In today's Taking Stock, Palo Alto Networks issued an upbeat fiscal 2026 forecast, projecting revenue of $10.48–$10.53 billion and adjusted EPS of $3.75–$3.85, both ahead of consensus.
South Africa
The Top 40 index lost 0.87% yesterday to close the day at 93,676.2 points, while the All Share index shed 0.79% to reach 101,142.6 points. MTN Group is under investigation by a U.S. grand jury over historical dealings in Afghanistan and its partial ownership of an Iranian carrier, overshadowing interim results that showed a return to profit. A modest downgrade to its domestic revenue outlook triggered a 9% share price decline. Separately, Thungela Resources reported an 80% profit drop, citing depressed thermal coal prices and macroeconomic headwinds. Meanwhile, South African produce exports to the U.S. rose 26% in Q2, though future shipments may be curtailed by punitive U.S. tariffs, now under negotiation.
Europe
European equities traded sideways ahead of high-level diplomacy concerning Ukraine, with the STOXX 600 edging up 0.1%. In Germany, building permits rose 7.9% year-on-year in June, signalling tentative stabilisation in the property sector. However, the rebound follows a period of severe contraction. Novo Nordisk shares advanced after U.S. approval to expand use of its weight-loss drug Wegovy to treat liver disease, offering relief following recent market volatility. Meanwhile, President Trump pledged U.S. security guarantees to Ukraine during a high-stakes summit with President Zelenskiy and European leaders.
United States
U.S. equities ended flat on Monday as investors awaited earnings from major retailers and guidance from the Fed’s upcoming Jackson Hole symposium. Walmart, Home Depot, and Target will be closely watched for insights on consumer sentiment amid inflationary pressures and policy uncertainty. Markets are also looking for clarity from Fed Chair Powell’s remarks later this week. Despite geopolitical tensions, including inconclusive talks between Presidents Trump, Zelenskiy, and Putin, Wall Street remains resilient, with the Dow recently touching a record high on optimism surrounding rate cut expectations.
Asia
Asian markets softened ahead of the Jackson Hole symposium, despite diplomatic signals of possible progress in Ukraine peace efforts. Japan’s Nikkei hit a new high, supported by a weaker yen boosting exporters. Bank Indonesia is expected to pause rate cuts to assess inflation risks, with Q2 GDP growth at 5.1% and July inflation nearing the central bank’s target midpoint. Meanwhile, Shein is reportedly considering relocating its headquarters back to China to advance its planned Hong Kong IPO, a move still under legal and regulatory review.
Currencies
The rand edged lower as markets focus on upcoming South African inflation data and broader geopolitical developments that could influence risk sentiment. The U.S. dollar firmed, with the dollar index climbing 0.31%, as traders digested President Trump’s renewed diplomatic engagement on Ukraine. The euro held steady, trading within its recent range at $1.1667. Attention now shifts to Fed Chair Powell’s speech at Jackson Hole, which may offer critical insight into the direction of U.S. interest rates and their implications for global FX markets.
Commodities
Gold traded flat as investors awaited Fed signals from Jackson Hole, while oil eased on speculation that potential U.S.-Ukraine-Russia talks could reshape sanctions and crude flows. Risks persisted, with Druzhba pipeline supplies to Hungary and Slovakia disrupted after Ukrainian strikes on Russian assets. Meanwhile, South Africa’s agricultural exports to the U.S. surged 26% y/y to $161m in Q2, led by citrus, wine, juices, and nuts. Overall agricultural exports rose 10% to $3.71bn, underscoring strong harvests and the U.S.’s strategic importance for local producers.
MTN Group (MTN) -8.41%
MTN delivered a strong set of results for H1 2025, underpinned by solid commercial execution, disciplined capital allocation, and improved macro conditions. Group service revenue grew 23.2% (22.4% in constant currency), led by MTN Nigeria and MTN Ghana. Fintech revenues surged 37.3%, while transaction values rose 45.4%. EBITDA rose 60.6%, with margin expanding to 42.7%. Basic EPS rebounded to 539 cents from a 409-cent loss, and HEPS grew 352% to 645 cents. Despite the positive earnings, no interim dividend was declared. Subscriber growth continued, with active data users rising 10.3%. The Group upgraded its medium-term revenue growth guidance to “at least high-teens.”
