The Traders' Update, 18-19 November 2024
Realeboha Molaba
Actuarial Junior Consultant; Actuarial Science Honours Graduate from the University of Cape Town; Actuarial Science and Mathematical Statistics Graduate from the University of the Witwatersrand
Segment 1: Overseas Markets
European Markets
Equity markets opened mostly lower on Tuesday, i.e.:
On the individual shares front, British homebuilder Vistry Group shares plunged after the company defended the appointment of Greg Fitzgerald as both the company's chief executive and executive chair. Shareholders expressed concerns that the combination of roles would contravene the U.K.'s Corporate Governance Code.
British retailer B&M European shares fell after the company reported that it was launching a ￡250 million (US$316 million) senior secured notes offering. The company is planning to use the proceeds from the sale to repay debt and to increase the number of its stores and inventory following shipping disruptions.
British aerospace company Melrose Industries reported that its revenue rose by 7% in the four months through October 2023.
Danish pharmaceutical company Bavarian Nordic shares rose to the top of the Stoxx 600 and hence recovered some of the losses incurred after the company reported an annual drop in its third-quarter revenue on the back of volatile demand for its mpox vaccine.
On the data front, Eurostat reported that the Eurozone's trade surplus came in at €12.5 billion (US$13.2 billion), up from the €9.8 billion reported in the same period in the last year. Exports rose by 0.6% year-on-year to €237.8 billion and imports fell by 0.6% to €225.3 billion.
Preliminary data from Eurostat showed that headline consumer inflation came in at 2%, higher than the 1.7% reported in the previous month.
German statistical organisation Destatis reported that German exports in the third quarter rose by 0.5% year-on-year to €384 billion (US$405 billion).
Ukraine's ministry of economy reported that the economy expanded by 1.3% year-on-year in October, citing major support from the transport and construction sectors.
Asia-Pacific Markets
Hong Kong
Chinese tech firm Xiaomi shares rose as LSEG data showed that third-quarter revenue estimates would likely come in at CN￥91.11 billion (US$12.58 billion) and gross profit is likely to come in at CN￥18.72 billion, both higher than the previous third quarter's results.
Embattled property developer Country Garden submitted the required preliminary terms of an offshore debt res
The Hang Seng closed 0.77% higher at 19,576.61.
China
Mainland markets closed lower, i.e.:
Japan
Broader markets closed lower, i.e.:
South Korea
Consumer electronics corporation Samsung Electronics shares surged on Monday after the company reported that intends to purchase back about ?10 trillion (US$7.19 billion) worth of its own stock over the next 12 months.
Korean markets closed higher, i.e.:
Singapore
Non-oil domestic exports in October fell by 4.6% year-on-year, significantly lower than the expected 2.6% growth expected by polled economists. On a monthly basis, they sharply fell by 7.4%.
The Straits Times Index closed 0.32% lower at 3,732.55.
Australia
The S&P/ASX 200 closed 0.18% higher at 8,300.20.
New Zealand
Statistics NZ reported that the output producer price index for the third quarter rose by 4.2% year-on-year and this is the fastest annual increase since the first quarter of 2023. On a quarterly basis, it rose by 1.5%, marking the fastest quarterly increase since the third quarter of 2022.
The S&P/NZX 50 closed at 12,764.65.
U.S. Markets
Equity markets closed mixed on Monday, i.e.:
Server and data storage provider Super Micro Computer shares surged to the top of the S&P 500 after the company reported that it is prepared to submit a plan that will stop its delisting from the Nasdaq. The company failed to release its audited financial statements in time after accounting irregularities were cited.
Supplier of medical and dental supplies Henry Schein shares rose on reports that activist investor Ananym Capital Management is encouraging the company to take on many changes that could boost its share price such as reshuffling its board of directors, cutting costs and evaluating the potential sale of its medical distribution business.
Pharmaceutical company Moderna shares rose after British investment bank HSBC upgraded its rating on the stock from "hold" to "buy" citing that the company's stock price is undervalued. The stock price recovered some of the losses posted in the last week.
Drugstore operator CVS Health shares rose after it announced that it will be adding four new members to its board of directors in a deal with activist investor Glenview Capital.
Provider of technology and engineering solutions to the U.S. government Amentum shares plunged to the bottom of the S&P 500 as the company faces integration risks after its merger with several divisions caused its subsidiary Jacobs Solutions to be spun out.
Analytics software firm Palantir Technologies shares fell after a regulatory filing showed that the company's CEO had disposed off 4.5 million of the company's stock raising concerns regarding the company's upcoming performance and management confidence.
Transportation company Uber Technologies shares fell on reports that the current U.S. administration may relax regulations relating to self-driving cars which would enable a federal framework for autonomous vehicles to operate. Hence this would stiffen competition for Uber as electric vehicle (EV) maker Tesla would be able to launch its autonomous robotaxi hailing business.
Segment 2: African Markets
Ghana
The government is clamping down on private pension fund managers seeking to invest in foreign assets as it would place more pressure on the local currency.
Segment 3: South African Markets
Entertainment company Multichoice reported that it has sealed a deal with conglomerate life insurer Sanlam to acquire a 60% stake in Multichoice's insurance business, NMS Insurance Services. The deal is valued at R2.7 billion (US$150 million) and Sanlam will pay out an inital R1.2 billion at outset, with the remaining R1.5 billion settled on a performance-based cash earn-out scale.
eCommerce and technology investor Naspers released its trading update expectations for the first half of 2025 such that it expects that core HEPS and HEPS are expected to increase by between 87.2% and 93.8% and 103.2% and 109.6% respectively.
Lender Nedbank aims to spend over R12 billion (US$660 million) to establish operations throughout the African continent as it aims to reduce its reliance on its South African operations. Currently, the group's South African business contributes 90% to the group's total profit.
The South African government plans to spend around R21.7 billion (US$1.2 billion) at O.R. Tambo International Airport (JNB) as it seeks to transform the airport's cargo and logistics area. The government anticipates that regional air traffic is expected to increase by 4.85% year-on-year and international air traffic is expected to increase by 4.26%.
U.S. investment bank Citigroup expects South African equities to overcome their recent weakness and outperform other emerging market peers due to optimism over the country's seventh administration.
Telecommunications company Telkom has reported its interim results for the six months through September 2024, i.e.:
Vehicle buyer-and-seller WeBuyCars reported its financial results for the past financial year for the first time since its listing on the Johannesburg Stock Exchange (JSE), i.e.:
Chicken producer Astral Foods reported its financial results for the prior financial year, i.e.:
Asset manager Coronation released its financial results for the year ended 30 September 2024, i.e.:
Segment 4: JSE Afternoon Market Update