Apple Challenges Nvidia in Battle for World's Most Valuable Company

Market Commentary

South African Market Summary

South African equities ended Friday weaker, with the JSE All Share declining 0.7% to 109,569.92 points and the Top 40 falling 0.75% to 101,222.47 points. Domestic fixed-income sentiment was cautious after government failed to sell any inflation-linked bonds at its weekly auction, receiving no bids for the 2038 and 2046 maturities and only limited demand for the 2058 issue. Attention now turns to June inflation data, which will provide important guidance ahead of the South African Reserve Bank’s next policy decision. Headline inflation rose to 4.5% in May, below expectations. Meanwhile, National Treasury reinstated equitable-share allocations to 42 municipalities after governance-related suspensions, although parliamentary scrutiny continues over the corrective process and broader municipal financial discipline across South Africa’s local authorities.

European Market Summary

European equities opened lower on Friday and headed for weekly losses as escalating Middle East tensions and a global technology sell-off weakened risk appetite. The technology sector fell 2.3%, leading declines, with ASML, ASMI and Soitec under pressure despite constructive industry forecasts from ASML and TSMC. Investors rotated towards previously lagging sectors, including luxury, which gained around 3% over the week. Burberry reported continued recovery in the April-to-June quarter, supported by stronger sales in the United States and China, although its shares slipped as regional conflict constrained tourist spending in Europe. Separately, the eurozone’s seasonally adjusted current account surplus widened to €25.1 billion in May, supported by higher primary income despite a narrower trade surplus, offering some underlying macroeconomic resilience.

US Market Summary

Wall Street extended its retreat on Friday as weakness in artificial-intelligence beneficiaries broadened into a wider risk-off move. Semiconductor shares led the decline, with the Philadelphia Semiconductor Index recording its steepest weekly fall in more than a year and entering bear-market territory, down 20.2% from its June peak. Communication services and consumer discretionary stocks were among the weakest sectors, while energy gained as escalating Iran-related tensions lifted crude prices. Despite the sell-off, earnings fundamentals remain supportive: 90% of the 49 S&P 500 companies reporting so far have beaten expectations, and projected second-quarter earnings growth has risen to 26.0%. Economic data were mixed, with stronger consumer sentiment offset by softer housing activity and only marginal industrial production growth during the month.

Asian Market Summary

Asian equities weakened on Monday as escalating Gulf tensions lifted oil prices, intensified inflation concerns and compounded pressure on technology-heavy markets. South Korea’s chip-focused index fell around 4.2% after declining almost 9% last week, reflecting forced unwinding of leveraged retail positions and continued scepticism towards the artificial-intelligence trade. Japan’s Nikkei was closed for a holiday after losing 6.4% during the previous week. In China, authorities moved to stabilise sentiment following a two-week rout that erased approximately 10 trillion yuan in market value. State-backed entities announced fresh equity purchases, including more than 50 billion yuan deployed through relending facilities and matching funds. Investors now face a combination of geopolitical risk, higher energy costs, fragile positioning and technology earnings across the region.

Commodity Market Summary

Gold weakened on Monday as escalating Middle East hostilities lifted oil prices and renewed inflation concerns, reinforcing expectations that US interest rates may remain restrictive. Brent crude advanced above $90 a barrel, while West Texas Intermediate rose to $84.20, extending last week’s 15.5% gain. The move followed disruption around the Strait of Hormuz, where shipping activity declined and tanker incidents heightened fears over supply security. With the waterway normally handling one-fifth of global oil trade, prolonged restrictions could sustain upward pressure on energy costs and complicate central-bank policy. For investors, the divergence between firmer crude and softer gold highlights the market’s focus on inflation risk rather than traditional safe-haven demand, while geopolitical uncertainty continues to support volatility across commodity markets.

Currency Market Summary

Currency markets entered the week cautiously as geopolitical escalation in the Middle East supported the US dollar and lifted oil prices, while investor confidence remained fragile. The South African rand weakened ahead of inflation data and the South African Reserve Bank’s policy decision, which is expected to be finely balanced. Sterling also softened on Friday, although it remained on course for a third consecutive weekly gain as UK assets benefited from expectations of centrist fiscal leadership under the incoming government. In the United States, markets assign an 85.6% probability to the Federal Reserve holding rates on 29 July, up sharply from a month earlier. However, increasingly hawkish policymaker commentary has revived debate over whether persistent inflation could require further tightening.

