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Bloomberg
3 days ago
- Business
- Bloomberg
South African Stocks Rally to Record With a Boost From China
South Africa's benchmark stock index is heading for its best month in almost a year, with a helping hand from China's most valuable company. The FTSE/JSE Africa All Share Index is up more than 7% in dollar terms in May, on track for its biggest monthly gain since June last year and its best May performance since 2013. It has outperformed emerging-market peers as well as the S&P 500 and the Stoxx Europe 600.
IOL News
22-05-2025
- Business
- IOL News
Markets pretty much shrug off Trump's attack on Ramaphosa
President Cyril Ramaphosa met with US President Donald Trump at the White House this week. Image: GCIS Even as US President Donald Trump lashed President Cyril Ramaphosa over alleged genocide affecting white farmers, neither the rand nor the JSE made any real moves. During a televised meeting between the two late on Wednesday, Trump showed Ramaphosa a video of then EFF leader Julius Malema chanting 'kill the boer, kill the farmer,' which dates back several years and highlighted the Witkruis Monument, which commemorates farmers killed during farm attacks. The meeting between the two came on the same day that the third iteration of the National Budget was tabled. The 'boring' fiscal framework is set to please investors and also didn't affect markets dramatically. Ramaphosa, who was not present for the tabling of the document for the first time since his inauguration nine years ago, joined virtually from Washington, where it was 5am. The rand was stable early on Thursday morning at R17.97, after closing at a similar level on Wednesday evening. It opened at R17.89 on Thursday, which signifies no major movement. The JSE's All Share Index, by late morning, was 0.56% down on the day, coming off its 1% gain and seven-day high at Wednesday's close. Johann Els, Old Mutual chief economist, said markets are relatively calm following the fireside chat between Trump and Ramaphosa. 'They're relatively around the levels that they were before the meeting over the last few days, in fact'. Els said markets might have expected perhaps a slightly worse outcome. 'There was an ambush, but the President kept his calm, so I think it's roughly as expected to slightly better than expected, and therefore there's no big impact on markets,' he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Donald MacKay, founder and chief executive of XA Global Trade Advisors, said that there was, as yet, no indication of any trade deal. Following Trump's April 2 'Liberation Day' announcement of worldwide tariffs, the US President backtracked and paused them for 90 days. As a result, South Africa's 30% import tax was also halted, although the one affecting the automotive sector remained in place. MacKay added 'what is interesting though, is that China got another 90-day reprieve on their tariffs, which is a sign, I think, that Trump is feeling pressure at home. This could translate into South Africa also seeing an extension of the 90 days.' IOL
IOL News
22-05-2025
- Business
- IOL News
South Africa's National Budget: Stability in the Rand amid muted market reactions
Finance Minister Enoch Godongwana delivers the Budget speech in National Assembly held at CTICC in Cape Town. Image: Kopano Tlape/GCIS Following Finance Minister Enoch Godongwana's muted presentation of the National Budget, for the third time, on Wednesday, markets haven't been seriously agitated, and the fiscal framework is being seen as broadly investor friendly. The rand was stable early on Thursday morning at R17.97, after closing at a similar level after the National Budget was presented. It had opened at R17.89 on Wednesday, which signifies no major movement. The JSE's All Share Index, by late morning, was 0.56% down on the day, coming off its 1% gain and seven-day high at Wednesday's close. Old Mutual wealth investment strategist, Izak Odendaal, said the 'decidedly uneventful' and 'boring' National Budget was good and the financial market response was muted. The rand was stable early on Thursday morning at R17.97, after closing at a similar level after the National Budget was presented. Image: Morningstar Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Godongwana proposals included limiting direct tax increases to so-called 'sin' taxes, an increase in the fuel level, although he did say that gross domestic product (GDP) for the year would come in at 1.4% this year, down from a previously predicted 1.9%, markets haven't moved dramatically. At the same time, he said it was not an 'austerity' budget, indicating that he did not seek to reduce expenditure dramatically. He did, however, warn that subsequent budgets would need to ensure that government received more revenue, and that government would continue to pay large amounts to service debt, which would amount to more than R1.3 trillion over the next three years. South Africa's two previous Budget attempts failed to gain approval because of proposed VAT hikes, and markets had been concerned over DA threats to leave the multi-party government. Investec chief economist, Annabel Bishop, said that – with revenue and expenditure projections revised lower, and genuine potential for upside on revenue – the credit rating agencies are unlikely to react negatively. Casey Sprake, economist at Anchor Capital said, post the National Budget, National Treasury has made a significant policy pivot by cutting R70 billion in spending over the period between fiscal 2026 and 2028, which offsets the lower revenue trajectory and helps stabilise the main budget deficit. 'In an environment where fiscal credibility is under strain, such restraint is likely to be well received by financial markets,' she noted. Odendaal said that the 'key thing from investors' point of view is that fiscal consolidation remains the priority'. Sprake added that the 2025 National Budget is 'broadly seen as marginally bond-positive and moderately supportive of the rand over the medium term, primarily due to its emphasis on expenditure restraint amid lower revenue projections'. What is crucial, Sprake added, is that government has chosen to rein in spending rather than implement broad-based or distortionary tax increases which is 'an approach that sends a constructive message to investors'.
