In this edition of Lens on Markets, Amazon is reportedly in negotiations to acquire artificial intelligence start-up Decart
Market Commentary
South African Market Summary
The JSE All Share Index gained 1.32% on Friday to close at 108,524.77 points, while the Top 40 advanced 1.37% to 100,764.32 points. Resources led the gains, with the Resources 10 rising 1.73%, followed by Industrials and Financials, which advanced 1.25% and 1.18%, respectively. In corporate developments, Mondi confirmed participation in its dividend reinvestment plans following September’s interim dividend payment, while Grand Parade Investments warned of a significant decline in annual earnings. Meanwhile, global asset manager Ninety One announced plans to support infrastructure projects aimed at revitalising Johannesburg, with CEO Hendrik du Toit highlighting the city's deteriorating services and governance challenges. The initiative comes ahead of South Africa’s municipal elections on 4 November, amid concerns over Johannesburg’s financial position and service delivery failures.
European Market Summary
European equities recovered on Friday as easing oil prices and government bond yields improved investor sentiment amid hopes of a pause in the Middle East conflict. The STOXX 600 advanced 1%, reversing its weekly decline after reaching a nearly four-month low on Thursday. Eurozone bond yields retreated from multi-decade highs, although French fiscal concerns continued to pressure sovereign debt markets. Telecommunications shares weakened following SpaceX’s acquisition of US wireless spectrum, raising concerns about increased competition. Meanwhile, Germany confirmed plans to nominate a candidate for the European Central Bank’s executive board, ahead of leadership changes next year. British Finance Minister John Healey emphasised fiscal discipline, trade continuity and economic resilience ahead of international financial meetings, highlighting ongoing concerns over geopolitical instability and its economic consequences.
US Market Summary
Wall Street closed higher on Friday, with all three major indices posting weekly gains as investors positioned ahead of third-quarter earnings and key US inflation data. The Russell 2000 underperformed, recording a weekly decline. Major banks, including JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo, are scheduled to report this week. Analysts anticipate S&P 500 earnings growth of 30.6% year-on-year, driven by energy and technology, with projected increases of 123% and 66.5%, respectively. Meanwhile, University of Michigan data showed consumer sentiment deteriorating in October, with near-term expectations reaching a record low. Apple shares declined 1.1% following reports of reduced component orders for its iPhone 18 Pro models, reflecting weaker demand amid rising memory costs and higher prices. Investors also await inflation figures for monetary policy guidance.
Asian Market Summary
Asian equity markets began Monday’s session unevenly as investors assessed geopolitical uncertainty, the approaching corporate earnings season and uncertainty surrounding potential increases in Russian energy exports. Japanese financial markets remained closed for a public holiday, reducing regional liquidity. Taiwan Semiconductor Manufacturing Company (TSMC) is expected to report a sixth consecutive quarter of record earnings, supported by sustained demand for artificial intelligence chips and advanced packaging technology. Meanwhile, global finance officials are gathering in Bangkok this week amid escalating Middle East tensions, severe energy supply disruptions and rising interest rates, which threaten already subdued global economic growth. Chinese technology group Tencent announced plans to issue senior unsecured notes denominated in US dollars and offshore yuan under its global medium-term note programme, providing prospective investors with updated corporate and financial information.
Currency Market Summary
The South African rand ended the week stronger, snapping a four-week losing streak as firmer gold prices, a subdued US dollar and lower oil prices supported the currency. Meanwhile, the dollar remained near an 18-month high in early Asian trading on Monday, with the dollar index edging lower to 102.14. Escalating Middle East tensions sustained demand for safe-haven assets, while Japanese market closures reduced regional liquidity. Investor attention now turns to Wednesday’s US consumer price index release, a key indicator ahead of the Federal Reserve’s late-October interest-rate decision. Recent US consumer sentiment data showed further deterioration in early October, reflecting growing household concerns over rising living costs linked to the Middle East conflict. Persistent inflationary pressures remain a key consideration for monetary policy expectations.
