In this edition of Lens on Markets, we look at how,
Market Commentary
South African Market Summary
South African equities strengthened on Thursday, with the JSE All Share gaining 1.3% to 111,872.70 and the Top 40 rising 1.4% to 103,758.71. Producer inflation slowed to 7.5% year-on-year in June from 7.8% in May, undershooting expectations as lower fuel and food prices eased cost pressures. National Treasury also reported a R80.13 billion budget surplus for June. Corporate developments included Woolworths forecasting modest annual profit growth despite a difficult second half, while Anglo American reported a narrower first-half loss, raised its dividend and advanced its restructuring. Separately, government appointed Seiso Mohai as PIC chair and added eight non-executive directors to address governance concerns.
European Market Summary
The FTSE 100 slipped 0.1% to 10,897.27 on Thursday, retreating from an intraday record after the Bank of England kept interest rates unchanged at 3.75%. The Monetary Policy Committee voted 6–3 to hold, with three members favouring an increase to 4.0% as policymakers assessed the inflationary impact of the US-Iran conflict. The FTSE 250 gained 0.3%, while mixed corporate results weighed on larger companies. In Germany, annual inflation accelerated to 2.8% in July as energy costs rose, although core inflation eased slightly. European second-quarter earnings growth is now forecast at 20.8%, largely driven by energy companies, with profit growth excluding the sector estimated at 10.3%.
US Market Summary
Wall Street closed sharply higher on Thursday as semiconductor shares rallied and Microsoft recorded its strongest daily percentage gain in 18 years. The technology group surged more than 15%, adding roughly US$450 billion in market value after forecasting quarterly revenue and cloud growth above expectations. Capital expenditure also came in below estimates, while management indicated that cash generation should remain resilient through the 2027 financial year. The update eased concerns over the scale and returns of artificial-intelligence investment following recent weak cash-flow reports across the sector. Meta declined after reporting a 91% drop in quarterly free cash flow. Separately, US economic growth slowed to 1.5% in the second quarter, while inflation moderated in June.
Asian Market Summary
Asian equities advanced sharply on Friday alongside Wall Street, with South Korea recording a strong rebound as investors reassessed the recent sell-off in artificial-intelligence-linked assets. The Bank of Japan kept its policy rate unchanged at 1.0% in an 8–1 decision, although one board member supported an increase to 1.25%. The central bank warned that underlying inflation could exceed its 2% target. Japanese factory output rose 1.3% in June, ahead of expectations, while manufacturers forecast further gains in July and August. In contrast, China’s factory activity unexpectedly contracted in July as weaker new orders, subdued domestic demand and higher production costs reinforced concerns that economic momentum was slowing.
Commodity Market Summary
Gold declined on Friday but remained positioned for its first monthly advance in five months, supported by bargain buying near US$4,000 an ounce and uncertainty surrounding the Middle East and US interest-rate outlook. Oil prices also eased, although crude remained on course for a monthly gain of about 20%. Increased supply flows through the Strait of Hormuz offset concerns over the continuing US-Israel conflict with Iran and limited progress in diplomatic talks. The strait remains critical to global energy markets, handling roughly one-fifth of worldwide crude oil and liquefied natural gas shipments. Saudi Arabia is meanwhile seeking support for a multinational maritime coalition covering the Bab el-Mandeb Strait, Red Sea and Gulf of Aden.
Currency Market Summary
The South African rand strengthened on Thursday as the US dollar weakened and domestic markets assessed softer-than-expected producer inflation data for further indications of the local economic outlook. The lower inflation reading supported sentiment towards the currency by reinforcing expectations that domestic price pressures remain contained. Elsewhere, the Japanese yen faced renewed selling pressure despite reported intervention by Japanese authorities in the New York session, which briefly lifted the currency from four-decade lows. Investors remained focused on the Bank of Japan’s forthcoming policy decision and its response to persistent yen weakness. The US Dollar Index recovered modestly to 100.12 after falling 0.8% previously, but remained on course for weekly and monthly declines.
