In today's Taking Stock, General Mills announced it will eliminate artificial colors from its entire U.S. retail product range by the end of 2027, with synthetic dyes removed from all cereals and foods served.
Local Market Commentary
The JSE Top 40 fell 0.81% on Tuesday to close at 87,147.3 points, while the All Share index slipped 0.7% to 94,657.1 points. Investor caution dominated ahead of Wednesday’s key consumer inflation and retail sales data, which may influence the SARB’s stance, though its next rate decision is only due in late July. JSE data showed offshore investors sold a net R12.22 billion in local equities last week, highlighting sustained outflows. Virgin Active confirmed the closure of three clubs across May, June, and July—most notably the Jabulani RED club, which marks the brand’s full exit from Soweto. Meanwhile, UK investors in the defunct Mirror Trading International crypto scam celebrated a brief win as a UK court struck out the liquidators’ claims due to procedural missteps by their legal firm, Farrer & Co—also known for representing the British royal family.
European Market Commentary
European markets slumped on Tuesday as the Iran-Israel conflict weighed on sentiment, dragging the STOXX 600 index down 0.8% to a near one-month low. In Germany, investor confidence rose strongly, with the ZEW economic sentiment index jumping to 47.5 in June from 25.2 in May, boosted by hopes for stronger global demand and domestic policy support. The German government recently approved a €46 billion tax relief package and a €500 billion infrastructure fund aimed at revitalising the economy.
U.S. Market Commentary
U.S. equities closed lower for a second day as Middle East tensions remained elevated and investors turned cautious ahead of a key Federal Reserve rate decision. The CBOE Volatility Index climbed to 21.6, its highest in nearly a month. Weaker-than-expected retail sales data and flat industrial output added to the cautious tone. Meanwhile, the White House announced President Trump will extend the deadline for ByteDance to divest TikTok’s U.S. operations by 90 days, keeping the app online despite congressional pressure.
Asia Market Commentary
Asian markets were mixed on Wednesday, as investors weighed the impact of geopolitical stress and weak macro data. Japan’s exports fell 1.7% year-on-year in May, the steepest decline since September 2024, with semiconductor and machinery shipments under pressure. Imports dropped 7.7%, underscoring sluggish domestic demand. Business sentiment among Japanese manufacturers edged down for the second straight month, with cautious views on both global trade and the yen’s volatility.
Currency Market Commentary
The rand weakened slightly on Tuesday ahead of key local data, with broader risk sentiment still fragile. The dollar remained firm on safe-haven demand, while sterling slipped ahead of Wednesday’s UK inflation print and Thursday’s Bank of England decision.
Commodity Market Commentary
Oil prices firmed on Wednesday as concerns of escalating conflict between Iran and Israel reignited supply disruption fears across the Middle East. Analysts warned that any further military escalation could strain global shipping lanes and prompt OPEC+ to reconsider output policy. In metals, gold advanced as investors sought safe-haven assets, while silver hit its highest level since 2011. Platinum and palladium also gained, supported by renewed demand optimism following positive European auto data.
PowerFleet Inc. (PWR) -0.07%
PowerFleet delivered strong unaudited FY25 results, reflecting its successful evolution into a scalable global AIoT SaaS provider. Revenue rose 26% to $362.5 million, with approximately 75% derived from high-margin recurring SaaS income. Adjusted EBITDA surged 65% to $71 million, benefiting from acquisition synergies and operational efficiency. The subscriber base expanded fourfold to 2.8 million, and the customer base reached 48,000, including over half of the Fortune 500. Notable organic growth came from AI video solutions (+20%) and in-warehouse safety platforms (+17%), while international revenue grew 13%. The Unity platform, now bolstered by a fourfold increase in engineering capacity, was named the global category leader by ABI Research, positioning Powerfleet for strong margin expansion and accelerated growth in FY26.
Vukile Property Fund Limited (VKE) +2.54%
Vukile posted a solid FY25 performance, reflecting disciplined strategy execution across both South African and Iberian assets. In SA, like-for-like retail net operating income rose 6.4%, trading densities improved 5.2%, and vacancies declined to 1.7%, with 27% of electricity needs now met by solar. In Iberia, portfolio occupancy held at 98.4%, rental reversions reached 17.3%, and NOI grew 6.4%. The group maintained robust liquidity of R4.6 billion, a healthy LTV of 40.95%, and improved credit outlooks. Strategic growth was supported by EUR600 million in retail centre acquisitions across Spain and Portugal. A final dividend of 76.5 cents was declared, up 6% year-on-year, underscoring the group’s disciplined capital management and growth trajectory.
Stor-Age Property REIT Limited (SSS) -3.59%
Stor-Age reported strong FY25 results, with distributable income per share up 4.1% to 123.01 cents and a final dividend of 53.56 cents declared. Rental income and net property operating income rose by 8.3% and 8.0% respectively, driven by robust same-store growth (SA rental income +10.2%; UK +6.5%). Group occupancy expanded by 16,000m², closing at 91.8%. Key highlights included the acquisition of Extra Attic in SA, completion of three new JV properties, and the launch of the £25 million Acton facility in London. Stor-Age entered a third-party management agreement with Hines and is collaborating on five UK developments. With a growing portfolio of 108 properties valued at R18.5 billion and a pipeline exceeding 700,000m², the group remains well-positioned for continued expansion.
General Mills Inc. (GIS) -0.84%
General Mills announced it will eliminate artificial colors from its entire U.S. retail product range by the end of 2027, with synthetic dyes removed from all cereals and foods served in K-12 schools by summer 2026. This change affects only a small part of its school portfolio, as most offerings there are already free of certified colors, and 85% of its U.S. retail products are without artificial colors. The move aligns with recent calls by Health Secretary Robert F. Kennedy Jr. to phase out synthetic food dyes in the U.S. to combat chronic health issues. Similarly, Kraft Heinz has committed to halting the launch of products with artificial colors in the U.S. immediately, targeting full elimination from existing products by the end of 2027.
Coinbase Global Inc. (COIN) -2.95%
Coinbase is seeking approval from the U.S. Securities and Exchange Commission to offer "tokenized equities" on its platform, aiming to enable stock trading via blockchain technology. This initiative, described as a “huge priority” by Coinbase’s chief legal officer Paul Grewal, would position the crypto exchange as a direct competitor to traditional retail brokerages like Robinhood and Charles Schwab, potentially opening a significant new business segment. Tokenized equities convert company shares into digital tokens representing ownership, which proponents argue could lower trading costs, enable faster settlements, and allow 24/7 trading. However, critics highlight challenges such as limited secondary-market liquidity and the absence of global regulatory standards, as noted by a recent World Economic Forum report. While tokenized equities are not yet traded in the U.S., other firms, including rival exchange Kraken, have begun offering such tokens in select international markets.
Caris Life Sciences Inc. (CAI) 0.00%
Caris Life Sciences raised $494.1 million in its Nasdaq initial public offering, selling approximately 23.5 million shares at $21 each, exceeding its raised price range of $19 to $20. The Texas-based company specialises in AI-driven precision medicine, focusing on cancer diagnosis through tumour profiling and blood-based diagnostics. Founded in 2008 by CEO David Halbert, Caris primarily generates revenue from tissue-based molecular profiling, which supports personalised cancer treatment decisions. The firm is set to begin trading on Nasdaq under the ticker symbol "CAI."
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