The Week Ahead

The Week Ahead

29 April - 3 May

The Rand

The rand strengthened against major currencies after trading relatively flat earlier in the week. Thursday saw strong gains after monthly domestic producer inflation came in as expected. Hawkish comments from the Federal Reserve were offset by weaker economic data out of the US, which saw the dollar broadly weaker.

Political uncertainty ahead of May elections is likely to temper gains in the ZAR.

Commodities

Industrial metals have been leading the charge within the commodity space over the last week and month. Signs of improving steal demand in China has helped continue the rebound in commodities associated with the production thereof, such as coking coal and iron ore. Concerns around supply shortfalls are helping drive the price of copper higher as well, while indications of a stronger than anticipated Chinese economy is boosting demand side assumptions.

Also supporting prices in general has been a short term weakening of the US dollar.

A slight easing of Middle Eastern tensions has however seen precious metals such as gold starting to correct from recent highs.

Oil prices continue to balance geopolitical tensions with the outlook for economic growth.

Companies

Clicks Group Limited: 1H24 results showed diluted EPS to have increased by 12.9% from the prior year’s comparative period.

Anglo American PLC (SA): has received an all-share buyout proposal from BHP Group, a deal that would create the world’s biggest copper miner.

Anglo American PLC (SA): in its 1Q24 production update, guided that copper production increased by 11.0%, steelmaking coal production increased by 7.0% while rough diamond production decreased by 23.0% and platinum group metals production decreased by 7.0%. Nickel production declined to 9.50kt from 9.70kt recorded in the previous year.

Capitec Bank Holdings Ltd: FY23 results showed diluted EPS to have increased by 15.5% from the prior year.

Anglo American Platinum Ltd: in its 1Q24 production update, guided that total platinum group metals (PGMs) production decreased by 7.0%.

Kumba Iron Ore Limited: in its production and sales update for the first quarter ended 31 March 2024, guided that total production decreased by 2.0% although total sales decreased by 10.0% against the prior year’s comparative period.

Sasol Ltd: in its 3Q24 production update, guided that production volumes were 3.0% higher than the prior period mainly due to a phase shutdown in FY24 relative to a total shutdown in the prior year.

Merafe Resources Limited: in its 1Q24 production update, guided that attributable ferrochrome production fell to 77.00kt from 103.00kt recorded in the previous year. The reduction in production is due to the Rustenburg smelter which has not operated in 2024 in response to market conditions.

Cashbuild Limited: in its 3Q24 operational update, guided that group revenue increased 3.0% as compared with the previous year. For the 312 existing stores (in existence prior to July 2022), revenue increased by 2.0% and the 9 new stores, contributed 1.0% growth.