Campbell’s Cuts Full-Year Sales and Profit Outlook as Snack Sales Slip

South African Market Summary

South African equities declined on the day, with the JSE All Share Index falling 1.85% to 117,398.52 and the Top 40 losing 1.99% to 109,599.71. Harmony Gold reported interim results showing a 13% increase in half-year profit as higher gold prices offset lower production and grades, enabling the miner to more than double its dividend while delivering maiden copper output as part of its diversification strategy. Meanwhile, labour tensions resurfaced after the National Union of Mineworkers opposed potential job cuts at Samancor, while FlySafair announced a temporary fuel surcharge amid surging jet fuel prices linked to escalating Middle East tensions and oil trading above $100 per barrel.

European Market Summary

European equities closed lower as investors assessed the economic implications of the escalating Middle East conflict alongside mixed inflation data. The pan-European STOXX 600 declined 0.6%, while the UK’s FTSE 100 fell 0.5% and the FTSE 250 lost 0.4%, as rising oil prices and weaker corporate earnings weighed on sentiment. German inflation eased slightly to 2.0% in February, while U.S. inflation broadly met expectations. In the UK, housing market momentum weakened, with the Royal Institution of Chartered Surveyors reporting new buyer enquiries falling to a net balance of -26 amid concerns over higher energy costs and potential mortgage rate increases.

US Market Summary

U.S. equities closed mixed as investors focused on escalating geopolitical tensions in the Middle East despite a benign inflation reading. The Dow Jones Industrial Average declined, recording the steepest drop among the major indices, while semiconductor stocks supported a marginal gain in the technology-heavy Nasdaq. The Consumer Price Index confirmed inflation remained moderate and broadly in line with expectations, with annual growth now close to the Federal Reserve’s 2% target. However, markets largely discounted the data as it preceded the U.S.–Israeli conflict with Iran, which has pushed oil prices higher and raised concerns about renewed inflationary pressures.

Asian Market Summary

Asian equities declined broadly as oil prices surged 9% to above $100 per barrel following reports of attacks on vessels in Gulf waters and the closure of key oil terminals, heightening global inflation and interest-rate concerns. In corporate developments, Shenzhen-listed Delton Technology (Guangzhou) announced plans to raise up to HK$3.31 billion through a Hong Kong listing, offering 46 million H shares. Separately, Singapore-based logistics group GLP is reportedly exploring a Hong Kong IPO that could value the company at around $20 billion. Meanwhile, Taiwan’s investment fund industry expects assets under management to expand significantly, potentially reaching T$30 trillion within three years.

Currency Market Summary

Currency markets reflected heightened geopolitical risk as the South African rand weakened against a firm U.S. dollar following in-line U.S. inflation data. The dollar remained near its strongest levels of the year as rising oil prices increased concerns that inflation could reaccelerate and delay global interest-rate cuts. The Japanese yen weakened past ¥159 per dollar, approaching its softest level since July 2024. Oil market volatility intensified amid escalating Middle East tensions and disruption to shipping through the Strait of Hormuz, raising concerns that sustained energy price increases could weigh on global growth and reinforce a more hawkish central bank policy outlook.

Commodity Market Summary

Commodity markets remained volatile as geopolitical tensions continued to influence pricing dynamics. Gold held broadly steady, recovering from an earlier decline of nearly 1%, as a firmer U.S. dollar and expectations of delayed interest rate cuts weighed on sentiment. Oil prices extended gains after reports that Iranian explosive-laden boats struck two fuel oil tankers in Iraqi territorial waters, intensifying supply concerns linked to the U.S.–Israeli conflict with Iran. In response to the disruption, the International Energy Agency agreed to release a record 400 million barrels from strategic reserves, with the United States contributing 172 million barrels from its Strategic Petroleum Reserve.

Harmony Gold Mining Company Limited (HAR) -11.07%

Harmony Gold Mining Company Limited reported strong interim results for the six months ended 31 December 2025, supported by elevated gold prices and improved operational profitability. Operating profit rose 61% to R16.1 billion as the average gold price increased 36%, driving revenue growth of 20% to R44.4 billion. Gold production declined 9% to 22,522kg due to temporary operational challenges, while all-in sustaining costs increased 21% in line with guidance. The company declared a record interim dividend of 530 SA cents per share following a revised policy targeting up to 50% of net free cash flow, while advancing copper growth through the CSA mine and Eva Copper project.

OUTsurance Group Limited (OUT) +4.87%

OUTsurance Group Limited reported solid interim results for the six months ended 31 December 2025, reflecting resilient underwriting performance across its multinational property and casualty insurance operations. Normalised earnings increased 7.7% to R2.32 billion, while the group delivered a strong normalised return on equity of 32.3%. The interim dividend rose 36.2% to 120.7 cents per share, supplemented by a special dividend of 30.3 cents following the monetisation of non-core assets. Subsidiary OUTsurance Holdings reported a 12.6% rise in normalised earnings to R2.50 billion, supported by strong South African performance despite weather-related volatility in Australia.

Supermarket Income REIT plc (SRI) -1.15%

Supermarket Income REIT plc reported stable interim performance for the six months ended 31 December 2025, supported by continued portfolio expansion and inflation-linked rental growth. Annualised passing rent increased 11% to £132.0 million, while the portfolio valuation rose 27% to £2.06 billion following acquisitions. EPRA earnings per share declined 10% to 2.7 pence, reflecting the enlarged asset base, while headline earnings per share increased 4.2%. The company declared a dividend of 3.09 pence per share, broadly in line with the prior period. EPRA net tangible assets increased modestly to 87.5 pence per share, with loan-to-value rising to 45%.

Growthpoint Properties Limited (GRT) -2.22%

Growthpoint Properties Limited reported steady interim performance for the six months ended 31 December 2025, supported by improving property sector fundamentals and lower financing costs. Distributable income increased 2.1% to R2.6 billion, with distributable income per share rising 2.3% to 75.7 cents. Total revenue grew 2.4% to R6.6 billion, reflecting improved net property income across South African retail, office and industrial sectors. The company increased its interim dividend by 8.5% to 66.2 cents per share. Net asset value declined 2.2% to 1,945 cents per share, impacted by portfolio revaluations and the acquisition of Auria Senior Living.

Campbell’s Company (CPB) -7.05%

Campbell’s Company lowered its full-year sales and profit forecasts as weaker consumer demand, particularly in its snacks division, weighed on performance. Quarterly net sales declined 5% to $2.56 billion, while adjusted earnings of 51 cents per share missed expectations. Snack division revenue fell 6% amid shipment delays and reduced spending by price-sensitive consumers following recent price increases. The group also suspended share buybacks to prioritise debt reduction, with total debt standing at $7.08 billion. Management now expects fiscal 2026 organic net sales to decline 1%–2% and adjusted EPS of $2.15–$2.25, citing tariff pressures and softer demand.

Nvidia Corporation (NVDA) +0.68%

Nvidia announced a $2 billion investment in artificial intelligence cloud provider Nebius, acquiring an approximately 8.3% stake at $94.94 per share as it expands its presence across the AI infrastructure ecosystem. Nebius, an existing Nvidia customer, plans to deploy more than 5 gigawatts of data centre capacity by 2030, reflecting accelerating demand for AI computing power. The investment highlights Nvidia’s strategy of backing emerging “neocloud” providers supplying hyperscalers such as Microsoft and Meta. Nebius also reported a sharp rise in capital expenditure to $2.1 billion in the December quarter as it accelerates infrastructure expansion.

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