Honda Motor slides on massive EV charges that threaten first loss in decades

South African Market Summary

The JSE All Share Index declined 0.38% to close at 116,948.44, while the Top 40 Index fell 0.29% to 109,287.25. South Africa recorded its first current account surplus in more than two years during the fourth quarter of 2025, supported by higher precious metal prices. The current account shifted to a surplus of 0.6% of GDP from a deficit of 0.9% in the prior quarter, with the trade surplus widening to R282.2 billion. Separately, Woolworths Holdings announced that CEO Roy Bagattini will retire in September, with Sam Ngumeni appointed as successor.

European Market Summary

European equities declined on Thursday as rising oil prices and escalating Middle East tensions renewed concerns over inflation and interest rate risks. The pan-European STOXX 600 closed 0.6% lower, marking its seventh decline in nine sessions and extending losses to roughly 5.6% since the conflict began, while regional volatility remained elevated. Defence group Leonardo rose 5.7% to a record high after signalling strong growth in orders, revenue and core profits. Separately, UK housing demand weakened, with new buyer enquiries falling to a net balance of -26 in February, reflecting concerns over higher mortgage rates and energy costs.

US Market Summary

U.S. equities declined sharply on Thursday as Iranian strikes on oil tankers drove crude prices toward $100 per barrel, heightening inflation concerns and triggering a broad market sell-off. All three major indices fell more than 1.5%, with the S&P 500 recording its largest three-day decline in a month as losses extended across most sectors outside energy and select defensives. Investor focus is now shifting to the upcoming Federal Reserve meeting on 17 March, where policymakers are expected to hold rates steady. Markets will closely monitor updated economic projections and upcoming data releases, including consumer sentiment and the PCE inflation report.

Asian Market Summary

Asia-Pacific markets opened lower on Friday as oil prices surged amid concerns that prolonged Middle East conflict could disrupt energy supplies and weigh on global growth. In India, retail inflation rose to 3.21% year-on-year in February, driven by higher food, personal care and precious metal prices, though remaining below the Reserve Bank of India’s 4% target. Elevated oil prices continue to pose upside inflation risks. Separately, Russian oil producer Tatneft reported a 48.1% decline in full-year 2025 net profit to 158.62 billion roubles, reflecting weaker profitability in the energy sector.

Currency Market Summary

The South African rand weakened on Thursday as escalating Middle East tensions and surging oil prices heightened inflation concerns and reduced risk appetite across emerging markets. The U.S. dollar strengthened and is on track for a second consecutive weekly gain since the onset of the Iran conflict, supported by safe-haven demand. The euro traded near its weakest level since November, while the Japanese yen approached levels that have previously triggered intervention concerns. The dollar index reached its highest level since November, reflecting both defensive flows and the United States’ position as a net energy exporter.

Commodity Market Summary

Oil prices eased on Friday after the United States issued a 30-day licence allowing countries to purchase Russian oil currently stranded at sea, alleviating near-term supply concerns. The move followed the U.S. Energy Department’s decision to release 172 million barrels from the Strategic Petroleum Reserve to stabilise prices amid the Iran conflict. Australia also announced the release of petrol and diesel from domestic reserves to mitigate supply disruptions. Meanwhile, gold prices rose on a weaker dollar and softer Treasury yields, although the metal remains on track for a second consecutive weekly decline.

Standard Bank Group Limited (SBK) +0.20%

Standard Bank Group reported FY2025 headline earnings of R49.2 billion, with headline earnings per share increasing 12% and return on equity rising to 19.3%, at the upper end of its 17%–20% target range. Performance was supported by solid balance sheet growth, strong fee and trading income, lower credit impairments and disciplined cost management. The group maintained a strong CET1 ratio of 13.8% and increased its full-year dividend by 12% to 1 695 cents per share. Management expects mid-to-high single-digit banking revenue growth in FY2026 and a further improvement in return on equity.

