Daily Report 09 May 2026

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 3.61% higher at the 119 166 level.

In a trading update from Quantum Food Holdings for the six months ended March 2026, the group said it expects a strong improvement in first‑half earnings as favourable trading conditions and increased demand supported performance. Headline earnings per share are forecast to rise by 12% to 20% to between 83.5 cents and 89.5 cents, while earnings per share are expected to increase by 17% to 25% to between 87.4 cents and 93.4 cents, partly boosted by a once‑off profit from the disposal of a dormant Ugandan asset. Improved profitability was driven by lower feed costs, reduced load‑shedding, operational efficiencies and recovery from prior avian flu impacts, particularly in poultry and African operations. While some pressure was noted in the egg business due to lower selling prices, gains across feeds, broiler farming and African operations more than offset these challenges.

In an operational update from Gold Fields for the quarter ended 31 March 2026, the Group reported a strong year‑on‑year increase in attributable gold‑equivalent production of 15% to 633 koz, underpinned by the first full quarter of steady‑state output at Salares Norte. Safety performance remained a key highlight, with no fatalities or serious injuries recorded and continued progress on the multi‑year Safety Improvement Plan. Costs rose during the quarter, with AISC increasing 13% year‑on‑year due mainly to higher royalties, inflationary pressures and stronger producer currencies, but remained in line with full‑year guidance. Financially, Gold Fields strengthened its balance sheet through robust cash generation, reducing net debt by 34% year‑on‑year to US$1.3 billion while remaining on track to meet its 2026 production and cost guidance.

In a trading update from Altron Limited for the year ended 28 February 2026, the group indicated a materially stronger earnings performance compared with the prior year as it finalises its annual results. Headline earnings per share from continuing operations are expected to rise by 31% to 37% to between 233 and 243 cents, while group HEPS are forecast to increase by a larger 68% to 74% to between 225 and 233 cents. Earnings per share show similar momentum, with continuing operations EPS expected to grow by 31% to 37% and group EPS by 82% to 87%. The company also confirmed that these results are unaudited and that full year results will be released on 25 May 2026.

SA Economy:

The 10‑year government bond yield eased to around 8.63%, down from recent one‑month highs near 8.85%, as growing optimism over a possible resolution to the US–Iran conflict helped reduce inflation concerns. Oil prices fell further after President Donald Trump said “great steps” had been made toward a comprehensive deal and announced the suspension of Project Freedom in the Strait of Hormuz, easing fears of prolonged supply disruptions. Despite this relief, inflation risks at home remain elevated. The inflation rate edged up to 3.1% in March from 3.0% in February and is expected to rise further as higher energy prices and fertiliser shortages feed through to costs. The South African Reserve Bank has highlighted uncertainty around the near‑term policy outlook but reiterated its firm commitment to the 3% inflation target. Governor Lesetja Kganyago said the bank stands ready to act to prevent second‑round effects from emerging price pressures, keeping the possibility of a rate hike on the table.

Global Economy:

Eurozone producer prices rose 3.4% month-over-month in March 2026, reversing February’s 0.6% decline and slightly exceeding market expectations of 3.3%.

The S&P Global UK Services PMI was revised slightly higher to 52.7 in April 2026 from a flash estimate of 52, up from March’s 11-month low of 50.5.

The S&P Global UK Composite PMI rose to 52.6 in April of 2026 from 50.3 in the previous month, revised higher from the preliminary estimate of 52 and well above the initial market expectations of 49.8.

The S&P Global Eurozone Composite PMI fell to 48.8 in April of 2026 from 50.7 in the previous month, revised marginally higher from the preliminary estimate of 48.6 but remaining firmly below the initial market expectations of 50.2.

The S&P Global Eurozone Services PMI was revised up slightly to 47.6 in April 2026 from 47.4, but still fell from 50.2 in March, marking its first move into contraction in nearly a year and the sharpest decline in activity since February 2021.

US private payrolls rose by 109 000 in April 2026, beating forecasts. Services added 94 000 jobs and goods producers 15 000, led by construction. Small firms added 65 000 jobs, large 42 000, and medium

2 000, consistent with a “low-hire, low-fire” labor market.

Global Company:

The FTSE 100 closed 2.1% higher at 10 438, supported by gains in banking and mining stocks as optimism increased over a potential US–Iran deal to end the war, following signals of progress from President Donald Trump. Mining shares rose alongside higher metal prices, while other cyclical sectors such as banks and defence also moved higher. Among individual stocks, Diageo jumped more than 6.3% after reporting a 0.3% rise in third‑quarter net sales, driven by growth in Europe, Latin America, and Africa, beating expectations for a decline. Next gained 4.4% despite warning that the Middle East conflict could reduce full‑year profits by £47 million. On the downside, oil majors retreated as easing geopolitical tensions pushed crude prices lower for a second day, with Shell falling 3% and BP down 3.7%. Smith & Nephew also slipped about 3.6% after reporting results that met expectations.

The Hang Seng Index is trading 1.36% higher at 26 570. The Hang Seng Tech Index gained 2.4%.

Tech stocks led the market higher, with Alibaba Group Holding climbing nearly 4% and Baidu rising almost 5%. In contrast, oil producers weakened as crude prices pulled back, with PetroChina down more than 3% and CNOOC falling over 2%. Overall sentiment improved after US President Donald Trump expressed optimism about developments in the Iran conflict, easing concerns about potential energy supply disruptions and reducing inflation worries.

In China, the Shanghai Composite is up 0.24% at 4 170.

The Dow Jones Industrial Average closed 1.23% higher at 49 910, while the S&P 500 closed 1.44% higher at  7 365.

US equity markets rallied to fresh record highs, lifted by growing optimism around a potential US–Iran peace deal and strong semiconductor earnings. The rally was led by chipmakers. Advanced Micro Devices soared 19% after delivering impressive quarterly results, and Super Micro Computer surged 24.5%. Disney gained 7.5% after beating earnings expectations, driven by strong performance in streaming and theme parks despite ongoing geopolitical uncertainty.

After the close, trading was mixed. Arm Holdings fell 6.4%, even after raising its sales forecast on booming AI data‑centre demand, as executives warned supply constraints could limit its ability to meet demand for a new chip. Coherent slid 7.15% despite beating earnings estimates and posting improved margins, as investors focused on forward‑looking concerns rather than recent performance.

Commodities:

Gold is trading higher by 1.25% at $4 705/oz, while Platinum is higher by 1.79% to $2 059/oz.

Brent crude was 6.72% lower at $101.75 a barrel.

Currency:

The rand traded at R16.38 against the US Dollar, R22.28 against British Pound and R19.26 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.1753.

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