Domestic Company News
Anheuser-Busch InBev SA (ANH) +0.01%
Anheuser-Busch InBev reported stronger second-quarter results, supported by improved beer demand and continued growth across its premium portfolio. Organic revenue increased 5.6%, while normalised EBITDA rose 5.8% to US$5.94 billion and the margin expanded four basis points to 35.6%. Total volumes advanced 0.9%, with beer volumes gaining 1.1%, marking a second consecutive quarter of growth. Underlying earnings per share increased 23.4% to US$1.21, while net debt to EBITDA improved to 2.86 times. Corona, Stella Artois and Michelob Ultra delivered strong international growth, although weaker Chinese volumes tempered the otherwise solid performance. Management retained its 2026 EBITDA growth outlook of between 4% and 8%.
British American Tobacco PLC (BTI) -3.54%
British American Tobacco delivered first-half results broadly in line with expectations and retained its full-year guidance. Revenue increased 1.4%, or 2.9% at constant exchange rates, supported by 8.5% growth in the United States and resilient performance across AME. New Categories revenue rose 18.0%, lifting its contribution margin by 3.3 percentage points to 13.8%, while smokeless products reached 19.8% of group revenue. Adjusted operating profit increased 3.5% and adjusted diluted earnings per share advanced 7.9%. Reported operating profit fell 15.8%, reflecting a prior-year Canadian settlement credit. Management expects 2026 adjusted earnings growth near the midpoint of its 5% to 8% range, with the £1.3 billion buyback progressing.
Anglo American PLC (AGL) +3.89%
Anglo American reported a 35% increase in underlying EBITDA to US$4.0 billion for the six months ended June 2026, supported by solid production, cost discipline and favourable copper prices. The group recorded a US$0.9 billion attributable loss after reducing the carrying value of its steelmaking-coal operations to reflect agreed disposal terms. Net debt declined to US$8.2 billion, representing one times underlying EBITDA. Strategic restructuring progressed through the proposed US$3.875 billion coal sale, advancing plans to divest De Beers and preparations for the Teck merger. Anglo American declared an interim dividend of US$0.23 per share, compared with US$0.07 previously, while headline earnings per share declined to US$0.14.
Woolworths Holdings Limited (WHL) +2.13%
Woolworths reported 4.3% growth in group turnover and concession sales for the 52 weeks ended June 2026, although second-half growth slowed to 3.3% amid weaker consumer demand, higher inflation and rising interest rates. South African sales increased 5.4%, supported by 5.7% growth in Food, while Fashion, Beauty and Home advanced 4.4% despite margin pressure from promotions and inventory clearance. Country Road Group sales rose 1.0% and returned to full-year profitability. Headline earnings per share are expected to increase by between 2.5% and 7.5%, while adjusted diluted headline earnings should rise by 1.0% to 6.0%. The group repurchased 9.7 million shares during the year.
Global Company News
Apple Inc. (AAPL) -1.41%
Apple reported stronger-than-expected fiscal third-quarter results, but shares fell after management forecast slower revenue growth for the September quarter amid component shortages. Revenue increased 16.4% to US$109.42 billion, while earnings reached US$2.02 per share. iPhone sales rose 21.7% to a third-quarter record of US$54.25 billion, and Mac revenue advanced 28.7% to US$10.35 billion. Services revenue increased 12.1% but missed expectations, while iPad sales declined 5.9%. Apple expects current-quarter revenue growth of 9% to 11%, below the 12% market forecast, with iPhone growth projected in the mid-teens. Management attributed the softer outlook primarily to constrained supplies of advanced chips rather than weaker demand.
Amazon Inc. (AMZN) +3.90%
Amazon reported its strongest cloud growth in more than four years, reinforcing confidence that substantial artificial-intelligence investment is generating demand. Amazon Web Services revenue increased 37% to US$42.2 billion, exceeding expectations, while its contract backlog expanded to US$496 billion. Management raised its 2026 capital expenditure forecast by 10% to US$220 billion as computing demand continued to exceed available capacity. Advertising revenue advanced 26% to US$19.8 billion, supported by increased commercial activity across Amazon’s retail platform and Prime Video. However, elevated infrastructure spending pushed trailing 12-month free cash flow to negative US$7.6 billion. The strong AWS performance and expanding backlog outweighed cash-flow concerns, sending the shares sharply higher after the results.
Click here for the daily moves of shares, indices and currencies.
Research Team