Absa Group (ABG) -0.82%
Absa delivered a solid performance for the six months to 30 June 2025, reflecting its strong pan-African footprint and strategic focus on inclusive financial growth. Total income rose 5.2% to R56.5 billion, while headline earnings per share increased 16.5% to 1,431.6 cents. Return on equity improved to 14.8%, and the dividend per share was raised 14.6% to 785 cents. Net asset value per share rose 11.3% to 20,048 cents. Although the net interest margin narrowed slightly to 4.58%, Absa’s cost-to-income ratio increased modestly to 53.2%, reflecting continued investment in digital and operational efficiency across its 16-country footprint.
Northam Holdings (NPH) +0.61%
Northam Holdings expects a decline in earnings for the year ended 30 June 2025, despite delivering strong operational results. Group refined metal output rose 5.2% to 937,942 oz 4E, while chrome concentrate production grew 9.0%. Sales revenue increased 6.9% to R32.9 billion, supported by a 5.9% rise in volumes, exceeding 1 million oz 4E sold for the first time. However, mining cost inflation drove unit costs up 8.1% and reduced operating profit by 25.5% to R3.6 billion. Basic and headline EPS are expected to fall by up to 19.8% and 19.4% respectively. Post-year-end, a USD66 million cash inflow was received, strengthening liquidity further.
Aveng Limited (AEG) -18.64%
Aveng reported a challenging set of results for the year ended 30 June 2025, posting a headline loss of A$84.6 million (R975 million) compared to a profit in the prior year. Revenue declined to A$2.6 billion (R31.0 billion), down from A$3.1 billion, with operating losses widening to A$60.4 million. Losses from the J108 and Kidston projects significantly impacted performance. Headline loss per share was A$64.6 cents (744 cents in rand), while basic loss totalled A$92.3 million. Despite the financial setback, work in hand rose to A$3.2 billion, with cash holdings improving to A$267.3 million. Progress continues on the Group’s strategic separation plan.
Palo Alto Networks Inc. (PANW) -0.52%
Palo Alto Networks issued an upbeat fiscal 2026 forecast, projecting revenue of $10.48–$10.53 billion and adjusted EPS of $3.75–$3.85, both ahead of consensus. The company is benefiting from rising demand for AI-driven cybersecurity amid accelerating cloud adoption. Q1 revenue and EPS guidance also beat expectations. Recent product launches, including Cortex Cloud and Prisma AIRS, strengthen its portfolio alongside the planned $25 billion CyberArk acquisition. Founder and CTO Nir Zuk has retired, with Lee Klarich appointed as CTO and board member. Shares rose 5% in after-hours trading, reflecting confidence in the company’s strategic direction and earnings momentum.
Intel Corporation (INTC) -3.66%
Intel secured a $2 billion equity injection from SoftBank, reinforcing market confidence amid its ongoing turnaround. The investment, made at $23 per share via primary issuance, makes SoftBank a top-10 shareholder with a near-2% stake. The deal supports Intel’s repositioning efforts in the AI chip space, after lagging behind industry peers. Reports of potential U.S. government investment following CEO Lip-Bu Tan’s meeting with President Trump add further intrigue. Intel shares rose 5.6% in after-hours trading, despite SoftBank falling over 5%. Intel recorded a $18.8 billion loss in 2024, its first annual loss since 1986, underlining the significance of this capital support.
Ampol Limited (ALD) -1.50%
Ampol reported a 23% year-on-year drop in first-half net profit to A$180.2 million, impacted by weak refinery margins and weather-related disruptions, though results beat consensus forecasts of A$165.6 million. Lytton refinery earnings fell sharply to A$1.1 million, from A$89.5 million, while infrastructure earnings nearly halved. Despite interim earnings pressure, July margins improved to $9.95 per barrel, signalling a stronger H2. The interim dividend was cut to 40 cents from 60 cents. Strategic expansion continued with the A$1.1 billion acquisition of EG Australia. Ampol remains focused on operational recovery and market share growth amid margin volatility and external disruptions.
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