TikTok Restores Partial Services After Trump's Promise to Revive App in the U.S.

LOCAL MARKET COMMENTARY

The JSE Top 40 climbed 1.3% on Friday, closing at 76,232 points, while the All Share index gained 1.25% to end at 84,700. The Department of Home Affairs has unveiled plans to digitize and enhance passport security, boosting South Africa’s global standing. The Henley Passport Index now ranks the country 48th, its best position in over a decade. Meanwhile, Caxton and Capital Newspapers are escalating their legal challenge against Media24’s print publication closures to the Constitutional Court.

EUROPEAN MARKET COMMENTARY

European equities closed higher on Friday, with the STOXX 600 achieving its fourth consecutive weekly gain, driven by declining bond yields and optimistic economic indicators. However, UK retail sales dropped 0.3% in December, raising concerns about potential Q4 economic contraction. Data from the ECB showed a narrower eurozone current account surplus in November, due to reduced services income and lower primary income figures, signalling some underlying challenges for the bloc.

US MARKET COMMENTARY

US markets recorded their first weekly advance of the year, fuelled by tech and banking sector strength. Tesla and Nvidia surged over 3%, while Goldman Sachs and Citigroup posted weekly gains of around 12%. Strong Q4 earnings from major banks helped lift investor sentiment as markets turned their attention to this week’s inauguration and potential policy shifts from the incoming administration, which could influence future economic momentum.

ASIA MARKET COMMENTARY

Asia-Pacific markets advanced this morning ahead of the US presidential inauguration. China’s central bank kept its benchmark lending rates unchanged, focusing on managing yuan depreciation concerns. South Korea revised its 2025 GDP growth forecast down to 1.6%-1.7%, citing reduced domestic demand and lingering uncertainty following political instability. The region remains cautious but optimistic about global economic developments.

CURRENCY MARKET COMMENTARY

The rand strengthened on Friday following a volatile week, reflecting improved sentiment ahead of US political developments. The pound dropped against the dollar and euro after weak UK retail sales data signalled further economic pressures. The dollar held firm, supported by cautious optimism in Asian markets as traders anticipated early policy signals from the new US administration and a possible rate hike from the Bank of Japan later this week.

COMMODITY MARKET COMMENTARY

Gold rebounded from early losses as markets awaited insights from the incoming US administration’s policy agenda, which could influence the Federal Reserve’s interest rate path. Oil prices steadied, extending their weekly gains as traders weighed the impact of recent US sanctions on Russian oil producers against expectations of policy adjustments that may ease energy sector restrictions under the new administration.

Alphamin Resources Corp (APH) +0.77%

Alphamin produced 5,237 tonnes of contained tin in Q4 2024, a 7% increase from the previous quarter, meeting its target of processing 900,000 tonnes annually at a 3% grade. Plant recoveries surpassed expectations, reaching 75% versus the 73% target. Annual production totaled 17,324 tonnes, a 38% year-on-year increase, supported by the Mpama South expansion completed in Q2. However, Q4 tin sales dropped 11% to 4,942 tonnes due to high rainfall impacting road access, with the backlog expected to clear by January 2025. Q4 all-in sustaining costs (AISC) per tonne sold fell 4% quarter-on-quarter to $15,106, aided by a 60% reduction in marketing fees under an extended offtake agreement with Gerald Metals. FY2024 EBITDA is estimated at $274 million, a 102% rise year-on-year, driven by higher production, increased sales volumes, and a 17% increase in the average tin price to $30,345/t. Despite lower sales and a 4% decline in tin prices during Q4, the company anticipates Q4 EBITDA of $76 million. For 2025, Alphamin targets 20,000 tonnes of tin production, benefiting from a full year of output from Mpama South. Exploration continues at Mpama North and South to expand resources and identify new deposits. Early drilling at Mpama South suggests potential down-dip extensions, while Mpama North has revealed tin mineralization and chlorite alteration, indicating possible strike and dip extensions. Detailed FY2024 financial results will be published by March 14, 2025.

Merafe Resources (MRF) +1.99%

Merafe Resources announced Q4 2024 ferrochrome production of 70kt through the Glencore Merafe Chrome Venture, bringing total annual production to 301kt for the year ending December 31, 2024. This represents a marginal 0.3% increase from 300kt in 2023, demonstrating consistent operational performance. Q4 production saw a slight decline compared to 75kt in Q4 2023, but the overall annual performance underscores the venture's stability.

Costco Wholesale Corporation (COST) +2.55%

The Teamsters union announced on Sunday that its members at Costco Wholesale voted overwhelmingly in favour of a nationwide strike, with 85% of the 18,000 workers supporting the move. This comes as final contract negotiations are set to take place before the January 31 deadline. The union cited Costco’s "failure to bargain constructively" as the reason for the vote, adding that the master agreement between the parties expires on January 31. Negotiations are scheduled to resume on January 20. Costco has not yet commented on the situation.

Bytedance

TikTok began restoring services on Sunday following comments by President-elect Donald Trump, who pledged to revive the app’s access in the U.S. upon taking office on Monday. Trump stated, “We have no choice. We have to save it,” and suggested that a joint venture would ensure the app’s continued operation for its 170 million U.S. users. TikTok confirmed the restoration of some services, although the app remains unavailable for download on U.S. app stores. Limited functionality was accessible to some users by Sunday evening.

Starbucks Corporation (SBUX) +0.74%

Starbucks CEO Brian Niccol announced plans to cut jobs as part of broader turnaround efforts, with details to be released by early March. In-store teams and store-hour investments will not be impacted. Niccol, four months into his tenure, outlined measures to combat competition and weakening demand in key markets like the U.S. and China. Starbucks also plans to revamp its U.S. locations, focusing on customer experience enhancements such as improved seating, ceramic mugs, and reduced wait times. The company suspended its fiscal 2025 forecast last October as part of its strategic overhaul.

Sberbank

Sberbank, Russia’s largest lender, reported record annual profits of 1.56 trillion roubles ($15.22 billion) in 2024, driven by robust corporate borrowing and elevated interest rates, which closed the year at 21%. This marked a 4.6% year-on-year profit increase under Russian accounting standards, with return on equity reaching 23.4%. CEO German Gref noted that December saw a 0.1% decline in retail and corporate lending portfolios, the first drop since 2022, as tight monetary policy and sector regulations applied downward pressure on lending activity.

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