In today's Taking Stock, Saudi Aramco reported a 4.6% drop in first-quarter profit, posting a net profit of 97.54 billion riyals ($26.01 billion) for the three months ending March 31.
Local Market Commentary
South African equities closed higher on Friday, with the Top 40 and All Share indices gaining 1.1% and 1.07% respectively, ending at 84,383.5 and 91,861.2 points. Regulatory and governance developments dominated headlines: the JSE issued a cease and desist notice to Mantengu Mining following the company’s criminal complaint accusing exchange officials of shielding a syndicate allegedly manipulating its share price and attempting to derail its Blue Ridge Platinum acquisition. Separately, Raubex postponed its full-year results release due to a whistleblower report alleging improper conduct. In the energy sector, Nersa approved NTCSA’s proposal to curtail generation in congested grid areas, unlocking 3,470MW of new capacity—an important step towards alleviating load shedding and enhancing energy reliability.
European Market Commentary
European equities ended the week on a strong note, with the STOXX 600 up 0.4% and Germany’s DAX reaching a record high, gaining 0.6% on the day and 1.7% for the week, amid optimism over easing global trade tensions ahead of US-China discussions. However, sentiment in the UK labour market weakened, with the CIPD’s employment intentions index dropping to +8—its lowest level outside the pandemic—amid fiscal pressure and global uncertainty. Meanwhile, Switzerland and the US have agreed to expedite bilateral trade talks, signalling intent to swiftly reduce tariffs following constructive negotiations.
U.S. Market Commentary
US equities ended the week largely flat on Friday amid investor caution ahead of weekend trade talks between the US and China, with sentiment subdued by President Trump's tariff rhetoric. Despite ongoing volatility since the initial tariff announcements, markets have recovered to near pre-announcement levels, buoyed by strong corporate earnings—76% of S&P 500 firms reporting so far have beaten expectations. However, uncertainty has prompted many companies to revise or withdraw forward guidance. Energy outperformed on rising oil prices, while healthcare lagged. The Fed maintained rates but flagged growing economic risks tied to trade policy, with attention now turning to Tuesday’s CPI data for clues on the Fed’s next steps.
Asia Market Commentary
Asia-Pacific markets advanced on Monday following the White House’s announcement of a “trade deal” with China, though details remain vague. Both sides described the outcome positively, with the US aiming to narrow its trade deficit and China highlighting an “important consensus.” U.S. Treasury Secretary Scott Bessent called the talks “productive,” while Chinese Vice Premier He Lifeng promised a joint statement with “good news for the world.” Meanwhile, Japan reported a current account surplus of ¥3.68 trillion in March, broadly in line with expectations but below the prior month’s record surplus.
Commodity Market Commentary
Gold prices dipped on Monday as positive developments in U.S.-China trade talks shifted investor focus away from safe-haven assets to riskier investments. Oil prices rose, buoyed by optimism that the trade dispute between the two largest crude consumers may be nearing resolution, with market sentiment lifting after both sides highlighted progress in the talks. Oil gained over $1 on Friday and rose more than 4% last week, marking its first weekly increase since mid-April, supported by a U.S. trade deal with the UK that helped mitigate concerns over the economic impact of U.S. tariffs.
Currency Market Commentary
The South African rand remained steady on Friday as market attention shifted towards U.S.-China trade talks, following optimism sparked by a U.S.-UK trade deal that raised hopes for broader tariff progress. On Monday, the dollar strengthened in early Asian trading after the weekend's U.S.-China discussions alleviated trade war concerns. The pound also gained on Friday, buoyed by the announcement of a "breakthrough" bilateral trade agreement between the U.S. and the UK. The deal, announced by President Trump and UK Prime Minister Keir Starmer, retains U.S. tariffs on British exports while expanding agricultural access and reducing tariffs on British car exports.
