In today's Taking Stock, Home Depot kept its annual forecasts unchanged despite delivering muted quarterly results, while signalling selective price hikes on some imported goods due to higher-than-expected tariffs.
South Africa
The JSE All Share index gained 0.05% on Tuesday to close at 101,196.2, while the Top 40 slipped 0.05% to 93,625.4. Assmang is considering closing its Beeshoek iron ore mine after losing its sole customer, ArcelorMittal South Africa, threatening 688 jobs. Assmang is jointly owned by African Rainbow Minerals and Assore. July inflation data is due Wednesday, with analysts expecting an increase from June’s 3.0%. The figures will provide guidance on the Reserve Bank’s policy stance.
Europe
European shares reached five-month highs as optimism rose following U.S.-Ukraine-European talks. The STOXX 600 added 0.7%, while earnings forecasts weakened slightly, with Q2 profits now expected to grow 4.6%, down from 4.8%. Britain’s ONS delayed July retail sales data to September 5, extending recent statistical disruptions. ECB data showed foreign demand for euro zone debt improved in June, supporting the euro’s safe-haven role as U.S. fiscal uncertainty and political pressure on the Federal Reserve weigh on dollar sentiment.
United States
The Nasdaq and S&P 500 weakened as technology stocks retreated ahead of the Federal Reserve’s Jackson Hole symposium. Nvidia dropped 3.5%, its largest fall in four months. Investors await Chair Jerome Powell’s remarks for signals on future rate cuts. President Donald Trump renewed pressure on the Fed, saying high borrowing costs are hurting the housing sector, and urged steep cuts. Separately, S&P Global reaffirmed the U.S. "AA+" credit rating, citing tariff revenue offsetting the fiscal impact of Trump’s tax and spending bill passed in July.
Asia
China left its benchmark lending rates unchanged for a third month, meeting expectations. Asian markets declined following Wall Street’s sell-off, while the dollar strengthened before Jackson Hole. Hong Kong’s unemployment rose to 3.7%, with job losses in retail, food and property. U.S. Treasury Secretary Scott Bessent accused India of profiteering from cheap Russian oil, now 42% of its imports. New Zealand’s central bank cut rates to 3.0%, a three-year low, and flagged further easing. The New Zealand dollar fell 1.2% to a four-month low.
Currencies
The rand weakened on Tuesday as traders awaited U.S. Fed signals from Jackson Hole and domestic inflation data due Wednesday. Sterling tracked the euro higher, buoyed by optimism over potential peace progress in Ukraine. The dollar traded mixed, with investors awaiting Jerome Powell’s Friday speech, which is expected to provide clarity on September rate cut prospects. Markets are closely watching whether Powell pushes back against easing expectations, given limited new U.S. data releases this week to guide sentiment or trading direction.
Commodities
Gold eased to a three-week low as a stronger dollar and caution ahead of Jackson Hole pressured sentiment. Oil prices rose on renewed supply concerns as uncertainty persists over the Russia-Ukraine conflict. India’s imports of Russian oil slowed in July as discounts narrowed and seasonal demand eased, with further declines likely in coming months. BP reported flooding disrupted operations at its 440,000 bpd Whiting refinery in Indiana, a key U.S. Midwest supplier, potentially curbing crude demand at a time when supply constraints remain in focus.
Harmony Gold Mining Company Limited (HAR) -0.71%
Harmony Gold announced it has cleared the final regulatory hurdle for its landmark acquisition of MAC Copper, after receiving approval from Australia’s Foreign Investment Review Board. This follows earlier consent from the South African Reserve Bank. MAC Copper owns the CSA mine in New South Wales, which produced around 41kt of copper in 2024, and the acquisition forms part of Harmony’s strategy to expand into gold-copper assets. CEO Beyers Nel said the deal strengthens Harmony’s portfolio and accelerates its transformation into a global producer. With regulatory approvals secured, the scheme remains subject to shareholder votes on 29 August, court sanctioning, and other customary conditions, all outlined in the Scheme Circular. Further updates will follow as the transaction progresses.
Anglo American Plc (AGL) +0.60%
Anglo American responded to Peabody Energy’s decision to terminate its agreement to acquire the group’s Australian steelmaking coal business, stating it does not accept that the March 2025 incident at Moranbah North constitutes a Material Adverse Change. CEO Duncan Wanblad emphasised there was no damage to the mine or equipment, and that substantial progress has been made towards a safe restart, with employees recently approving a key risk assessment. Anglo American said it had offered amended terms and technical solutions to avoid a dispute, but will now pursue arbitration for damages, while reserving its rights under the agreements. The company highlighted ongoing inbound interest in its high-quality steelmaking coal assets and remains confident of securing an alternative transaction.
Dipula Properties Limited (DIB) -0.52%
Dipula announced the acquisition of Protea Gardens Mall in Soweto for R478.1 million through its subsidiary Luxanio Trading 181. The 24,141m² community shopping centre is anchored by Shoprite, Boxer and Cashbuild, with over 70% of space let to national tenants, providing strong income visibility and long-term growth potential. The deal supports Dipula’s strategy of expanding into township and convenience retail assets. The transaction is subject to board, funding and Competition Authority approvals, and payment will be in cash, with flexibility to use equity or vendor consideration placements. Forecast distributable profit is R26.6 million for nine months to August 2026 and R39.9 million for FY27, assuming a 40% loan-to-value structure. No dividend or fair value adjustments were included.
NEPI Rockcastle N.V (NRP) +0.60%
NEPI Rockcastle reported strong interim results for H1 2025, with net operating income up 12.1% as portfolio quality and active asset management lifted investment property values above €8 billion for the first time. The vacancy rate remains exceptionally low at 1.6%, supported by high demand for premium retail assets. Distributable earnings per share rose 3.1% year on year to 31.05 euro cents, with the board declaring a dividend of 27.95 euro cents per share, representing a 90% payout ratio. The balance sheet remains robust, with loan-to-value at 32.1%. NEPI continues to invest in developments, including renewable energy, which is expected to provide additional long-term growth. Guidance for FY25 DEPS has been revised upwards to 2.5–3% growth versus 2024.
Home Depot Inc. (HD) +3.17%
Home Depot kept its annual forecasts unchanged despite delivering muted quarterly results, while signalling selective price hikes on some imported goods due to higher-than-expected tariffs. The Atlanta-based retailer, which sources over half its products domestically, said demand remains resilient, with customers focused on smaller maintenance work and professional contractors continuing to drive growth. Investments in supply chain and acquisitions such as SRS Distribution and GMS have strengthened its offering to high-value professionals. U.S. comparable sales rose 1.4% in the second quarter, aided by warm July weather, marking a third consecutive quarter of growth. Net sales reached $45.28 billion, slightly below forecasts, while adjusted profit of $4.68 per share missed expectations of $4.71. Full-year targets remain intact.
Fletcher Building Limited (FBU) -2.23%
Fletcher Building reported weaker full-year results, hit by soft demand across New Zealand and Australia, and warned of subdued conditions ahead as the housing market and labour environment remain pressured. Underlying post-tax earnings fell to NZ$152 million, narrowly missing forecasts, compared with NZ$183 million last year. The Materials and Distribution division, which supplies cement, concrete, plumbing, and building products, recorded lower demand, driving operating earnings down to NZ$314 million from NZ$448 million. On a statutory basis, losses widened to NZ$419 million due to one-off charges of NZ$702 million, versus a NZ$227 million loss a year earlier. The company, undergoing major internal change, again withheld a dividend, having last paid shareholders in fiscal 2023.
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