Daily Report 29 April 2026

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 1.86% lower at the 114 400 level.

Kumba Iron Ore reported improved safety performance, with a materially lower injury rate and the continued fatality‑free record at both Sishen and Kolomela, reinforcing safety as a core operational priority. Production declined slightly by 2% to 8.8 Mt as Kolomela reduced output to manage stockpiles ahead of Transnet’s planned logistics shutdown, although this was partially offset by higher output at Sishen. Sales volumes increased by 3% to 9.3 Mt, supported by improved port equipment availability and stronger logistics performance at Saldanha Bay, while finished stock levels declined overall. Despite a softer iron ore market, Kumba achieved a realised FOB export price of US$93/wmt, comfortably above the benchmark, and maintained its full‑year 2026 guidance, citing secure export routes, disciplined cost management and progress on strategic projects such as the Sishen UHDMS plant and renewable energy integration.

In a trading update to shareholders from Astral Foods Limited, the group advised that it expects a very substantial improvement in financial performance for the six months ended 31 March 2026. Astral indicated that earnings per share are expected to increase by between 375% and 395%, rising to an estimated range of 2 242 to 2 336 cents per share, compared to 472 cents in the first half of the 2025 financial year. This reflects the scale of the turnaround and improved operating conditions experienced during the period. In addition, headline earnings per share are forecast to increase even more sharply, by between 450% and 470%, resulting in an expected range of 2 250 to 2 331 cents per share, compared with 409 cents in the prior comparable period. This underscores the strength of the underlying earnings performance excluding non‑trading items. The company noted that the financial information has not yet been reviewed or reported on by its auditors and confirmed that the full interim results for the six months ended 31 March 2026 are expected to be released on or about 18 May 2026.

SA Economy:

Treasury has extended temporary fuel levy relief to cushion motorists from sharp fuel price increases driven by the Middle East conflict, with the overall cost to the fiscus estimated at about R17 billion in lost revenue. Petrol will continue to benefit from a R3 per litre levy reduction until early June, while the diesel levy has been temporarily removed, before relief is halved after June 2 and fully phased out before July, after which fuel prices will fully reflect oil prices and the rand. The continuation of the relief reflects concerns about rising fuel costs feeding into inflation and weaker economic growth, despite it undermining expected revenue from fuel levies used to fund public services. The eventual withdrawal of support is expected to intensify inflationary pressures, complicating the Reserve Bank’s outlook and reducing the likelihood of near‑term interest rate cuts.

Global Economy:

Eurozone consumers’ inflation expectations rose sharply in March 2026, with median 12‑month inflation expectations jumping to 4.0%, up from 2.5% in February and the highest level since October 2023. This marked the largest monthly increase since early 2022, when the outbreak of the war in Ukraine disrupted global energy markets. The surge reflects mounting concerns over higher energy prices driven by the escalating Iran war and the continued blockade of the Strait of Hormuz, which have intensified fears of broader inflationary spill‑overs. Inflation expectations also moved higher over longer horizons. Three‑year expectations rose to 3.0% from 2.5%, while five‑year expectations edged up to 2.4% from 2.3%, signalling growing concern that elevated price pressures may persist beyond the short term.

US same-store sales rose 7.7% year-over-year in the week ended April 25, according to Johnson Redbook, with sales benefiting from an extra selling day this year compared to last year due to the timing of Easter.

Global Company:

The FTSE 100 closed 0.11% higher at 10 332. BP rose 1.1% and Shell gained 1%, with BP also reporting a better‑than‑expected quarterly profit driven by higher oil prices and strong trading results, though it stayed cautious on production. Lloyds Banking added 1.1% ahead of its earnings, while HSBC, Unilever, and British American Tobacco also helped support the index. On the downside, Taylor Wimpey fell more than 4% amid weaker housing affordability and pricing pressures, and Anglo American dropped over 2.5% despite solid copper output following a Chilean restart. Barclays slipped after announcing a £500 million share buyback.

The Hang Seng Index is trading 1.4% higher at 26 038. The rebound was driven by selective buying in heavyweight banking and technology stocks, although overall risk appetite remained cautious. Notable gainers included AIA Group (+1.5%), Tencent Holdings (+0.9%), Meituan (+2.5%), Pop Mart International (+2.4%), and Xiaomi (+0.2%), which helped support the index.

In China, the Shanghai Composite is up 0.49% at 4 098.

The Dow Jones Industrial Average closed 0.05% lower at 49 141, while the S&P 500 closed 0.49% lower at  7 138.

Large tech names were under pressure, with Nvidia down 3.4%, Amazon off 1.6%, and Tesla falling 1.4%. Companies closely linked to OpenAI also slid sharply, as CoreWeave dropped 7% and Oracle fell 7%, reflecting worries about demand for AI infrastructure.

Outside tech, General Motors bucked the trend, rallying after raising its full‑year profit outlook by $500 million, citing strong demand for pickup trucks and SUVs despite higher fuel prices.

In after‑hours trading, sentiment improved for some stocks. Starbucks jumped 5% after raising its annual forecast and reporting 6.2% growth in Q2, while Visa surged 6% after beating earnings expectations and reporting steady growth in payment volumes despite broader economic uncertainty.

Commodities:

Gold is trading lower by 1.14% at $4 600/oz, while Platinum is lower by 1.69% to $1 941.80/oz.

Brent crude was 1.88% higher at $111.50 a barrel.

UAE announced it will quit OPEC and OPEC+, as of the 1st of May saying that they will bring additional production to the market, in a gradual and measured manner, aligned with demand and market conditions.

Currency:

The rand traded at R16.56 against the US Dollar, R22.36 against British Pound and R19.37 against the Euro.

The Euro is slightly weaker against the US Dollar to trade at $1.1702.

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