Australia Enforces Social Media Ban for Under-16s

LOCAL MARKET COMMENTARY

The Top 40 index dropped 0.48% yesterday to close out the session at 76,338 points, while the All Share traded 0.37% lower to 84,787 points. Producer inflation fell to -0.7% year-on-year in October from 1.0% in September. The South African Reserve Bank's Financial Stability Review highlighted an improved financial outlook due to successful elections, reduced power cuts, and expectations of lower interest rates. Attention now shifts to today's economic data releases, including money supply, trade, and budget balance figures.

EUROPEAN MARKET COMMENTARY

European markets closed higher on Thursday, rebounding from the previous session’s downturn as investors monitored eurozone inflation data, with German prices remaining flat and Spanish inflation rising to 2.4%. Meanwhile, Ukraine enacted its first wartime tax increases, raising the personal income war tax from 1.5% to 5% and extending it to entrepreneurs and small businesses starting Dec. 1, to bolster defence funding as the conflict with Russia enters its 34th month.

US MARKET COMMENTARY

US markets were closed on Thursday due to a public holiday.

ASIA MARKET COMMENTARY

Asia-Pacific markets mostly declined this morning as investors evaluated Tokyo's November inflation data and South Korea's industrial production figures. Tokyo's headline inflation rebounded to 2.6% from October's 1.8%, while core inflation rose to 2.2%, slightly above expectations. These figures, seen as a precursor to nationwide trends, raised the likelihood of a December rate hike by the Bank of Japan to 60%, driven by economic growth and yen concerns. Meanwhile, South Korea's industrial production increased by 2.3% year-on-year in October, recovering from a 1.3% decline in September.

CURRENCY MARKET COMMENTARY

The South African rand gained strength on Thursday following the release of October's producer inflation data and the South African Reserve Bank's November Financial Stability Review, signalling positive market sentiment. The dollar weakened against most major currencies during thin trading on the U.S. Thanksgiving holiday, while the British pound reached its highest level since November 20.

COMMODITY MARKET COMMENTARY

Gold prices climbed on Thursday, driven by increased safe-haven demand amid geopolitical tensions and trade war concerns, while U.S. markets remained closed for Thanksgiving. This morning, oil prices showed mixed movement as potential supply risks resurfaced due to accusations of ceasefire violations between Israel and Hezbollah, coupled with uncertainty around OPEC+ output policy following a delayed meeting.

Hosken Consolidated Investments Limited (HCI) -3.15%

For the period ending 30 September 2024, revenue held steady at R6.6 billion, while net gaming win dropped 5% to R4.7 billion. Property rental income grew 3% to R381 million, but EBITDA fell 10% to R2.7 billion. Earnings per share increased by 25% to 1,530 cents, while headline earnings per share declined 46% to 529 cents. A dividend of 50 cents per share was declared, and net asset value per share decreased by 3% to 23,260 cents.

The Spar Group Limited (SPP) -0.33%

For the year ended 30 September 2024, turnover from continuing operations rose 4.0% to R152.3 billion, and operating profit increased 15.1% to R2.9 billion. Earnings per share grew 24.5% to 855.9 cents, while headline and diluted headline earnings per share both rose 11.1% to 917.9 cents and 917.5 cents, respectively.

Tharisa PLC (THA) +5.67%

For the year, reef mined increased 9.5% to 4.6 Mt, with PGM production up 0.3% to 145.1 koz and chrome concentrate production rising 7.6% to 1.70 Mt. Revenue climbed 11.0% to US$721.4 million, while operating profit surged 26.3% to US$119.6 million, and EBITDA rose 29.8% to US$177.6 million. Profit before tax edged up 3.0% to US$117.7 million. Earnings per share improved 1.1% to 27.7 cents, though headline earnings per share dipped 0.7% to 28.1 cents. Return on invested capital (ROIC) increased to 11.1%, while the total dividend dropped 10.0% to 4.5 cents per share.

Australia Enforces Social Media Ban for Under-16s

Australia has passed a groundbreaking law banning children under 16 from accessing social media, setting a global precedent with one of the strictest regulations targeting Big Tech. Companies like Meta and TikTok face fines of up to A$49.5 million ($32 million) for non-compliance. The ban, effective in a year, includes a trial phase starting January to test enforcement methods. Unlike other jurisdictions, the Australian ban is absolute, drawing attention worldwide amid concerns over social media's impact on youth mental health.

Alphabet Inc. (GOOGL) +0.07% (27^th of November 2024)

Canada’s Competition Bureau has filed a lawsuit against Google, accusing the tech giant of anti-competitive practices in online advertising. The watchdog seeks an order requiring Google to divest two ad tech tools and impose penalties to ensure compliance with competition laws. Google, however, denies the allegations, claiming robust competition in the ad market. The case marks another global push to regulate Big Tech’s dominance in digital advertising.

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