Domestic Company News

Valterra Platinum Limited (VAL) 0.00%

Valterra Platinum expects a substantial earnings recovery for the six months ended 30 June 2026, supported by higher sales volumes and materially stronger platinum group metal prices. Headline earnings are forecast between R18.5 billion and R22.2 billion, with HEPS rising by more than 1,388% to between 7,047 cents and 8,456 cents. Basic earnings are expected between R18.6 billion and R22.3 billion, while EPS should increase by more than 3,076% to between 7,085 cents and 8,494 cents. PGM sales volumes increased 18%, reflecting improved mined and concentrated output following prior-year flooding disruptions at Amandelbult. The dollar basket price rose 85% to $2,801 per ounce, while the rand basket price advanced 66%, materially strengthening operating leverage and cash-generative capacity during the period.

Premier Group Limited (PMR) +1.01%

Premier Group’s shareholder base has broadened following a completed accelerated bookbuild of shares previously held by Capitalworks. The transaction, conducted through RMB Morgan Stanley, was multiple times oversubscribed, signalling strong demand for the consumer staples group’s equity. Several existing shareholders participated, including majority shareholder Titan Premier Investments, which acquired an additional two million Premier shares. Following the disposal, Capitalworks’ beneficial interest declined to 0.94% of Premier’s issued ordinary share capital, effectively concluding most of its investment exposure. The strong take-up provides a positive read-through for liquidity, price discovery and investor confidence, while Titan’s increased position reinforces long-term shareholder commitment. Premier has submitted the required regulatory notification to the Takeover Regulation Panel in accordance with South African company and JSE requirements.

Argent Industrial Limited (ART) -0.61%

Argent Industrial has completed the acquisition of the Ramsden Group for £10.84 million, or approximately R238.2 million, expanding its manufacturing footprint and accelerating its United Kingdom diversification strategy. The acquired businesses manufacture new and reconditioned steel drums, supply wooden pallets and refurbish intermediate bulk containers under licensed waste-management operations. The consideration includes £2.49 million for owned properties and £8.35 million for attributable post-tax earnings, priced at a 5.5-times earnings multiple. Ramsden generated after-tax profit of £1.52 million and held net assets of £4.94 million. With no outstanding conditions precedent, the transaction became effective on 16 July 2026. The acquisition broadens Argent’s industrial portfolio, adds property-backed assets and provides an established platform for further UK growth and operational synergies over time.

Putprop Limited (PPR) 0.00%

Putprop expects to report a material earnings deterioration for the year ended 30 June 2026, primarily reflecting an anticipated downward revaluation of its investment property portfolio. The company forecasts a loss per share of between 315.34 cents and 339.20 cents, compared with earnings per share of 119.31 cents in the prior year. Headline performance is also expected to weaken, with a headline loss per share of between 5.26 cents and 17.44 cents, versus headline earnings per share of 60.86 cents previously. Management noted that the valuation process remains ongoing and is subject to auditor review and board approval, creating scope for adjustment. A revised trading statement will follow once certainty is available, ahead of results expected around 16 September 2026.

Global Company News

Apple Inc. (AAPL) +0.14%

Apple reclaimed its position as the world’s most valuable company on Friday, surpassing Nvidia as investors broadened their exposure beyond the clearest beneficiaries of artificial intelligence spending. Apple’s market capitalisation reached $4.88 trillion, narrowly ahead of Nvidia at $4.86 trillion following a 3.5% share-price decline. The milestone reflects improving confidence in Apple’s AI strategy, including its delayed Siri overhaul and the potential value embedded in device-level personal data. Leadership succession remains in focus, with Tim Cook expected to hand control to John Ternus in September. However, Apple faces execution risks around privacy, monetisation and price-led demand pressure. Nvidia retains strong structural exposure to AI infrastructure, suggesting the valuation leadership could remain fluid as sentiment shifts across technology and semiconductor markets.

Boeing Company (BA) -0.14%

Boeing expects sustained global aircraft demand, forecasting 43,625 commercial jet and freighter deliveries between 2026 and 2045, broadly unchanged from its previous outlook. The projection comprises 33,545 single-aisle aircraft, 7,715 widebodies, 930 freighters and 1,435 regional jets. Boeing anticipates passenger traffic growth slowing to 2.3% in 2026 before rebounding through 2028, while long-term annual traffic growth is projected at 4%. Industry supply constraints remain significant, with an estimated shortfall of nearly 2,000 aircraft entering 2026 and widebody shortages potentially extending into the early 2030s. Roughly half of future deliveries should replace ageing aircraft, while the remainder supports fleet expansion. Execution risks persist, particularly around certification delays, manufacturing capacity and fragile supply chains, despite structurally supportive demand drivers across global markets.

Click here for the daily moves of shares, indices and currencies.