In this edition of Lens on Markets, we look at how,
Market Commentary
South African Market Summary
South African equities ended weaker, with the JSE All Share down 0.75% at 110,325.45 points and the Top 40 losing 0.76% to 102,013.15 points. Macro sentiment was tempered by lower reserve buffers, after SARB data showed net foreign reserves fell to US$71.34 billion in June from US$73.47 billion in May, while gross reserves declined to US$74.12 billion. Corporate activity provided a notable counterpoint, as Adnoc Distribution agreed to acquire Shell’s South African fuel-station network at a US$1 billion enterprise value, gaining 580 retail sites and related wholesale, aviation and lubricants operations. Separately, health-risk monitoring increased as South Africa prepared designated hospitals for a possible Ebola importation risk from the DRC.
European Market Summary
European equities softened on Tuesday, with the STOXX 600 closing 0.7% lower at 646.29 after reaching a record high on Monday. The retreat was driven by a global technology sell-off, while investors assessed the NATO summit for sector-level implications from higher defence spending. NATO leaders announced arms deals worth tens of billions of dollars, reinforcing expectations that European defence and industrial names may benefit from increased security budgets. Broader market direction remained constrained as investors awaited earnings-season catalysts following the recent recovery from Middle East-driven volatility. UK labour data showed an easing jobs-market downturn, led by stronger temporary hiring, while rising French borrowing costs added fiscal-risk concerns ahead of next year’s presidential election and budget negotiations.
US Market Summary
US equities weakened on Tuesday as the Nasdaq closed sharply lower, pressured by renewed selling across chipmakers and doubts over the durability of the AI-led rally. Micron Technology and broader semiconductor names came under pressure after Samsung Electronics’ strong earnings failed to meet elevated investor expectations, while reports that China’s DeepSeek is developing its own AI chip added concerns around future demand for Nvidia and Huawei-linked supply chains. SpaceX also fell nearly 7% on its first day trading as part of the Nasdaq 100. Market breadth was negative, with eight of 11 S&P 500 sectors declining, led by industrials and materials. Investors now await Federal Reserve minutes for early policy signals under Chair Kevin Warsh.
Asian Market Summary
Momenta Global made a muted Hong Kong debut, opening at HK$301 versus its HK$295.60 IPO price after raising approximately HK$5.89 billion, or US$751 million. The autonomous-driving company’s shares briefly reached HK$314.80 before trading near HK$299, pointing to cautious investor appetite despite continued interest in Chinese AI and advanced technology listings. For investment professionals, the listing is a useful sentiment marker for Hong Kong’s IPO market, particularly as a wave of lock-up expirations follows a strong first half for new issuance. Broader Asia-Pacific markets were weaker, with South Korea’s policymakers also flagging increased equity volatility linked to foreign and institutional profit-taking, portfolio rebalancing and shifting expectations around the global AI sector.
Commodity Market Summary
Gold eased to its lowest level in nearly a week on Wednesday as renewed Middle East tensions lifted oil prices and supported the US dollar, reducing appetite for non-yielding bullion. US airstrikes against Iran, following reported attacks on commercial vessels in the Strait of Hormuz, pushed crude prices nearly 2% higher and revived concerns over potential supply disruption through a critical global energy corridor. For investment professionals, the move highlights the cross-asset impact of geopolitical escalation: stronger oil prices risk adding to inflation pressure, which could keep interest rates higher for longer and undermine gold. Additional support for crude came from API data indicating another fall in US inventories, ahead of official stockpile figures.
Currency Market Summary
The rand softened in early trade on Tuesday after South African Reserve Bank data showed a decline in foreign reserves, adding pressure to domestic currency sentiment. The move coincided with broader dollar strength, as the US dollar index touched 101.210, its highest level since 2 July, supported by renewed safe-haven demand following fresh US strikes on Iran and the revocation of a licence allowing Iranian oil sales. For investment professionals, the backdrop reinforces the rand’s vulnerability to both domestic reserve dynamics and external geopolitical shocks. Elsewhere, the New Zealand dollar strengthened after the central bank raised interest rates and signalled further tightening, while the yen edged towards a 40-year low amid cautious Bank of Japan policy signals.
Domestic Company News
Anheuser-Busch InBev SA (ANH) +2.64%
AB InBev repurchased 521,054 shares between 29 June and 3 July 2026 for €37.7 million, at an average price of €72.3056 per share. Since the programme began on 3 November 2025, the group has bought back 24.5 million shares for €1.50 billion, equal to 1.21% of shares outstanding. The update highlights continued capital return execution, disciplined balance sheet deployment and useful pricing context for investment professionals.
Naspers Limited (NPN) +5.16%
Naspers bought 898,420 N ordinary shares between 29 June and 3 July 2026 under the Group’s open-ended Repurchase Programme. The shares were acquired at an average price of R821.0825, for total consideration of R737.7 million, or US$45.2 million. The update remains relevant to capital allocation, liquidity and per-share value dynamics, while the “Claim It” campaign reminder reinforces shareholder engagement and recovery of unpaid dividend entitlements.
Prosus N.V. (PRX) +4.15%
Prosus repurchased 2,218,033 ordinary N shares between 29 June and 3 July 2026 under its open-ended Repurchase Programme. The shares were bought at an average price of €37.9771, for total consideration of €84.2 million, or US$96.2 million. For investment professionals, the update signals continued capital return execution, liquidity management and support for per-share value, particularly as Prosus continues addressing its persistent holding-company discount through sustained buy-backs.
Hyprop Investments Limited (HYP) +0.48%
Hyprop announced an accelerated bookbuild to raise approximately R500 million through the issue of new ordinary shares. Proceeds will support Eastern European growth opportunities, solar and battery projects at Canal Walk and Somerset Mall, Somerset Mall’s Phase 3 extension, and the City Center one East extension in Croatia. Management said the raise supports earnings-enhancing growth while preserving balance sheet strength, with FY2026 distributable income per share growth guidance maintained at 10% to 12%.
Global Company News
Exxon Mobil Corporation (XOM) +3.85%
Exxon Mobil signalled a materially stronger second-quarter earnings profile, with profit potentially improving by about US$5 billion versus the prior quarter as higher oil prices and stronger refining margins supported performance. The company’s update provides an important read-through for the broader energy sector ahead of quarterly reporting, particularly after Middle East tensions lifted the geopolitical risk premium in crude markets. Benchmark Brent averaged US$96.68 per barrel in the April-to-June quarter, up 23% from the first quarter, with prices briefly reaching US$109.27 in April. Exxon indicated that upstream earnings could benefit by around US$1.6 billion, while refining could add approximately US$2.6 billion from timing effects as earlier hedging-related losses unwind into profitability.
Shell Plc (SHEL) +3.38%
Shell raised its second-quarter integrated gas production guidance and flagged significantly stronger gas trading, reinforcing the earnings support from heightened commodity volatility. Integrated gas output is now expected at 610,000 to 650,000 boe/d, above prior guidance of 580,000 to 640,000 boe/d, while LNG liquefaction volumes were lifted to 7.4 million to 7.8 million tonnes. The update points to improved trading performance as the US-Israeli conflict with Iran drove sharp moves across crude and European gas markets. Shell also guided for a US$1 billion to US$6 billion working-capital inflow, reversing part of the first-quarter outflow. For investment professionals, the update suggests stronger cash generation and trading resilience, despite Middle East-linked operational disruptions and realised margin pressure.
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Research Team