momentum.

US Market Summary

US equities closed mixed as stronger-than-expected labour data tempered recession concerns but reinforced expectations that the Federal Reserve may slow the pace of rate cuts. The Nasdaq and Dow edged lower, while the S&P 500 was broadly flat after earlier gains. Nonfarm payrolls rose 130,000 in January, well above consensus forecasts of 70,000, and the unemployment rate eased to 4.3%. The data supports a patient policy stance as inflation risks persist. Investor focus now shifts to Friday’s CPI release for further direction on rates and risk appetite.

Asian Market Summary

Asian markets advanced, led by Japan where the Nikkei 225 surged to a record 58,000, extending its post-election rally on optimism around policy continuity and economic reform momentum. In China and Hong Kong, artificial intelligence shares rallied after major model upgrades and renewed policy support for broader AI adoption, with Zhipu AI jumping sharply following a new open-source release. Meanwhile, Japan’s wholesale inflation eased to 2.3% year on year in January, though yen-driven import costs and rising metals and food prices highlight ongoing price pressures influencing Bank of Japan policy expectations.

Currency Market Summary

The rand strengthened as markets digested firmer US labour data and positioned ahead of key inflation figures, with global currency moves shaping sentiment. The dollar struggled to hold gains despite a strong US jobs report, as investors interpreted resilience in the US economy as supportive of broader global growth. The yen led G10 performance, rallying more than 2.6% following Japan’s election outcome and renewed confidence in the policy outlook, while the Australian dollar and yuan also advanced, keeping the dollar on track for a weekly decline.

Commodity Market Summary

Oil prices firmed modestly amid renewed geopolitical risk as uncertainty around US–Iran relations persisted, although gains were capped by a sizeable US crude inventory build of 8.5 million barrels, well above expectations. The data signalled softer near-term demand or rising supply, tempering risk premium support. Gold eased as the US dollar strengthened following robust US employment data, which reduced expectations for imminent Federal Reserve rate cuts. Investors now await upcoming inflation figures for clearer guidance on the policy path and the outlook for real yields.

Capitec Bank Holdings Limited (CPI) +0.50%

Capitec expects FY2026 headline and basic earnings per share of 14 294–14 890 cents, up 20–25% year on year from 11 912 and 11 911 cents respectively, signalling robust operational execution despite fee reductions implemented in March 2025. Client growth and higher transaction volumes supported net transaction and commission income, while value-added services and Capitec Connect continued to scale. Improved macro conditions lifted lending activity, with new credit products and card growth driving disbursements. Insurance income strengthened alongside credit expansion. Results are due on or about 22 April 2026.

Aspen Pharmacare Holdings Limited (APN) -0.18%

Aspen reported a transitional H1 FY2026, with normalised EBITDA expected to decline 11–16% year on year from a high prior base, while NHEPS, HEPS and EPS are forecast to fall 19–24%, 33–38% and 36–41% respectively. Commercial Pharmaceuticals delivered 4% revenue growth and double-digit EBITDA expansion in constant currency, offset by restructuring costs of about R700 million in sterile manufacturing. Free cash flow exceeded R1.7 billion, reducing leverage below 3.5x. Full-year guidance remains intact, with stronger H2 momentum anticipated as manufacturing efficiencies emerge.

Pan African Resources PLC (PAN) +2.31%

Pan African expects interim EPS of 7.18–7.43 US cents and HEPS of 7.28–7.40 US cents for the six months to December 2025, surging 187–197% and 507–517% respectively year on year. The uplift reflects a 157% revenue increase, driven by a 61.6% rise in the average gold price to US$3,812/oz and 51.5% higher production to 128,296oz. Output is set to strengthen further in H2, with FY2026 guidance of 275,000–292,000oz supported by MTR expansion and Tennant Mines contributions. Results are scheduled for release on 18 February 2026.

Universal Partners (UPL) 0.00%

Universal Partners reported a NAV of £1.163 per share (ZAR26.09) at 31 December 2025, down from £1.196 year on year, with a six-month loss of £866,915 and headline loss per share of 1.19 pence. The period reflected a £25,618 fair value loss on SC Lowy loan notes, partially offset by a £197,466 reduction in performance fee provisions. Management fees totalled £460,694, while interest expense reached £129,989. Capital of £2.2 million was repaid on the term facility following partial realisation of SC Lowy shares.

City Lodge Hotels Limited (CLH) +1.24%

City Lodge Hotels expects H1 FY2026 adjusted headline earnings per share of 25.3–26.6 cents, up 29–36% year on year, reflecting stronger underlying trading momentum across its hotel portfolio. Basic and headline EPS are forecast at 20.7–22.0 cents, broadly flat versus 21.6 cents previously, as currency-related fair value adjustments distort statutory comparatives. The group highlights adjusted HEPS as its preferred operational metric, excluding unrealised foreign exchange movements. Results remain unaudited, with interim financials scheduled for release on or about 19 February 2026.

McDonald’s Corporation (MCD) -0.85%

McDonald’s reported stronger-than-expected fourth-quarter performance, with global comparable sales rising 5.7% versus 3.7% consensus, supported by value meals and effective promotional campaigns. US same-store sales increased 6.8%, marking the strongest growth in roughly two years, while international markets, including the UK and Australia, also delivered solid gains. Adjusted EPS of $3.12 beat estimates as revenue rose 10% to $7.01 billion. Management signalled confidence in its value strategy, plans 2,600 new openings in 2026, and expects operating margins in the mid-to-high 40% range.

Cisco Systems Inc. (CSCO) -0.84%

Cisco reported second-quarter revenue of $15.35 billion, ahead of expectations, but adjusted gross margin of 67.5% missed forecasts as higher global memory prices lifted component costs. Management has responded with price increases and revised contract terms, while highlighting robust AI-driven demand. Orders for Silicon One and optics underpin expectations of more than $5 billion in AI orders and over $3 billion in hyperscaler AI infrastructure revenue in FY2026. Full-year revenue guidance was raised to $61.2–$61.7 billion, signalling confidence despite near-term margin pressure.

T-Mobile US Inc. (TMUS) +5.07%

T-Mobile raised its 2027 outlook, projecting service revenue of up to $81.5 billion and adjusted free cash flow of $19.5–$20.5 billion, driven by demand for premium 5G plans and broadband bundles that include streaming benefits. Fourth-quarter revenue of $24.33 billion exceeded expectations, while 962,000 postpaid phone net additions led the US wireless sector, albeit slightly below forecasts. Management will shift reporting focus toward account growth and ARPA, which has risen 13% since 2020, despite postpaid churn edging up to 1.02%.

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