Zawya
06-05-2025
- Business
- Zawya
Nigeria: Equities market opens week strong as ASI adds 0.6%
Equities trading at the Nigerian Exchange (NGX) opened the trading week on a strong note, as the All-Share Index rose by 0.62 percent to close at 106,698.50 basis points. Market capitalization followed suit, increasing by 0.62 percent to N67.06 trillion, thereby adding approximately N412.3 billion to investors' wealth. Market breadth was positive, with 35 gainers outpacing 29 decliners. On the performance board, top gainers included Beta Glass, The Initiates, Cadbury Nigeria, Caverton Offshore Support Group, and Multiverse, after their respective share prices appreciated by 9.97 percent, 9.90 percent, 9.87 percent, 9.77 percent, and 9.45 percent. Conversely, Ecobank Transnational Incorporated, Meyer, Custodian Insurance, Mutual Benefits Assurance, and Access Holdings led the losers' chart, as their share prices declined by 9.62 percent, 6.70 percent, 4.72 percent, 4.49 percent, and 3.88 percent, respectively. Sectoral performance was largely positive: the Insurance, Consumer Goods, Oil & Gas, Industrial Goods, and Commodity sectors advanced by 2.69 percent, 2.90 percent, 2.58 percent, 0.07 percent, and 1.59 percent, respectively, while the Banking sector declined by 1.62 percent. Trading activity remained robust, with the number of deals, volume, and value traded rising by 1.33 percent, 0.66 percent, and 26.61 percent, respectively. Overall, transactions worth N18.93 billion were recorded across 18,612 deals involving 569.04 million units. On Monday, FBN Holdings was the toast of investors, as its shares topped the activity chart with 106 million units traded. Guaranty Trust Holding Company led in terms of value, with N5.6 billion worth of shares exchanged.
Zawya
04-05-2025
- Business
- Zawya
Markaz: Kuwait markets remain strong on a year-to-date basis despite the dip in April 2025
Kuwait: Kuwait Financial Centre 'Markaz' released its Monthly Market Review report for April 2025. Kuwait equity market continues to be the top performer among GCC markets on year-to-date basis as of April 2025. However, during April, Kuwait markets were negative, in line with many global and regional markets. Kuwait's All Share Index declined by 1.4% amid concerns over impact of trade tensions on economic outlook and oil prices. Consumer staples and real estate were the top gainers, rising by 6.3% and 4.9% respectively. The banking sector index declined by 1.9% for the month. Among Premier Market stocks, Gulf Cables and Kuwait Real Estate Company were the top gainers, rising by 12.5% and 11.2% respectively. Gulf Cables announced that its subsidiary, Gulf Cable and Multi Industries Company has been awarded a tender for supplying copper and aluminium cables to Jordan Electric Power Company to the tune of KD 3.95 million (USD 12.91 million). This is likely to improve operational profit by 5% to 7% in 2025. Kuwait Real Estate Company had reported an 18.9% y/y increase in net profit in FY 2024 driven revaluation gains on investment properties. Its net rental income has also grown by 9.4% y/y amid strong demand and high occupancy levels. IMF has lowered its estimate for Kuwait's real GDP growth in April 2025 to 1.9% down from its December 2024 estimate of 2.6%, due to delayed unwinding of production cuts during the year. OPEC+ began unwinding production cuts in April 2025, while it had initially planned to start in October 2024. However, OPEC+ has announced plans to further increase its production in May 2025. According to the new plan, Kuwait would be producing 2.443 million bpd, up from the earlier planned 2.428 million bpd. Kuwait has initiated merger of two of its state-owned oil firms, Kuwait National Petroleum Company (KNPC) and Kuwait Integrated Petroleum Industries Company (KIPIC), as the country plans to restructure its energy industry. The S&P GCC Composite index declined by 1.0% in April 2025 with mixed performance across GCC markets, pressured by trade war concerns and the decline in oil prices. As part of its levy of tariffs on imports from countries across the World, the U.S has also levied a 10% blanket tariff on imports from GCC, effective from April 5. Saudi equity index declined by 2.9% during the month, even as positive earnings lent some support. ACWA Power and Saudi Aramco had declined by 6.2% and 5.2% respectively for the month. Saudi Telecom gained 5.0% for the month supported by 11% y/y increase in its net profit for Q1 2025. Abu Dhabi's equity index increased by 1.8% in April 2025, supported by gains in blue chips. First Abu Dhabi Bank gained 8.7% for the month on the back of major restructuring of its executive committee. Dubai's equity index gained 4.1% for the month, supported by real estate and banking stocks. Dubai Islamic Bank gained 5.4% for the month, as its net profit increased by 8% y/y in Q1 2025 on the back of growth in quality earning assets. Qatar's equity markets gained 2.2% for the month supported by positive earnings. IMF