GSK to Invest $30 Billion in US R&D and Supply Chain Over Five Years

South Africa

The JSE All Share Index reached a new record high exceeding 105,000 points, maintaining these levels throughout most of the trading day. At the close, the All Share index added 0.2% to close at 104,884.98 points. The Top 40 index posted a 0.21% gain to reach 97,499.96 points. Meanwhile, MTN Group is advancing its artificial intelligence infrastructure plans in Africa by negotiating with US and European firms to develop data centres across the continent, with the company set to contribute direct funding to the project. Additionally, South Africa’s bond market is experiencing significant investor interest, with R41.3 billion in inflows recorded last week — a record intraday level — while credit default swap costs have hit their lowest point in over seven years.

Europe

European equities experienced significant declines on Tuesday, with the pan-European STOXX 600 index finishing 1.15% lower at 550.73, marking a one-week low. Rate-sensitive sectors such as financials, banks, and insurance led the downturn, posting losses between 2% and 2.1%, amid investor caution ahead of the US Federal Reserve’s policy announcement. Despite the market pullback, economic data showed some resilience. Eurozone industrial production rose 0.3% month-on-month in July, while German economic sentiment improved to 37.3 points, exceeding expectations. In the UK, payroll numbers continued their seventh consecutive monthly decline, though there were signs of potential future hiring activity.

United States

US stock markets ended lower on Tuesday amid cautious trading ahead of the Federal Reserve’s anticipated 25 basis point interest rate cut, scheduled for Wednesday. Despite stronger-than-expected August retail sales data, market expectations for the rate cut remained unchanged. Major indexes experienced declines, with UnitedHealth Group shares falling 2.3% and Nvidia dropping 1.6%, contributing to the Dow’s weakness. Nvidia’s decline followed reports of soft demand for its new AI chips in China. The CBOE Volatility Index rose to 16.04, its highest level in over a week. Notably, despite Tuesday’s losses, all three main indexes had posted gains in September, defying the month’s traditionally negative market sentiment. The S&P 500 and Nasdaq had previously reached record highs on Monday.

Asia

Asia-Pacific markets traded mixed on Wednesday as investors awaited the US Federal Reserve’s expected interest rate cut. Japanese exports showed some resilience in August, falling only 0.1% year-on-year — better than the expected 1.9% decline. Imports decreased by 5.2%, which was softer than the previous month’s 7.4% drop. However, the country continues to face challenges due to US tariffs and earlier export front-loading. Political uncertainty in Japan deepened as Prime Minister Shigeru Ishiba announced his resignation following electoral losses by the ruling Liberal Democratic Party. Singapore’s non-oil exports fell sharply by 11.3% year-on-year, missing expectations and driven down by weaker demand for machinery, food products, and petrochemicals.

Currencies

The South African rand was steady on Tuesday, with investors awaiting inflation data and an interest rate decision later this week. Meanwhile, the US dollar weakened as markets anticipated a Federal Reserve rate cut, expected to be 0.25 percentage points, bringing the benchmark interest rate to 4.00%-4.25%. The euro surged to a four-year high against the dollar, and oil prices remained firm due to Ukrainian drone attacks on Russian refineries. Investors are focused on Fed Chair Jerome Powell's comments on US monetary policy.

Commodities

Gold prices eased on Wednesday following a slight dollar strengthening and profit-taking after reaching record highs on expectations of a Federal Reserve rate cut. Oil prices remained stable amid geopolitical tensions and anticipation of the Fed’s decision. In South Africa, Transport Minister Barbara Creecy granted extended access to major oil companies like BP and Vitol at the Island View Precinct in Durban port. This move resolves long-standing lease issues and secures 70% of the country’s fuel imports, ensuring supply stability and investment security.

Attacq Limited (ATT) -1.27%

Attacq delivered strong financial performance for FY25, with distributable income per share up 25.6% to 108.3p and dividend per share increasing 26.1% to 87.0p. Net operating income rose 14.0%, supported by robust occupancy (91.6%) and 100% collections. Development pipeline at Waterfall City totals 90,664m² with a R2.3bn investment. Gearing improved to 25.3% and interest cover strengthened to 2.95x. Key transactions included full-year benefits from the Waterfall City GEPF deal and Mall of Africa acquisition completion. Renewable energy contribution grew to 9.1% of total energy mix.

