LOCAL MARKET COMMENTARY
The JSE Top 40 index declined 0.34%, closing at 74,869.9 points, while the All Share index slipped 0.28% to 83,466.6 points on Friday. South Africa is set to provide more frequent data on its agricultural sector following a sharp contraction in the third quarter that jeopardized the government’s economic growth targets. In response, the Department of Agriculture and key agricultural stakeholders are forming an Agricultural Conditions Committee to assess and improve sector performance, according to Wandile Sihlobo, chief economist at Agbiz.
EUROPEAN MARKET COMMENTARY
European markets suffered their steepest three-week decline on Friday, exacerbated by a rise in European government bond yields. Germany's 10-year bund yield climbed to its highest level since July 2024, reflecting investor caution. In the UK, fresh sanctions were announced against 15 individuals associated with Venezuelan President Nicolás Maduro’s regime, citing human rights violations and the undermining of democratic principles. Meanwhile, in Romania, large-scale protests erupted in Bucharest as tens of thousands demanded the reinstatement of the cancelled presidential election and the resignation of outgoing President Klaus Iohannis.
US MARKET COMMENTARY
U.S. equities tumbled on Friday, with the S&P 500 erasing its 2025 gains following a robust labor market report that raised inflationary concerns. December’s non-farm payrolls showed stronger-than-expected job growth, with the unemployment rate falling to 4.1%, potentially signalling faster economic growth. The Federal Reserve may maintain a cautious approach to rate cuts to combat persistent inflation. Energy stocks were the sole bright spot, rising 0.34%, while a dip in consumer sentiment to 73.2 in January, as per the University of Michigan survey, added to the negative sentiment.
ASIA MARKET COMMENTARY
Asia-Pacific markets opened lower this morning. China surprised markets with December trade data, reporting a 10.7% increase in exports and a 1% rise in imports, both exceeding expectations. Despite positive trade figures, investor focus remains on Chinese bond yields after the central bank ceased government bond purchases last Friday, leading to record-low 10-year yields this month. Elsewhere, India is set to release inflation data, while Japanese markets remain closed for a public holiday.
CURRENCY MARKET COMMENTARY
The South African rand weakened to an eight-month low on Friday, reflecting expectations that the Federal Reserve will hold off on rate cuts this month. In the UK, sterling fell for a fourth consecutive session, pressured by higher global borrowing costs and solid U.S. labor market data, while gilt yields climbed for a fifth day. The U.S. dollar began the week on a strong note, supported by a robust jobs report that underscored the resilience of the U.S. economy relative to its global counterparts.
COMMODITY MARKET COMMENTARY
Gold prices remained steady as a robust U.S. labor market report reinforced the Federal Reserve’s cautious stance on monetary easing, though geopolitical uncertainties supported safe-haven demand. Oil continued its rally, with Brent crude surpassing $81 per barrel, driven by expanded U.S. sanctions potentially disrupting Russian crude exports to key markets like China and India. Meanwhile, Malaysia imposed anti-dumping duties ranging from 2.52% to 36.80% on specific flat-rolled steel products imported from China, India, Japan, and South Korea.
Renergen Limited (REN) -8.08%%
Renergen has addressed recent news and social media speculation, reaffirming its operational progress and financial stability. The Phase 1 plant continues to produce and sell LNG while liquefying helium at a verified purity of 99.999%. Cooling of the helium Iso-container is progressing as planned, despite limited efficiency due to operating below nameplate capacity. The company is actively working to connect additional wells to boost efficiency and support future Phase 2 developments. Current helium production stands at approximately 75 kg per day, with increases expected as capacity improves. Renergen also assured shareholders of accessible funding and clarified that the company is not engaged in any business rescue discussions. Stakeholders are advised to rely on official statements for accurate information.
Northam Platinum Holdings Limited (NPH) +2.88%
Northam Platinum Holdings has announced that the Public Investment Corporation SOC Limited (PIC) now holds a 20.186% beneficial interest in the company’s total issued share capital. The company has filed the necessary notifications with regulatory bodies, including the Takeover Regulation Panel and the Companies and Intellectual Property Commission. Northam’s board has verified the accuracy of this announcement and confirmed compliance with all legal and regulatory requirements.
Walgreens Boots Alliance Inc. (WBA) +27.55%
Walgreens reported fiscal first-quarter earnings and revenue that surpassed expectations, driven by growth across its three business segments and ongoing cost-cutting measures, including store closures. Despite the strong performance, the company reaffirmed its fiscal 2025 adjusted earnings guidance of $1.40 to $1.80 per share, with no updates to its annual sales outlook of $147 billion to $151 billion, announced in October. First-quarter sales totalled $39.46 billion, a 7.5% increase year-over-year, supported by a 6.6% rise in U.S. retail pharmacy sales to $30.87 billion, exceeding analyst estimates of $29.21 billion. The U.S. health-care segment grew over 12% to $2.17 billion, surpassing expectations of $2.09 billion, while the international unit saw a 10.2% increase to $6.43 billion, topping estimates of $5.85 billion. Despite the revenue growth, Walgreens posted a net loss of $265 million, or 31 cents per share, compared to a loss of $67 million, or 8 cents per share, in the prior-year period.
Taiwan Semiconductor Manufacturing Company Limited (2330) 0.00%
Taiwan Semiconductor Manufacturing, the world’s largest contract chipmaker, reported fourth-quarter 2024 revenue of T$868.42 billion ($26.36 billion), surpassing market forecasts and aligning with its own expectations. This represents a 34.4% year-on-year growth, driven by strong demand for AI-related applications, despite a decline in pandemic-driven consumer electronics demand. Revenue exceeded the LSEG SmartEstimate of T$853.57 billion ($25.90 billion) and marked a significant increase from $19.62 billion in the same period last year. December revenue alone surged 57.8% year-on-year to T$278.16 billion. Full fourth-quarter earnings and an updated outlook for 2025 will be released on January 16
Would you prefer a full in-depth report that you can read offline? Click here to download the full report.