Sanlam Limited (SLM) -3.70%

Sanlam delivered solid operational performance in FY2025 despite currency volatility and structural changes. Net result from financial services increased 3% to R15.9 billion (20% normalised), supported by strong contributions from life insurance, investments and credit operations. Group new business volumes rose 18% to nearly R500 billion, reflecting robust asset management inflows and diversified distribution capabilities. Headline earnings declined 18% due to lower disposal gains and the impact of a stronger rand on investment returns. The group declared a final dividend of 485 cents per share, up 9%, while advancing its Vision 2030 strategy focused on growth across emerging markets.

Resilient REIT Limited (RES) -2.62%

Resilient REIT reported solid FY2025 performance, with total dividends increasing 11.4% to 490.42 cents per share following a 244.70 cents final dividend. South African comparable net property income rose 8.1%, supported by strong tenant demand, disciplined asset management and the group’s energy strategy mitigating rising administered costs. Portfolio vacancies remained low at 1.9%, while lease renewals and new leases achieved positive rental reversions. Offshore assets also contributed positively, with Lighthouse dividends rising 7.5% in euro terms. The group continues expanding solar and battery capacity across its portfolio to enhance energy resilience and operational efficiency.

Southern Palladium Limited (SDL) -1.78%

Southern Palladium reported interim revenue of A$668,681 for the six months to 31 December 2025, up 24.8% year-on-year, primarily reflecting higher interest income. The operating loss widened to A$5.03 million as the company continued advancing development activities at its Bengwenyama PGM project in South Africa’s Bushveld Complex, where it holds a 70% stake. During the period, the group raised approximately A$20.1 million through a two-tranche share placement and share purchase plan to support project development. Management continues progressing the Definitive Feasibility Study and regulatory approvals as part of the project’s staged development strategy.

Montauk Renewables Inc. (MKR) -1.50%

Montauk Renewables reported FY2025 revenue of $176.4 million, broadly stable year-on-year, while EBITDA declined 21.2% to $32.3 million. Headline earnings fell 60.4% to $4.4 million, with earnings per share decreasing to $0.01 from $0.07 in the prior year, reflecting margin pressure despite steady revenue generation. Headline earnings per share declined to $0.03, down 62.5% year-on-year. Net asset value per share increased modestly to $1.84 from $1.79, indicating a resilient balance sheet despite weaker profitability. The results highlight operational stability alongside earnings pressure during the period.

Honda Motor Company Limited (HMC) -5.27%

Honda Motor shares fell more than 6% after the company warned it could report its first annual loss in nearly 70 years as a listed company, driven by restructuring costs linked to its electric vehicle strategy. The automaker expects charges of up to ¥2.5 trillion ($15.7 billion) after cancelling three planned EV models for production in the United States, with ¥1.3 trillion expected this fiscal year and ¥1.2 trillion the next. Honda is also writing down its China operations as competition intensifies from domestic EV manufacturers such as BYD.

Dollar General Corporation (DG) -6.14%

Dollar General shares declined about 7% after the retailer issued cautious FY2026 sales guidance, reflecting softer consumer demand as lower-income shoppers become increasingly selective amid cost-of-living pressures and labour market uncertainty. The company expects same-store sales growth of 2.2%–2.7%, broadly in line with market expectations. Fourth-quarter comparable sales rose 4.3%, ahead of forecasts, while earnings of $1.93 per share exceeded estimates of $1.65. Management expects FY2026 earnings of $7.10–$7.35 per share, signalling stable profitability despite inflationary pressures and evolving consumer spending patterns.

Dick’s Sporting Goods Inc. (DKS) +1.06%

Dick’s Sporting Goods shares rose in premarket trading after the retailer reported stronger-than-expected quarterly results and forecast FY2026 sales above market estimates. Fourth-quarter revenue increased to $6.23 billion, supported by the inclusion of Foot Locker and resilient demand for athletic footwear and apparel, while adjusted EPS of $3.45 exceeded forecasts. The company expects FY2026 net sales of $22.1–$22.4 billion, ahead of consensus, although profit guidance of $13.50–$14.50 per share was slightly below expectations. Expansion plans remain robust, with approximately 36 new House of Sport and Field House locations planned for 2026.

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