LOCAL MARKET COMMENTARY

The Top 40 Index and the All Share Index on the Johannesburg Stock Exchange closed 0.65% and 0.57% higher, respectively, ending Monday at 75,186 and 82,154 points. This week, key domestic events include the South African Reserve Bank's interest rate decision and President Cyril Ramaphosa's address to parliament on government priorities, both scheduled for Thursday. Additionally, South Africa's nuclear regulator announced on Monday that the Koeberg nuclear power plant will be allowed to run one of its two units for another 20 years after lengthy deliberations.

EUROPEAN MARKET COMMENTARY

European shares fell on Monday due to disappointing updates from luxury companies, ending a three-session winning streak. The STOXX 600 index dropped 1%, with the top ten European luxury stocks losing nearly 3% and the personal and household goods sector declining by 2.1%. Investors are now looking forward to ECB President Christine Lagarde's remarks ahead of the central bank's policy meeting later this week.

US MARKET COMMENTARY

Wall Street closed higher on Monday, extending Friday's rally amid rising expectations of a second Donald Trump presidency following a failed assassination attempt. The Dow Jones Industrial Average reached an all-time closing high. A potential Trump presidency is anticipated to bring a looser regulatory environment, more hawkish trade policies, extended tax cuts, and deregulation in various sectors. Goldman Sachs' second-quarter profit more than doubled, exceeding analyst estimates due to strong debt underwriting and fixed-income trading, leading to a 2.6% rise in its shares.

ASIA MARKET COMMENTARY

Asia-Pacific markets were mixed this morning. Following Monday's weaker-than-expected China GDP data, Goldman Sachs lowered its forecast for China's full-year GDP to 4.9% from 5%, while JPMorgan cut its prediction from 5.2% to 4.7%. Investors are awaiting updates from China's Third Plenum, focusing on high local government debt and advanced manufacturing. Japan's Nikkei 225 gained 0.51% and the Topix rose 0.78% as markets reopened after a public holiday.

CURRENCY MARKET COMMENTARY

The South African rand fell against the dollar on Monday following an assassination attempt on former U.S. President Donald Trump, which decreased risk appetite and increased global demand for safe-haven assets. This morning, the dollar remained near five-week lows as Federal Reserve Chair Jerome Powell's comments supported the likelihood of a September rate cut. Cryptocurrencies gained on the rising odds of Trump's re-election, with bitcoin rising 1% to just below $65,000, its highest level in a month.

COMMODITY MARKET COMMENTARY

Gold prices edged higher this morning after Federal Reserve Chair Jerome Powell's comments strengthened the case for a September rate cut. Investors are also awaiting more U.S. economic data for further insights on monetary policy. Meanwhile, oil prices dipped on concerns about reduced demand due to China's slowing economy, though expectations of a September rate cut by the Federal Reserve helped limit the decline.

Northam Platinum Holdings Limited (NPH) +2.12%

In F2024, key production metrics showed growth compared to F2023. Zondereinde's refined production increased by 2.1% to 328 513 ounces, Booysendal's concentrate production rose by 12.9% to 511 340 ounces, and Eland's concentrate production jumped by 41.4% to 69 020 ounces. Overall, total equivalent refined metal production from own operations went up by 10.3% to 892 876 ounces, and when including third-party purchases, it increased by 10.6% to 1 028 285 ounces. Refined metal produced grew by 5.3% to 891 721 ounces, and refined metal sold increased by 8% to 899 377 ounces. Total metal sold, including concentrate, rose by 7.3% to 950 251 ounces.

Goldman Sachs Group Inc. (GS) +2.57%

Goldman Sachs reported better-than-expected second-quarter profit and revenue on Monday, driven by strong fixed income results and lower loan loss provisions. The bank's earnings were $8.62 per share, surpassing the LSEG estimate of $8.34, and revenue reached $12.73 billion, above the $12.46 billion estimate. Profit jumped 150% from the previous year to $3.04 billion, as last year's results were impacted by write-downs in commercial real estate and the sale of a consumer business. Overall, revenue increased by 17% to $12.73 billion, boosted by growth in trading, advisory, and asset and wealth management operations.

Angel One Limited (543235) +1.50%

Indian brokerage Angel One reported a 32.6% increase in first-quarter profit, reaching 2.93 billion rupees ($35.1 million), driven by a surge in orders amid heightened trading activity. The company's orders jumped nearly 86% year-on-year, and its client base grew by 64%. The average daily turnover rose by almost 93% to 43.8 trillion rupees. Consolidated total revenue from operations increased by 74% to 14.05 billion rupees. However, total expenses nearly doubled due to a partnership with the Indian Premier League (IPL). Despite these positive results, Angel One's shares closed 1.5% higher but have lost about 36% of their value this year, compared to a 10% rise in the broader Nifty Financial Services Index.

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