Daily Report 25 April 2026

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.37% lower at the 116 449 level.

Valterra Platinum reported a solid operational recovery in the first quarter of 2026, with metal‑in‑concentrate PGM production up 7% year‑on‑year and refined PGM output rising sharply by 78%, supported by higher mined volumes and the rescheduling of processing downtime to improve efficiency.  Safety remained a key focus, although the quarter was overshadowed by one work‑related fatality at the Mototolo Mine, prompting renewed emphasis on zero‑harm initiatives across operations.  Strong operational performance translated into PGM sales volumes increasing by 60%, while the realised basket price surged to its highest level since 2021, significantly boosting revenue momentum.  Looking ahead, Valterra reaffirmed its 2026 production and cost guidance, noting that while operating performance has stabilised, ongoing geopolitical uncertainty and input cost inflation remain key risks.

In a trading update from Mondi PLC, the company  reported that trading conditions in the first quarter of 2026 remained challenging, with underlying EBITDA of €212 million, broadly in line with the prior quarter, as higher sales volumes were offset by lower average selling prices and rising energy‑related input costs.  Volumes increased across corrugated and flexible packaging due to recent capacity expansions and the absence of maintenance shutdowns, although margins in converting operations came under pressure while Consumer Flexibles remained stable.  Heightened geopolitical tensions in the Middle East added further cost pressure through higher energy, raw material and logistics costs, prompting pricing actions that are expected to take full effect in the third quarter.  In response to the weak environment, Mondi continued to tighten cost control and optimise its footprint, announcing additional plant closures that will reduce headcount by about 450 employees while prioritising cash flow discipline.

In a production update from Impala Platinum for the period ended 31 March 2026, the group reported stable 6E production of 2.56 million ounces for the nine months, with improved mining and processing performance at key operations supporting higher refined output and reduced excess inventory. Safety performance improved materially, with total‑injury and lost‑time frequency rates down year on year, although the quarter was marred by two fatalities at Impala Rustenburg, reinforcing the group’s focus on zero harm. Gross refined and saleable production rose 5% and 6E sales volumes increased 3%, benefiting from strong processing performance and sustained demand for PGMs despite geopolitical uncertainty.  Management reaffirmed that Implats remains on track to meet its FY2026 volume, cost and capital expenditure guidance, while continuing to monitor supply‑chain risks linked to tensions in the Middle East.

SA Economy:

The value of building plans approved fell 11.2% year‑on‑year to R7,394 million in February 2026, reversing an upwardly revised 1.2% increase in January. The decline was driven mainly by a sharp drop in non‑residential building approvals (-43.6% vs +27.7% in January) and continued weakness in additions and alterations (-6.1% vs -15.5%), which more than offset the rise in residential building approvals (+8.4% vs +1%).

Global Economy:

The S&P Global Eurozone Composite PMI fell sharply to 48.6 in April 2026, down from 50.7 in March and well below expectations of 50.2. This drop signals a return to contraction in private‑sector activity and marks the weakest reading since November 2024, pointing to a notable slowdown in economic momentum across the euro area.

The Eurozone’s Manufacturing PMI climbed to 52.2 in April 2026 from 51.6 in March, surpassing expectations of 50.8.

The S&P Global UK Services PMI rose to 52 in April 2026 from 50.5 in the prior month, surpassing market forecasts of 50.

The S&P Global UK Composite PMI jumped to 52.0 in April of 2026 from 50.3 in the previous month, well above expectations of 49.8.

The S&P Global Germany Manufacturing PMI fell to 51.2 in April 2026 from 52.2 in the prior month, broadly in line with forecasts of 51.3, according to flash estimates.

Germany’s flash Services PMI fell sharply to 46.9 in April 2026 from 50.9 in March, missing expectations of 50.3.

Germany’s S&P Global Composite PMI fell to 48.3 in April 2026, down sharply from 51.9 in March and below market expectations of 51.1.

The annual inflation rate in Hong Kong rose to 1.7% in March 2026, unchanged from the previous month and still the highest reading since late May.

The S&P Global US Manufacturing PMI climbed to 54.0 in April 2026, up from 52.3 in March and surpassing market expectations of 52.5.

The S&P Global flash US Composite PMI increased to 52 in April 2026, the highest in three months, from 50.3 in March which was the lowest since August 2023.

The S&P Global flash US Composite PMI rose to 52 in April 2026 from 50.3 in March, indicating modest growth.

UK retail sales volumes rose 0.7% month-on-month in March 2026, rebounding from a revised 0.6% drop in February and exceeding expectations of a 0.2% rise.

Global Company:

The FTSE 100 closed 0.19% lower at 10 457. J Sainsbury shares fell more than 4% after the company warned that the conflict in the Middle East could hurt customer demand and profitability. RELX also declined by over 2%, despite reaffirming its outlook. The market was further weighed down by several ex‑dividend stocks, including Fresnillo, BAE Systems, and Legal & General. In contrast, London Stock Exchange Group rose about 1% after reporting strong first‑quarter revenue growth, supported by increased trading activity.

The Hang Seng Index is trading 0.25% higher at 25 912. The rebound helped steady the market after an early dip, with technology and chip stocks providing key support despite lingering concerns over Middle East tensions and their impact on global risk sentiment and energy prices. Among notable gainers, Lenovo Group rose 3.95%, Xiaomi edged up 0.2%, and Guoxia Technology surged 31.3%.

In China, the Shanghai Composite is down 0.05% at 4 091.

The Dow Jones Industrial Average closed 0.36% lower at 49 310, while the S&P 500 closed 0.42% lower at  7 108. Technology stocks led the decline, with the sector down 1.5%, dragged sharply lower by ServiceNow, which plunged 17.8% after cutting its full‑year outlook. Lockheed Martin also weighed on the market, falling 4.7% after reporting a larger‑than‑expected drop in earnings.

In contrast, after‑hours trading, Intel surged 20% after issuing a much stronger‑than‑expected revenue forecast for the June quarter. AppFolio rose 6.4% after lifting its full‑year revenue guidance, while Boyd Gaming and several other stocks also advanced in late trading.

Commodities:

Gold is trading lower by 0.43% at $4 684/oz, while Platinum is lower by 2.3% to $1 997.35/oz.

Brent crude was 2.36% higher at $105.44 a barrel.

Currency:

The rand traded at R16.64 against the US Dollar, R22.40 against British Pound and R19.44 against the Euro.

The Euro is slightly weaker against the US Dollar to trade at $1.1682.

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