Intel jumps as US considers equity stake under CHIPS Act funding

South Africa

The Top 40 index lost 0.07% on Friday to close out the week at 94,498.4 points, while the All Share index ticked 0.04% lower to reach 101,950.3 points. South Africa’s economy likely recorded its third consecutive quarterly expansion, driven by renewed momentum in manufacturing and mining. Bloomberg consensus expects Q2 GDP growth of 0.4%, up from 0.1% in Q1. However, newly imposed US tariffs threaten this nascent recovery, particularly in autos, metals, and agriculture. In response, the Department of Trade, Industry and Competition launched an Export Support Desk to assist affected exporters with market diversification—though its effectiveness remains to be proven. Meanwhile, regulatory approval was granted for Barloworld’s R23.3 billion acquisition by a Saudi-linked, management-led consortium.

Europe

European equities ended marginally lower after retreating from multi-month highs, as weakness in tech and financial stocks offset select earnings-driven gains. The STOXX 600 fell 0.1%, with semiconductor shares under pressure after Applied Materials cut its earnings forecast, citing soft Chinese demand and tariff-related uncertainty. ASML, BE Semiconductor, and ASMI declined notably. In Russia, the state will transfer control of seized gold producer Uzhuralzoloto to a Gazprombank unit. Meanwhile, Standard Chartered shares fell 7.2% following US calls for an investigation into alleged sanctions violations, weighing on UK financial stocks.

United States

The Dow Jones closed higher, hitting an intraday record, buoyed by a nearly 12% rally in UnitedHealth after Berkshire Hathaway increased its holding. Broader indices slipped as mixed macro data clouded the Fed’s rate trajectory. July retail sales met expectations, but weak confidence and factory output flagged tariff pressures. A Trump–Putin meeting in Alaska raised hopes for a Ukraine peace deal and implications for energy markets. Berkshire reduced its Bank of America stake by 4.2%, while Intel gained on reports of possible government investment. Markets remain sensitive to policy signals.

Asia

Asian markets absorbed mixed signals, with Japan rebuffing US Treasury pressure to tighten monetary policy. Hong Kong's Q2 GDP rose 3.1% year-on-year, underpinned by strong exports during a temporary reprieve from US tariffs. However, China's July factory output slowed to an eight-month low, while retail sales also disappointed, intensifying expectations for further stimulus. Policymakers face growing economic headwinds, including adverse weather, US trade actions, sectoral overcapacity, and ongoing property market fragility. These dynamics are creating renewed pressure on Beijing to stabilise domestic demand and manage downside risks to growth.

Currencies

The rand strengthened against a broadly weaker US dollar on Friday, supported by firming gold prices and investor flight to safe-haven assets amid US fiscal concerns. The dollar retraced recent gains, closing the week 0.4% lower, as softer macro data reinforced expectations of a September Fed rate cut. CME FedWatch shows markets pricing in a 93% probability of a 25-basis-point reduction. While US producer prices exceeded forecasts, import cost data offered little dollar support. Markets now look to whether the Trump–Putin talks can de-escalate the Ukraine conflict and impact risk sentiment.

Commodities

Gold prices remained steady on Friday but posted a weekly loss as robust US inflation data dampened expectations for aggressive Fed easing. Market attention shifted to the Trump–Putin summit in Alaska, where the US President advocated for a full Ukraine peace deal over an interim ceasefire. In energy markets, oil prices are expected to open flat, with geopolitical implications from the summit under close scrutiny. Trump indicated a pause on oil-related sanctions targeting countries purchasing Russian crude, potentially reducing supply-side risk and influencing the near-term pricing outlook.

Vodacom Group Limited (VOD) -0.70%

Vodacom Group has secured Competition Appeal Court approval for its long-pending acquisition of a 30% stake in Maziv Proprietary Limited, the fibre infrastructure entity backed by CIVH. The ruling, delivered on 22 July 2025, supports the transaction subject to revised conditions agreed with the Competition Commission. This milestone follows over a year of regulatory reviews. Vodacom received conditional approval from ICASA in November 2022, and the deal now hinges on final unconditional consent from the communications regulator. Maziv owns key fibre assets, including Vumatel and Dark Fibre Africa.

STADIO Holdings (SDO) +1.60%

STADIO Holdings has issued a trading statement indicating a strong performance for the six months ended 30 June 2025. The group expects earnings per share to rise between 22.7% and 32.5% year-on-year, reaching between 20.0 and 21.6 cents. Headline earnings per share and core HEPS are both projected between 19.9 and 21.5 cents—up as much as 32.7% from 16.2 cents in H1 2024. The group attributes improvements to operational performance, with adjustments made for non-recurring items. Interim results are scheduled for release on 28 August 2025.

Sibanye-Stillwater Limited (SSW) -3.51%

Sibanye-Stillwater expects headline earnings per share (HEPS) for H1 2025 to rise over 19-fold year-on-year, reaching 180–200 SA cents. However, it will still report a basic loss per share of 120–133 SA cents due to impairments linked to US policy changes affecting PGM tax credits and lower lithium price forecasts. SA gold and PGM operations saw improved profitability, while US restructuring curbed losses. Group production was stable overall, though SA gold output fell 13%. Higher PGM prices in Q3 may lift earnings in H2 2025.

Aveng Limited (AEG) 0.00%

Aveng expects to report a full-year headline loss of A$83.8 million to A$87.2 million for the year ended 30 June 2025, versus headline earnings of A$38 million in FY 2024. The downturn stems from losses on the J108 and Kidston projects, a new warranty provision in Southeast Asia, and a A$11.9 million impairment on mining fleet disposals. A tax charge of A$15.1 million, due to exhausted New Zealand tax losses, also weighed on results. Diluted HEPS is projected at a loss of 63.3–67.2 cents. Results are expected on 19 August 2025.

South Ocean Holdings Limited (SOH) -12.00%

South Ocean has issued a trading statement for the six months ended 30 June 2025, warning of a sharp decline in earnings. Headline earnings per share are expected to fall by 170.7%, shifting from a profit of 21.50 cents in the prior period to a headline loss of 15.20 cents. Basic and diluted earnings per share are also expected to decline by the same margin. The significant deterioration points to operational or macroeconomic headwinds. Interim results are scheduled for release on or about 20 August 2025.

Intel Corporation (INTC) +2.93%

Intel shares climbed nearly 4% on Friday following reports that the US government is considering an equity stake in the chipmaker, potentially using funds from the 2022 CHIPS Act. The move follows a meeting between CEO Lip-Bu Tan and President Trump, who had earlier criticised Tan’s ties to Chinese firms. A federal stake would build on the $8 billion in subsidies Intel previously received to expand US manufacturing. While support could buy time for Intel’s struggling foundry unit, analysts warn of an uncompetitive product roadmap and weak client pipeline.

Kyivstar Group Limited (KYIV) -9.29%

Kyivstar shares fell over 9% after becoming the first Ukrainian company to list in the US, raising $178 million ahead of a high-stakes US–Russia summit. The mobile operator, majority-owned by VEON, said the Nasdaq listing was strategic in aligning Ukraine with US capital markets. CEO Oleksandr Komarov said peace talks could significantly boost valuation. Kyivstar, Ukraine’s largest telecoms firm with 24 million subscribers, has expanded its US footprint—adding Mike Pompeo to its board and partnering with Starlink. Market caution lingers, given Kyiv’s exclusion from the summit and ongoing geopolitical risks.

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