Commodity Market Summary
Gold advanced on Monday, supported by a softer US dollar and declining oil prices, as investors awaited US inflation data for guidance on Federal Reserve monetary policy. Brent crude remained above $100 per barrel despite expectations of increased Russian diesel supplies following a proposed Russia–Ukraine energy ceasefire. President Donald Trump announced additional Russian diesel exports totalling 1.5 million tonnes, although Ukraine indicated that ceasefire details remained unresolved. Middle East tensions continued to underpin energy prices following deadly Houthi attacks on Saudi infrastructure and further tanker incidents near the Strait of Hormuz. Goldman Sachs raised its December Brent forecast from $85 to $90 per barrel, citing persistent supply risks. Meanwhile, Shell, Chevron and BP worked to restore Gulf of Mexico production following Hurricane Isaias.
Domestic Company News
Mondi plc (MNP) +1.65%
Mondi confirmed the results of its Dividend Reinvestment Plans (DRIPs) following payment of its 2026 interim dividend of 9.42 euro cents per ordinary share on 25 September 2026. Shareholders on the UK main register holding 5,497,660 shares, representing 1.25% of issued share capital, elected to participate, resulting in the market purchase of 53,201 shares at an average price of £8.192 per share. On the South African branch register, shareholders holding 38,405,915 shares, equivalent to 8.7% of issued capital, participated, resulting in the purchase of 384,669 shares at an average price of R176.5727 per share. The dividend record date was 21 August 2026. Mondi operates in more than 30 countries and reported 2025 revenue of €7.7 billion and underlying EBITDA of €1.0 billion.
Grand Parade Investments Limited (GPL) 0.0%
Grand Parade Investments expects a significant decline in earnings for the financial year ended 30 June 2026, ahead of its results publication anticipated around 30 October 2026. Headline earnings per share (HEPS) are forecast between 9.42 cents and 10.96 cents, representing a decrease of 29% to 39% compared with the 15.42 cents reported in the previous financial year. Earnings per share (EPS) are expected to range between 7.12 cents and 8.56 cents, reflecting a decline of 40% to 50% from the 14.32 cents recorded in 2025. The trading statement was issued in accordance with JSE Listings Requirements governing material changes in financial performance. The company confirmed that the financial information underlying these projections has not been reviewed or reported on by its external auditor.
Orion Minerals Limited (ORN) 0.00%
Orion Minerals announced that Tembo Capital Mining Fund II has disposed of its entire shareholding after nearly a decade as a major investor. The stake was acquired by longstanding shareholder Thomas Borman and a prominent South African institution that recently became a shareholder. Tembo Capital initially invested in Orion in early 2017, supporting the acquisition and development of its South African mining projects. The disposal comes as Tembo Fund II approaches the end of its investment term and Orion nears a construction decision on the Prieska Copper Zinc Mine (PCZM). Managing Director and CEO Tony Lennox acknowledged Tembo’s contribution and welcomed the continued backing of the acquiring shareholders. The ownership transition comes at a significant stage in Orion’s development as it prepares to advance its South African base metals strategy.
Global Company News
Amazon.com Inc. (AMZN) +3.29%
Amazon is reportedly in negotiations to acquire artificial intelligence start-up Decart in a transaction valued at approximately $7 billion, according to the Wall Street Journal. Nvidia-backed Decart develops generative AI technology, including Lucy, which enables real-time video editing, and Oasis, which creates simulated environments for robotics and autonomous vehicle training. The company was valued at nearly $4 billion in May, when it raised $300 million in a funding round led by Radical Ventures, with Nvidia participating as a new investor. Anthropic previously explored a potential $6 billion acquisition in August but reportedly withdrew following due diligence. Discussions with Amazon remain ongoing, with no agreement confirmed. The proposed transaction would expand Amazon’s AI capabilities, particularly in real-time video generation and simulation technologies.
UniCredit SpA (UCG) +1.06%
UniCredit has formally sought European Union antitrust approval for its proposed takeover of German lender Commerzbank, with the European Commission setting a 16 November 2026 deadline for its preliminary decision. The Italian banking group has already secured nearly half of Commerzbank’s share capital, while the German government retains a 13.3% stake. The proposed transaction reflects growing consolidation ambitions among Italian banks and broader regulatory support for cross-border mergers aimed at creating larger European banking institutions. The Commission may approve the acquisition with or without concessions or initiate an in-depth investigation if competition concerns arise. The European Central Bank was reportedly leaning towards approving the transaction in August. The regulatory review represents a significant step towards UniCredit potentially gaining control of Commerzbank and expanding its European banking operations.
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Research Team