The South African Reserve Bank (SARB) lowered its key interest rate by 25 basis points to 7.50%, marking its third consecutive rate cut. Picture: Karen Sandison/ Independent Newspapers.
Anchor Capital said that South African markets closed in the green yesterday, led by gains in mining sector stocks.
Platinum miners, Anglo American Platinum, Northam Platinum and Impala Platinum advanced 5.5%, 3.5% and 3.3%, respectively.
Diversified miners, Kumba Iron Ore, Pan African Resources, Exxaro Resources and African Rainbow Minerals climbed 5.4%, 5.1%, 3.6% and 3.1%, respectively.
Gold miners, Sibanye Stillwater, AngloGold Ashanti and Gold Fields gained 4.5%, 2.6% and 1.7%, respectively.
Telecommunications companies, MTN Group and Telkom SA SOC rose 2.8% and 1.9%, respectively.
Food companies, RCL Foods and Famous Brands added 2.5% and 2.1%, respectively.
On the flipside, property developers, Hyprop Investments and Vukile Property Fund declined 1.4% and 1.3%, respectively.
The JSE All Share index advanced 0.4% to close at 85,685.49.
UK MARKET REVIEW
The UK market finished firmer yesterday, buoyed by gains in mining sector stocks and as strong corporate earnings boosted investor sentiment.
Wealth management company, St James’s Place soared 10.9%, after the company reported better than expected managed funds in FY24.
Telecommunications company, Airtel Africa surged 9.0%, after the company reported upbeat results in 3Q24.
Miner, Endeavour Mining jumped 7.2%, after the company reported a 34.0% rise in gold production in FY24.
Miners, Fresnillo, Antofagasta and Glencore advanced 5.6%, 3.1% and 2.2%, respectively.
Energy company, Shell gained 2.6%, after the company reported a 16.0% drop in FY24 profit amid weakness in oil and gas prices.
The FTSE 100 index advanced 1.0% to close at 8,646.88.
US MARKET REVIEW
US markets ended higher yesterday, as investors assessed a series of key corporate earnings results.
Technology company, International Business Machines (IBM) Corporation surged 13.0%, after the company reported higher profits in 4Q24.
Electric vehicles company, Tesla advanced 2.9%, after CEO Elon Musk promised the launch of long-awaited cheaper models in 1H25 and start testing an autonomous ride-hailing service in June.
Social media company, Meta Platforms gained 1.6%, after the company reported better than expected revenue in 4Q24.
On the contrary, technology company, Microsoft Corporation dropped 6.2%, after the company projected disappointing growth in its cloud computing business.
The S&P 500 index rose 0.5% to settle at 6,071.17, while the DJIA index advanced 0.4% to close at 44,882.13.
The NASDAQ index climbed 0.3% to end the trading session at 19,681.75.
ASIA MARKET REVIEW
Asian markets are trading mixed this morning.
In Japan, pharmaceutical company, Chugai Pharmaceutical has advanced 5.1%.
On the flipside, automobile company, Hino Motors has plunged 9.9%.
In South Korea, ventilation and air conditioning products company, Kyung Dong Navien has plummeted 9.5%.
On the contrary, chemical company, Chin Yang Chemical has surged 15.1%.
In Hong Kong, markets are closed today on account of a public holiday.
On Tuesday, the Hang Seng index advanced 0.1% to close at 20,225.11.
Today, the Nikkei 225 index is trading 0.1% higher at 39,540.37, while the Kospi index is trading 1.5% lower at 2,499.12.
COMMODITIES
At 05:30, Brent prices rose 0.6% to trade at $77.32/bl.
Yesterday, Brent prices rose 0.4% to settle at $76.87/bl, as investors await clarity on US tariffs on Canadian and Mexican crude imports, which might potentially take effect this weekend.
At 05:30, gold prices marginally advanced to trade at $2,797.13/oz.
Yesterday, gold gained 1.3% to close at $2,796.27/oz, as concerns over US tariff threats boosted demand for the safe haven yellow metal.
Yesterday, copper rose 0.7% to close at $9,008.68/mt. Aluminium closed 0.2% higher at $2,626.14/mt.
CURRENCIES
Yesterday, the South African rand weakened against the US dollar.
The South African Reserve Bank (SARB) lowered its key interest rate by 25 basis points to 7.50%, marking its third consecutive rate cut.
However, it stressed the uncertain global situation and mentioned it had considered the potential effects of a trade war.
In the US, annualised GDP rose less than expected in 4Q24.
Moreover, the number of people filing for initial jobless claims declined more than expected in the week ended 24 January 2025.
Meanwhile, pending homes sales unexpectedly dropped in December.
The yield on benchmark bonds rose yesterday. The yield on the SA 10-year generic bond climbed to 10.31%, while that for SA 20-year generic bond rose to 11.18%.
At 05:30, the US dollar is trading 0.2% lower against the South African rand at R18.5569, while the euro is trading 0.3% lower at R19.2696.
The British pound has declined 0.2% against the South African rand to trade at R23.0413.
Yesterday, the euro declined against most of the major currencies. In Germany, gross domestic product (GDP) declined more than expected in 4Q24. In the eurozone, GDP unexpectedly remained flat in 4Q24.
Moreover, the unemployment rate rose in line with market expectations in December.
The European Central Bank (ECB) cut its key interest rate for the fourth consecutive time.
At 05:30, the euro slipped 0.1% against the US dollar to trade at $1.0387, while it has weakened 0.1% against the British pound to trade at GBP0.8364.
BUSINESS REPORT