Hyprop Investments Limited (HYP) +1.77%

Hyprop delivered robust FY2025 results, with distributable income rising 7.5% to R1.51 billion, exceeding guidance. The total dividend increased 9.9% to 307.7 cents per share, while distributable income from the Eastern European portfolio surged 24%. South African portfolio operating income grew 11%, supported by 5.5% tenant turnover growth and 6.8% trading density expansion. Eastern Europe demonstrated strong performance with 6.6% tenant turnover growth and minimal 0.1% retail vacancies. The Group maintained a solid balance sheet, reducing LTV to 33.6% and achieving an improved average borrowing cost of 9.0% (ZAR) and 4.2% (EUR). Significant ESG initiatives included major energy projects and waste reduction efforts, with recycling rates reaching 77%. FY2026 guidance projects a 10–12% increase in DIPS.

Libstar Holding Limited (LBR) +14.47%

Libstar reported strong H1 2025 results amid a challenging market environment characterised by food inflation and constrained consumer spending. Revenue grew 6.7% to R5.96 billion, with gross profit margin expanding 0.9 percentage points to 21.6%. Normalised EBITDA increased 7.5% to R464.6 million, while normalised operating profit rose 16.7% to R296.3 million. Key performance metrics showed improvement, with normalised EPS up 7.4% to 21.7 cents and normalised HEPS increasing 15.4% to 23.2 cents. The company maintained market share leadership in dairy, wet and dry condiments segments. Strategic initiatives included effective cost management, enhanced raw material procurement, and successful innovation in food service and retail channels. Strong cash generation was supported by disciplined capital allocation and normalised dairy inventory levels.

Premier Group Limited (PMR) +4.44%

Premier expects a significant increase in financial performance for H1 FY2026, with projected EPS and HEPS ranging between 526–569 cents, marking a 20–30% improvement compared to the 438 cents reported in H1 FY2025. The Group anticipates mid-single-digit revenue growth despite soft-commodity price deflation. The positive outlook is underpinned by the company’s strategic focus on capital investment discipline, margin management, operational efficiencies, and cost-saving initiatives. These measures have supported the sustained compound growth in earnings since listing. The company will release its full results on or about 11 November 2025.

RFG Holdings Limited (RFG) +7.14%

RFG reported an overall revenue growth of 2.4% for the 11 months ended August 2025, driven by a 5.1% increase in the regional segment and an 8.4% decline in the international segment. The regional segment benefited from volume growth of 5.0% and price inflation of 0.4%, with strong performance in ready meals and pies. Long-life foods showed mixed results, with fruit juice and dry foods delivering solid growth while meat and vegetable categories lagged. The international segment faced challenges due to global oversupply of deciduous fruit and trade tariff uncertainties affecting US shipments. Export volumes declined 7.7%, though there was some recovery in the latter part of the period. The ongoing pineapple production recovery in Eswatini remains slower than expected. Management remains focused on achieving a 10% operating profit margin target despite challenging trading conditions. The group’s full-year results for the period ending 28 September 2025 will be released around 19 November 2025.

GSK Plc (GSK) -1.08%

GSK announced a $30 billion investment in US research, development, and supply chain infrastructure over five years. Key components include a $1.2 billion factory in Upper Merion, Pennsylvania (construction start 2026) for respiratory and cancer drugs. Investments will also focus on AI, digital technologies, and manufacturing capabilities across existing US sites. The move follows US President Trump’s visit to Britain and aims to strengthen life sciences leadership between the US and UK. GSK expects the US to become its top market for clinical trials in the next five years.

VTB Bank (VTBR) 0.00%

VTB, Russia’s second-largest bank, initiated book-building for a secondary public offering (SPO) targeting up to ₽93.4 billion ($1.13 billion). The offering comprises approximately 1.26 billion ordinary shares at a maximum price of ₽73.9 each, representing nearly 24% of the total share count. Proceeds will bolster capital adequacy ratios following elevated credit losses due to high interest rates. The state, holding over 50%, will not participate in the offering. Book-building runs from 16–18 September, with trading expected to commence on 19 September.

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