SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.03% lower at the 89 898 level.
In a trading update from Telkom SA SOC Limited for the year ended 31 March 2025, the company said that they expect basic earnings per share (BEPS) to increase by 300% to 1,542.0 cents from 385.5 cents in 2024. Headline earnings per share (HEPS) are expected to grow by 10% to 413.6 cents from 376.0 cents in 2024. The significant increase in BEPS was primarily due to the profit from the sale of Swiftnet, which was finalized on 27 March 2025. Telkom received R6.575 billion in cash from the sale. A further trading statement will be issued when there is a more precise range for BEPS and HEPS. The annual results for FY2025 are expected to be released on 10 June 2025.
SA Economy:
In February 2025, Producer Price Inflation (PPI) eased slightly to 1% from 1.1% in January, falling below market expectations of 1.3%. The moderation was primarily driven by slower price growth in key sectors, food products, beverages, and tobacco (4.2% vs. 4.4% in January), as well as metals, machinery, equipment, and computing equipment (1.2% vs. 1.4%). Non-metallic mineral products also seen a decline (-1.6% vs. 1.7%), along with electrical machinery and communication equipment (3.7% vs. 5.1%). Certain industries continued to experience deflation, paper and printed products (-2.8% vs. -3.1%), petroleum, chemical, rubber, and plastic products (-1.8% vs. -1.8%).
On a monthly basis, producer prices rose by 0.4% in February, after increasing by 0.5% in the prior month and compared with market expectations of a 0.7% advance. The data reflects easing cost pressures in the production sector, which could help contain broader inflationary trends in the economy.
Global Economy:
U.S. economic growth slowed in the fourth quarter. Gross domestic product increased at an annualized rate of 2.4% during the period, compared to a rise of 3.1% in the July-September quarter. Economists had predicted that the number would remain unrevised at a prior estimate of 2.3%.
Global Company:
The FTSE 100 closed 0.27% lower at 8 725. UK stocks traded lower, mirroring declines across Europe as Trump’s decision to impose 25% tariffs on imported cars weighed on automakers. Aston Martin fell 7%, while fashion retailer Next surged 10% after reporting annual sales and profit growth, which was in line with analysts’ expectations.
Asian markets were mostly lower with auto makers selling off for a second session.
The Hang Seng Index is trading 1.1% lower at 23 317.
In China, the Shanghai Composite is down 0.66% at 3 351.
The Dow Jones Industrial Average closed 0.37% lower at 42 299, while the S&P 500 closed 0.33% lower at 5 693.
Automaker stocks declined, with General Motors down 7.3% and Ford losing 3.9%, while Tesla rose 0.4% due to its domestic production.
Lululemon Athletica said that economic uncertainty was dampening demand for its pricey leisure apparel and U.S. tariffs on imports from China and Mexico had squeezed its forecast for the year. The company’s annual revenue and profit outlook fell short of analysts’ expectations. Lululemon said it expects its fiscal 2025 revenue to be between $11.15 billion and $11.30 billion, compared with the analysts’ estimates of $11.31 billion.
Commodities:
Gold is trading higher by 1.47% at $3 077/oz, while Platinum is higher by 1.17% to $986.75/oz.
Brent crude was marginally higher at $73.72 a barrel.
Currency:
The rand traded at R18.27 against the US Dollar, R23.65 against British Pound and R19.71 against the Euro.
The Euro is slightly weaker against the US Dollar to trade at $1.0790.
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| Market Indicators | |||||||
| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 3077.95 | 1.47% | USD/ZAR | 18.27 | Top40 | 82538.43 | 0.00% |
| Platinum | 986.75 | 1.17% | GBP/ZAR | 23.65 | Dow 30 | 42299.70 | -0.37% |
| Brent | 73.72 | 0.01% | EUR/ZAR | 19.71 | S&P 500 | 5693.31 | -0.33% |
| Copper | 5.09 | -3.14% | EUR/USD | 1.0790 | FTSE | 8666.12 | -0.27% |
| Palladium | 980.85 | 1.39% | USD/JPY | 150.84 | DAX | 22678.74 | 1.28% |
| Iron Ore | 102.90 | 0.15% | BITCOIN | 86014.62 | Shanghai | 3351.65 | -0.66% |
| Source: FACTSET | |||||||