Porsche SE Eyes Defence and Infrastructure Investments, Reaffirms Commitment to Volkswagen and Porsche AG Holdings

Local Market Commentary

The Top 40 index gained 0.28% to 82,541.0 points, while the All Share index rose 0.24% to 89,926.5 points, as investors awaited South Africa’s February producer inflation data for economic insights. Analysts at Absa Group project 2.1% GDP growth in 2025, outpacing the central bank’s 1.7% forecast and marking a significant improvement from 0.7% in 2024, though cooling US relations could weigh on the outlook. Meanwhile, Ford is expanding its investment in the Silverton assembly plant, adding to its R5.2 billion commitment for the Ranger PHEV by funding upgrades to the paint plant and water recycling infrastructure.

European Market Commentary

European shares closed lower on Wednesday, with the STOXX 600 falling 0.7%, marking its fourth decline in five sessions as technology and healthcare stocks weighed on performance. Investor sentiment remained cautious ahead of impending U.S. tariffs, though the index is still set for its best quarter in two years, driven by optimism over Germany’s fiscal stimulus. The region continues to attract investors seeking value outside U.S. markets amid concerns over trade policy-driven economic slowdown. In the UK, Finance Minister Rachel Reeves scaled back planned spending increases to meet fiscal targets, raising the possibility of tax hikes later in the year.

U.S. Market Commentary

Wall Street ended sharply lower on Wednesday, weighed down by losses in Nvidia and Tesla as investors braced for U.S. tariffs on automotive imports. President Trump’s expected announcement of reciprocal tariffs on April 2 has raised concerns over higher prices and production slowdowns, prompting businesses to stockpile inventories. Meanwhile, U.S. durable goods orders unexpectedly rose last month. Barclays revised its S&P 500 target down to 5,900 from 6,600, as the index has lost 3% in 2025, while the Nasdaq is down over 7%. Investors now await the Federal Reserve’s preferred inflation gauge, the PCE index, with Fed official Neel Kashkari warning that tariffs could push inflation higher, potentially justifying rate hikes.

Asia Market Commentary

Asia-Pacific markets traded mixed, mirroring Wall Street’s losses as investors assessed the impact of President Trump’s 25% tariffs on auto imports. China’s industrial profits fell 0.3% year-on-year in the first two months of 2025, marking the third consecutive annual decline and reinforcing calls for policy intervention to support growth. Meanwhile, Hong Kong’s property market remained under pressure, with home prices dropping 0.9% in February—the third straight monthly decline—reaching a near nine-year low amid ongoing economic weakness.

Currency Market Commentary

South Africa’s rand remained stable on Wednesday as investors awaited U.S. President Trump’s plans for reciprocal tariffs, concerned they could lead to an economic slowdown in the U.S. The euro weakened to a three-week low, while the yen held steady against the dollar following Trump’s announcement of a 25% tariff on imported cars and light trucks set to take effect next week. The escalating trade tensions have dampened risk sentiment, with investors worried that the tariffs could slow U.S. growth and reignite inflation, although recent hopes for narrower tariffs have somewhat supported market sentiment.

Commodity Market Commentary

Gold prices rose this morning as U.S. auto tariffs heightened global trade tensions ahead of the April 2 deadline for reciprocal tariffs. Oil prices also edged up, driven by concerns over tighter global supply due to U.S. tariff threats on Venezuelan oil buyers and earlier sanctions on Iranian oil buyers. On Wednesday, oil prices gained around 1% following U.S. government data showing a decline in crude oil and fuel inventories, along with the ongoing threat of tariffs on nations purchasing Venezuelan crude.

Bell Equipment Limited (BEL) -4.46%

Bell Equipment Limited has updated shareholders regarding its earnings for the year ended 31 December 2024, following a previous trading statement on SENS released on 23 December 2024. The company’s earnings per share (EPS) and headline earnings per share (HEPS) are expected to be between 450 cents and 475 cents, reflecting a decrease of 44% to 41% from 799 cents and 798 cents respectively in 2023. The decline is attributed to weaker market conditions. The financial information provided has not yet been audited by the company’s external auditors, with the audited financial results scheduled to be announced on SENS on 28 March 2025.

Metair Investments Limited (MTA) +1.33%

Metair Investments Limited reported a 28% increase in operating profit after capital items to R603 million for the year ended 31 December 2024, despite a 2% decline in revenue to R11.8 billion, attributed to lower South African OEM production. The company’s EBITDA before capital items was R844 million, while cash and cash equivalents rose from R567 million to R808 million. Headline earnings per share from continuing operations decreased by 9 cents to 89 cents. Metair’s strategic diversification was highlighted by the acquisition of AutoZone and the sale of Mutlu Aku in December 2024. Hesto also turned profitable in FY24, and the company maintained its B-BBEE Level 1 status. Debt restructuring was approved, and shareholders are advised to review the full annual report for further details on the results and leadership updates.

Porsche Automobil Holding SE (PAH) -0.85%

Porsche SE, the largest shareholder in Volkswagen Group, is evaluating potential long-term investments in the defence and infrastructure sectors while reaffirming its commitment to its existing holdings in Volkswagen and Porsche AG. The company holds 31.9% of Volkswagen’s equity and 53.3% of its voting rights, along with a 12.5% stake in luxury carmaker Porsche AG. This strategic interest follows Germany’s recent approval of a €500 billion infrastructure fund and increased defence spending, which has driven investor confidence in these sectors. Despite exploring new opportunities, Porsche SE has no plans to divest its shares in Volkswagen or Porsche AG.

BYD Company Limited (1211) +2.36%

BYD aims to double its overseas sales to over 800,000 vehicles in 2025 by expanding in key markets such as Britain, Latin America, and Southeast Asia. To navigate rising tariffs on Chinese-made cars, the company plans to maintain its cost advantage by sourcing key components from China while assembling vehicles locally. With a broader goal of selling 5.5 million units this year, BYD is disrupting the Chinese auto market with competitively priced models, including the sub-$10,000 Seagull hatchback. Additionally, the company plans to expand its intelligent software and semiconductor development team from 5,000 to 8,000 employees.

Jefferies Financial Group (JEF) -2.29%

Jefferies’ first-quarter profit fell short of Wall Street expectations as weaker bond trading and stalled equity deals weighed on performance amid geopolitical uncertainty and shifting U.S. trade policy. Capital markets revenue declined nearly 4% to $698 million, with fixed-income net revenues dropping 18% due to lower volatility and reduced trading volumes. However, the firm saw a 17% rise in advisory revenues and a 54% surge in debt underwriting, driving a 7% improvement in investment banking performance. Jefferies posted earnings of $0.57 per share, missing analysts’ forecast of $0.94 per share.

Do you prefer a full in-depth report you can read offline? Click here to download the full report.