Sibanye Stillwater Limited (SSW) +0.48%
Sibanye Stillwater Limited delivered a strong Q1 2025 performance, reporting an 89% year-on-year increase in Group adjusted EBITDA to R4.1 billion (US$222 million), underpinned by strategic restructuring and commodity diversification. South African gold operations recorded a 178% rise in EBITDA to R1.8 billion, driven by favourable gold prices, while the SA PGM division achieved a 74% increase to R2.5 billion, supported by ongoing cost optimisation. US PGM operations improved in commercial viability amid restructuring, and the Century operation contributed R178 million in EBITDA. Strategic progress in Europe was marked by continued advancement of the Keliber and GalliCam lithium projects, the latter securing a conditional €144 million grant. Keliber’s 2025 capex is estimated at €300 million, with commissioning targeted for H1 2026, positioning the Group for improved free cash flow in 2026 as capital intensity declines. Notably, safety performance achieved record levels, reinforcing operational resilience.
Newpark REIT Limited (NRL) 0.00%
Newpark REIT Limited has issued a trading statement ahead of its FY2025 results, indicating that funds from operations per share (FFOPS) are expected at 78.37 cents, the upper end of prior guidance. This outcome, driven by lower than expected operating costs, enables the Group to declare a full-year dividend of 78.37 cents per share, representing a 100% payout ratio and an 11.4% increase on the prior year. A final dividend of 48.37 cents is anticipated, subject to board approval. The unaudited financial results for the year ended 28 February 2025 are expected to be published on SENS on or about 16 May 2025.
Mantengu Mining Limited (MTU) +1.72%
Mantengu Mining Limited (JSE: MTU) has lodged a criminal complaint with the Hawks against certain JSE executives and other parties, citing alleged share price manipulation aimed at suppressing the Company’s valuation. This action follows an 18-month investigation by Mantengu and its advisors. The Company alleges that its concerns were repeatedly disregarded by the JSE, including a blocked SENS release and unaddressed reports of fronting via entities such as SEAM and Liberty Coal. MTU also claims evidence of a naked short facilitated by share borrowing from its largest shareholder. The Company maintains that its undervaluation—highlighted in its recent trading statement—stems from market interference rather than underlying performance. The Board has reiterated its commitment to transparency, compliance, and pursuing all legal avenues to safeguard shareholder value.
Saudi Arabian Oil Company (2222) +0.64%
Saudi Aramco reported a 4.6% drop in first-quarter profit, posting a net profit of 97.54 billion riyals ($26.01 billion) for the three months ending March 31, impacted by lower sales and higher operating costs amid economic uncertainty in the crude markets. The result exceeded the median analyst estimate of $25.36 billion. The company confirmed total dividends of $21.36 billion for Q1, with $219 million linked to performance. Aramco's free cash flow fell 15.8% to $19.2 billion, while capital expenditure rose 15.9% to $12.5 billion. The company expects total dividends of $85.4 billion in 2025, a significant decrease from the previous year's payout of over $124 billion. Aramco's performance-linked dividends were drastically reduced by 98% due to declining free cash flow. The Saudi government holds approximately 81.5% of Aramco, with the Public Investment Fund (PIF) controlling an additional 16%.
Panasonic Holdings Corporation (6752) +2.12%
Panasonic Holdings announced plans to cut 10,000 jobs, both in Japan and internationally, as part of a major restructuring effort aimed at improving profitability. The company expects restructuring costs of 130 billion yen ($896.06 million) in the current business year. The job cuts will result from consolidating sales, indirect operations, and business sites, as well as voluntary retirements in Japan. Panasonic aims to achieve a return on equity of 10% by the fiscal year ending March 2029 and has set a target of at least 600 billion yen in adjusted operating profit by fiscal 2027. The company also forecast a 39% increase in operating profit for its electric vehicle battery business, driven by higher sales of batteries and energy storage systems. Despite these initiatives, Panasonic expects a 13% decline in overall operating profit for the current fiscal year to 370 billion yen.
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