has lowered Saudi Arabia's GDP growth for 2025 to 3.0%, down from 3.3% in January 2025 amid decline in oil prices and rising global risks. UAE is expected to grow by 4.0% in 2025, down from an earlier estimate of 5.1%. S&P has downgraded Bahrain's outlook to negative from stable citing elevated fiscal deficits amid lower oil prices, maintenance at the Abu Sa'fah oil field, impact of market volatility on funding costs and higher social spending. Global markets were mixed during April 2025. The MSCI World index was slightly positive while the S&P 500 index declined by 0.8% for the month. Earlier in the month, U.S equities declined steeply on the back of Trump administration's announcement of a broad range of higher-than-expected tariffs as they fueled concerns over economic slowdown and resurgence of inflation. U.S had levied 145% tariffs on most Chinese goods and Beijing had retaliated with 125% levies on U.S. imports. U.S has also levied a 10% baseline tariff on almost all imports to the U.S. However, subsequent announcement of a 90-day pause on the reciprocal tariffs for most countries to allow time for negotiations and possible de-escalation of trade tensions between U.S and China have helped markets recover some of the losses. Nasdaq 100 gained 1.5% during the month, supported by better-than-expected earnings from tech stocks. IMF has lowered its global growth estimate for 2025 to 2.8%, down from 3.3% in January. The MSCI EM index gained 1.0% during the month supported by 3.7% rise in Indian equities. Chinese equities declined by 1.7% during the month due to trade tensions even as hopes of stimulus lent some support to the markets. While Indian equities had also been weighed down by concerns over levy of tariffs in the earlier part of the month but later recovered. U.S inflation stood at 2.4% y/y in March 2025, declining from the 2.8% y/y reading in February 2025 due to decline in energy prices. The U.S labor market added 228,000 jobs in March, up from 117,000 jobs added in February. Job gains were supported by job gains in sectors such as healthcare, retail, transportation and construction. The yield on the 10-year US treasury notes remained volatile during the month, declining by 6 bps for the month to 4.17%. Earlier in the month, amid concerns over high inflation and lower growth due to tariff tensions, 10-year yields had risen to about 4.48%. Subsequently, yields trended lower later in the month on hopes of easing trade tensions. Oil (Brent) prices closed the month at USD 63.1 per barrel, down 15.5% during the month. The commodity reached a four-year low during the month, weighed by OPEC+'s decision to increase oil production and trade tensions. OPEC+ has decided to raise output by 411,000 bpd in May 2025, up from the earlier announced hike of 135,000 bpd citing healthy market fundamentals and the positive market outlook. However, output cut plans for some OPEC+ members, U.S sanctions targeting Iranian oil exports and optimism over U.S-EU trade deal aided in stemming decline in oil prices. OPEC+ has also announced updated output cut plans for 7 countries including Iraq, Kazakhstan etc. who have pumped above their agreed quotas. Gold prices closed at USD 3,287, gaining 5.3% during the month and 25.3% so far this year as the commodity continued to benefit from safe-haven demand and Central Bank buying amid trade tensions. Persisting trade tensions amid levy of tariffs by U.S and retaliatory tariffs by countries like China has increased concerns over global growth and inflation outlook. This is likely to continue to impact global markets. However, pause in levy of reciprocal tariffs by U.S, E.U-U.S tariff negotiations offer some cause for optimism. While trade tensions and lower oil prices might dampen investor sentiment in GCC, positive outlook on corporate earnings, uptick in non-oil economic activity and continued implementation of reforms are likely to provide some support to markets. About Kuwait Financial Centre 'Markaz' Established in 1974, Kuwait Financial Centre K.P.S.C 'Markaz' is one of the leading asset management and investment banking institutions in the MENA region with total assets under management of over KD 1.41 billion (USD 4.57 billion) as of 31 December 2024. Markaz was listed on the Boursa Kuwait in 1997. Over the years, Markaz has pioneered innovation through the creation of new investment channels. These channels enjoy unique characteristics and helped Markaz widen investors' horizons. Examples include Mumtaz (the first domestic mutual fund), MREF (the first real estate investment fund in Kuwait), Forsa Financial Fund (the first options market maker in the GCC since 2005), and the GCC Momentum Fund (the first passive fund of its kind in Kuwait and across GCC that follows the momentum methodology), all conceptualized, established, and managed by Markaz. For further information, please contact: Sondos Saad Corporate Communications Department Kuwait Financial Centre K.P.S.C. "Markaz" Email: Ssaad@
