Eli Lilly becomes first pharma company to reach $1tn market cap as obesity drug boom shifts focus to oral Orforglipron

South Africa

South African equities retreated sharply on Friday, with the Top 40 index falling 2.09% to 102,167.56 and the All Share index down 2.02% at 109,641.33. Cell C priced its long-awaited JSE listing at R26.50, below the indicative range, as majority shareholder Blu Label seeks renewed market traction. Walmart opened its first South African store to heavy footfall, leveraging its “Everyday Low Prices” strategy and unique U.S. product offering. Treasury signalled strong prospective demand for a planned $2.7bn Eurobond, while diplomatic tensions rose as G20 leaders adopted a climate declaration without U.S. input, drawing criticism from Washington.

Europe

European equities ended the week lower, with the STOXX 600 down 0.3% and logging its steepest weekly drop since July as stretched tech valuations and optimism around potential Russia-Ukraine peace progress weighed on sentiment. Investors monitored a U.S.-drafted plan involving Ukrainian territorial concessions, which Kyiv rejected. UK data weakened, with retail sales sliding and PMIs softening, though the FTSE 100 edged 0.1% higher. In France, services activity returned to expansion for the first time in 15 months, offsetting a deeper contraction in manufacturing and signalling stabilisation in broader business conditions.

United States

U.S. equities rallied Friday on rising expectations of a December Fed rate cut, with market-implied probabilities jumping to 72% after comments from New York Fed President John Williams. Despite the rebound, all major indices posted weekly losses as concerns over stretched tech valuations persisted, with the Nasdaq down 7% from its October peak. Policy divergence within the Fed added volatility as some officials warned against easing too soon. Market swings were amplified by uncertainty around AI-related capital spending and investor positioning ahead of a potentially pivotal December FOMC meeting.

Asia

Asia-Pacific markets opened the week higher after Fed President John Williams signalled room for a third U.S. rate cut this year. Taiwan lifted all Fukushima-era restrictions on Japanese food imports, prompting a diplomatic backlash from China and shifting regional tourism flows. Chinese cruise operators are redirecting itineraries toward South Korea amid rising Japan–China tensions. In corporate news, Australia’s Qube Holdings surged over 20% after receiving a AU$11.6bn takeover proposal from Macquarie Asset Management, while Macquarie Group shares dipped. Taiwan President Lai publicly endorsed Japanese food safety by sharing images of himself eating sushi.

Currencies

The rand weakened on Friday as global investors reduced exposure to risk assets following a mixed U.S. jobs report that clouded expectations for near-term Fed easing. The dollar held firm on Monday, while yen volatility persisted amid heightened speculation of official intervention. Japan’s currency drifted to ¥156.71/$, pressured by ultra-low rates and looser fiscal policy, but rebounded recently after the finance minister issued sharp warnings. Traders see potential intervention between ¥158–162/$, with thin liquidity later in the week providing a possible window for action.

Commodities

Oil prices extended losses Monday, pressured by progress in Russia–Ukraine peace talks and a stronger dollar. Brent and WTI both fell around 3% last week, hitting their lowest levels since late October amid concerns that a peace agreement could lift sanctions and release significant Russian supply back into global markets. Negotiators have discussed a plan requiring Ukraine to cede territory and halt NATO ambitions, though European leaders are pushing for revisions. Sentiment was further dampened by uncertainty surrounding U.S. rate cuts, reducing risk appetite across commodity markets.

SPAR Group Limited (SPP) -4.35%

The SPAR Group expects materially lower FY2025 earnings, with EPS down 40–50% and HEPS 7.5–12.5%, largely due to once-off impairments and Poland exit-related financing and tax costs. Despite these charges, operational trends improved in the second half, with stronger constant-currency revenue growth, firmer gross margins and better Southern Africa operating profit. Group net debt fell 40% to R5.4bn following strong cash generation and the sale of SPAR Switzerland, while gearing and leverage improved. Proactive asset write-downs reduced equity by R5.2bn, but recent disposals have strengthened financial flexibility and support plans to resume dividends and share buybacks.

Hammerson plc (HMN) +5.57%

Hammerson plc delivered a strong update, underpinned by the £104.5m acquisition of the remaining 50% of The Oracle, Reading, which is expected to be 5% accretive to FY26 EPRA earnings. The asset is showing clear momentum, with occupancy rising to 97%, GRI up 9% and NRI up 20%. Group-wide trading remains robust, with 261 leases signed at significant uplifts and UK performance a standout. FY25 guidance was raised, including gross rental income growth of 19% and EPRA earnings of at least £102m. Balance-sheet strength improved following proactive refinancing, with FY25 debt costs of 2.4% and LTV around 37%.

Sirius Real Estate Limited (SRE) +0.32%

Sirius Real Estate has completed the €43.7m acquisition of a high-quality business park in Feldkirchen, near Munich, enhancing its German industrial platform. The asset delivers €3.4m in annualised rent, is 94% occupied and offers a 7.8% EPRA Net Initial Yield, with upside from shorter leases. Excelitas anchors 72% of the space on a 10-year lease, supported by tenants including OVOL Papier and Bosch. The deal lifts Sirius’s rent roll additions to €23.4m year-to-date and positions the portfolio to benefit from increased German defence expenditure, reinforcing long-term growth potential across its €2.8bn industrial footprint.

Cilo Cybin Holdings Limited (CCC) -7.10%

Cilo Cybin delivered solid top-line growth for the six months to 30 September 2025, with revenue rising to R18.6m on continued demand for pharmaceutical and cannabis-derived products. Results were dominated by a non-cash IFRS 2 listing expense of R217.5m arising from the reverse acquisition of CC Pharmaceutical, driving a R212.1m after-tax loss. Excluding this once-off charge, the Group would have generated a R5m profit, although regulatory approval delays and acquisition-related costs weighed on margins. The Group strengthened its balance sheet significantly, ending with R58.3m in cash and higher equity of R100.2m, supported by the issue of new shares to complete the acquisition.

Eli Lilly and Company (LLY) +1.57%

Eli Lilly became the first pharmaceutical company to reach a $1 trillion market capitalisation, propelled by explosive demand for its obesity and diabetes drugs Mounjaro and Zepbound. These products now generate over $10bn per quarter and have overtaken Merck’s Keytruda as the world’s best-selling medicine. Lilly has outpaced Novo Nordisk, benefiting from stronger clinical efficacy, faster manufacturing scale-up and fewer supply constraints. Shares have gained over 75% since late 2023, reaching a peak valuation of ~52x forward earnings and now trading at ~33x. The re-rating reflects sustained investor conviction in its long-term leadership of a weight loss market projected to reach ~150 billion dollars by 2030. Investor attention now pivots to the next potential catalyst, the oral obesity candidate orforglipron.

BHP Group Limited (BHP) -3.24%

BHP has abandoned renewed talks to acquire Anglo American, stepping back from a potential deal that could have reinforced its leadership in copper ahead of key shareholder votes on Anglo’s planned $60bn merger with Teck Resources. While BHP maintained the transaction offered strong strategic rationale, management reiterated confidence in its organic growth pipeline after focusing on smaller-value projects in Argentina and elsewhere. The withdrawal follows Anglo’s improved share performance and the company’s ongoing restructuring, while UK rules now prevent BHP from making another bid for six months. Investors remain focused on BHP’s ability to sustain copper dominance amid accelerating energy-transition demand.

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