W. R. Berkley delivers strong Q3 profit on higher investment income and solid underwriting

South Africa

South Africa’s Top 40 index rose 0.57% to 104,022.9 points, while the All Share index gained 0.53% to 111,325.7 points. Investors await September CPI data, expected to rise to 3.5% from 3.3%, as a gauge of economic health. Political debate intensifies over race-based employment laws, with the Democratic Alliance proposing their removal amid ongoing inequality discussions. Tensions between the DA and ruling African National Congress are heightened by U.S. President Donald Trump’s commentary. Domestic policy and inflation data remain key focus points for market participants.

European Union

European shares rose, with the STOXX 600 rebounding from Friday’s 1% decline for its largest one-day gain in nearly three weeks. Industrial and defence stocks led the advance, recovering from prior volatility linked to the Ukraine summit. France’s CAC 40 climbed 0.4% despite an S&P downgrade citing political risks. German tax revenues rose 2.6% year-on-year in September, yet the economy contracted for a second consecutive year in 2024, with 2025 growth projected at only 0.2%. Investors were reassured as U.S. banking and trade concerns eased.

United States

U.S. stocks surged, led by financial and technology sectors, as Q3 earnings revived risk appetite. The Russell 2000 outperformed, rising 2%, amid strong results from Tesla, Netflix, IBM, Intel, GM, and Ford. Anticipated regional bank results follow last week’s credit fears. Analysts now forecast 9.3% S&P 500 Q3 earnings growth, up from 8.8%. White House signals suggest the federal shutdown may end this week. Trade optimism rose as President Trump proposed easing tariffs if China resumes agricultural purchases. Markets remain sensitive to inflation and trade developments.

Asia

Asian equities climbed as trade optimism between the U.S. and China improved risk sentiment. The Nikkei reached a record high ahead of Japan’s parliamentary vote expected to confirm Sanae Takaichi as prime minister. MSCI’s Asia-Pacific index rose 0.94%, with China and Hong Kong shares advancing modestly. Australian equities surged on rare earths and critical minerals following a U.S.-Australia supply deal. Takaichi’s anticipated pro-stimulus stance is expected to support equities while weighing on the yen and bonds. Investor focus remains on the U.S.-China trade dialogue and Japan’s policy trajectory.

Commodities

Gold edged lower as investors booked profits after a recent high amid Fed rate cut expectations. Oil prices fell due to oversupply concerns and potential demand risks from U.S.-China trade tensions. U.S. crude inventories likely rose, while disruptions affected Russian and Kazakh production. India’s continued purchases of discounted Russian oil face U.S. tariff threats. The IEA forecasts a global oil surplus of nearly 4 million barrels per day in 2026 amid rising output and subdued demand. Market sentiment reflects geopolitical and supply-demand uncertainties.

Currencies

The South African rand strengthened ahead of CPI data and potential removal from the FATF grey list. Sterling fell against the euro and U.S. dollar on weak UK economic sentiment and expected lower services inflation. The dollar gained versus the yen amid political developments in Japan and the euro area, while U.S. credit concerns lingered. The yen weakened as Sanae Takaichi is poised to become Japan’s first female prime minister. Currency movements are shaped by domestic economic data, geopolitical developments, and central bank expectations.

KAL Group Limited (KAL) +4.79%

KAL Group reported resilient operational growth for FY2025, supported by an improved second-half performance across all divisions. Trading profit rose 4.1% in Retail, 8.1% in Agri, and 4.9% in Fuel, reflecting stronger momentum in H2. The Agri segment benefited from favourable farming conditions, high export volumes, and improved cashflow, while Retail saw margin expansion and network growth with 15 new touchpoints. Fuel volumes rose 0.8% year-on-year, aided by new site additions. With debt at a 15-year low and disciplined cost management, RHEPS is expected to increase by 7–13% year-on-year.

Sirius Real Estate Limited (SRE) -0.56%

Sirius Real Estate has notarised the €43.7 million acquisition of a defence-anchored business park in Feldkirchen, near Munich. The 27,180 sqm site is 94% occupied with a weighted average lease term of 7.8 years, generating €3.4 million in annualised rent and offering a 7.8% EPRA Net Initial Yield. Excelitas, a global photonics leader, anchors 72% of the park. The purchase enhances operational synergies with Sirius’ nearby Grasbrunn asset and supports its strategic focus on defence-linked properties, bringing 2025 acquisitions to approximately €340 million across Germany and the U.K.

Spear REIT Limited (SEA) +1.55%

Spear REIT delivered a solid interim performance for HY2026, with distributable income per share rising 5.2% to 43.78 cents and total distributable income increasing 55.8% to R173.2 million. Revenue, excluding smoothing, advanced 25.7% to R385.9 million, driven by strong industrial and commercial sector contributions. The loan-to-value ratio improved sharply to 13.85%, reflecting prudent balance sheet management. Headline earnings per share climbed 11.9% to 43.33 cents, while the payout ratio remained stable at 95%. Portfolio occupancy was healthy, with overall vacancy at 4.97% and a yield of 8.23%.

Balwin Properties Limited (BWN) 0.00%

Balwin Properties anticipates strong interim results for the six months ended 31 August 2025, with EPS expected to increase 25–30% to between 20.43 and 21.24 cents and HEPS rising 25–30% to 20.33–21.14 cents, reflecting robust operational performance. The trading statement signals material growth relative to the prior corresponding period, underpinned by resilient demand in Balwin’s residential property segments. The group will release its audited results on 28 October 2025, accompanied by a webcast briefing. These metrics position Balwin as a compelling growth-focused property play in the South African real estate market.

W. R. Berkley Corporation (WRB) -0.77%
W. R. Berkley posted a strong Q3 performance, with net profit rising to $511 million, or $1.28 per share, up from $365.6 million, driven by robust investment income and steady underwriting results. Net written premiums increased 5.5% to $3.23 billion, supported by resilient consumer and commercial demand despite higher borrowing costs. Investment income grew 8.5% to $351.2 million, primarily from the domestic fixed maturity portfolio. Catastrophe losses fell 25% to $78.5 million, while the combined ratio remained stable at 90.9%, reflecting disciplined risk management and profitable underwriting in a market increasingly affected by natural disasters.

Steel Dynamics Inc. (STLD) +2.47%
Steel Dynamics exceeded Q3 expectations, reporting adjusted EPS of $2.74 versus the $2.64 consensus and revenue of $4.83 billion, up 11.2% year-on-year. Profitability benefited from lower scrap raw material costs, which outpaced steel pricing at its electric-arc furnace mills. CEO Mark Millett highlighted anticipated demand growth across platforms, including aluminum flat-rolled products, and cited reduced unfairly traded imports as a key operational tailwind. While some flat-rolled steel customers exhibited order hesitancy due to domestic trade actions, the company expects broader market dynamics to support performance in 2026, reinforcing Steel Dynamics’ strong positioning in the U.S. steel sector.

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