SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.2% lower at the 80 620 level.
Anglo American said they hired three banks to facilitate the sale of its steelmaking coal assets, which analysts value at $5 billion. This move is part of a broader restructuring effort to fend off an approach from rival BHP. Anglo’s CEO, Duncan Wanblad said that the sale of its five operating coal mines is part of a broader strategy to divest less profitable assets and focus on expanding its copper output.
Pick n Pay announced the terms of its R4 billion rights offer underwritten by Absa, Rand Merchant Bank, and Standard Bank. Pick n Pay is targeting gross proceeds of R4 billion through a Rights Offer. This offer will consist of renounceable rights to subscribe for new Pick n Pay ordinary shares (“Rights Offer Shares”) available to shareholders, excluding those residing in certain restricted jurisdictions as detailed in the Rights Offer Circular. The offer is intended for shareholders recorded in the register on the record date for the Rights Offer, expected to be on or about Friday, 19 July 2024. The final terms of the Rights Offer, including the Rights Offer price and ratio of entitlement, will be announced on SENS by Pick n Pay on the finalisation date, expected to be on or about Thursday,11 July 2024.
SA Economy:
Newly appointed Department of trade, industry and competition minister Parks Tau has committed to engage the private sector to identify priority areas to enable implementation of the industrial policy and economic transformation to be accelerated. The minister said that all we need to do is bring all critical stakeholders together and focus on transforming plans into actions to achieve the intended results. This will accelerate industrialization, economic growth, job creation, and transformation.
Global Economy:
The NFIB Small Business Optimism Index in the US rose to 91.5 in June of 2024 from 91.5 in the previous month, the highest since the start of the year, expectations were for the index to slow to 89.5.
The Eurozone Sentix Investor Confidence index for July declined to -7.3 vs est. -0.5 as the French election uncertainty made a negative impact on investor confidence.
US Federal Reserve Chair Jerome Powell testimony before Congress, reiterated the central bank’s cautious approach to interest rate cuts. Powell said they need more data to gain confidence that inflation is sustainably moving toward 2%, although he warned that the economy and labor market are showing signs of cooling.
China’s annual inflation rate edged down to 0.2% in June 2024 from 0.3% in the prior two months, falling short of market estimates of 0.4%.
China’s producer prices fell by 0.8% y-o-y in June 2024, matching market forecasts while easing from May’s figure of a 1.4% decline.
Markets are now waiting for US June CPI data, scheduled for release tomorrow and is expected to come in at 3.1% y/y in June, from 3.3% y/y in May. On a m/m basis, headline CPI is likely to have increased by 0.1% in June, after having stagnated in May.
Global Company:
The FTSE 100 closed 0.66% lower at 8 139 as markets continued to assess incoming changes to policy with UK’s new government and its impact on the macroeconomic and corporate outlook.
The Hang Seng and Shanghai markets are struggling for clear direction as investors assessed the latest inflation figures.
The Hang Seng Index is trading 0.15% lower at 17 498.
In China, the Shanghai Composite is down 0.51% to 2 944.
The Dow Jones Industrial Average closed 0.13% lower to 39 291, while the S&P 500 closed 0.07% higher at 5 576.
The financial sector made some gains, with standout performances from JP Morgan Chase (+1.2%) and Bank of America (+2%). Tesla shares achieved a 10-day winning streak, rising 3.7%, while Apple gained 0.4% to become the first U.S. company to surpass a market capitalization of $3.5 trillion.
Commodities:
Gold is trading higher by 0.23% at $2 369/oz, while Platinum is lower by 2.56% to $986.63/oz.
Brent crude was 1.75% lower at $83.95 a barrel.
Currencies:
The rand traded at R18.14 against the US Dollar, R23.20 against British Pound and R19.62 against the Euro.
The Euro is slightly weaker against the US Dollar to trade at $1.0817.
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| Market Indicators | |||||||
| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 2369.65 | 0.23% | USD/ZAR | 18.14 | Top40 | 73580.41 | -0.19% |
| Platinum | 986.63 | -2.56% | GBP/ZAR | 23.20 | Dow 30 | 39291.97 | -0.13% |
| Brent | 83.95 | -1.75% | EUR/ZAR | 19.62 | S&P 500 | 5576.98 | 0.07% |
| Copper | 4.56 | -1.75% | EUR/USD | 1.0817 | FTSE | 8139.81 | -0.66% |
| Palladium | 978.80 | -4.41% | USD/JPY | 161.53 | DAX | 18236.19 | -1.29% |
| Iron Ore | 106.70 | -1.50% | BITCOIN | 59067.00 | Shanghai | 2944.45 | -0.51% |
| Source: FACTSET | |||||||