In this edition of Lens on Markets, we look at how, Intel delivered second-quarter revenue of $16.13 billion.
Market Commentary
South African Market Summary
South African equities declined on Thursday, with the JSE All Share falling 1.23% to 108,335.05 and the Top 40 losing 1.26% to 100,332.24. The South African Reserve Bank unexpectedly held the repo rate at 7%, with four Monetary Policy Committee members favouring no change and two supporting a 25-basis-point increase. Although inflation reached a two-year high, analysts viewed the policy tone as less hawkish than anticipated. Reform momentum also weakened, as Business Leadership South Africa’s completion index slipped 0.6 points to 71.1 in the second quarter, although it remained 26% above the March 2024 baseline. African Rainbow Minerals approved a phased R15.2 billion Bokoni upgrade and the resumption of nickel mining at Nkomati, adding company-specific support within a risk-averse session.
European Market Summary
European markets declined on Thursday as weak corporate earnings, hawkish monetary-policy signals and elevated oil prices pressured sentiment. The STOXX 600 fell 1.3% to 638.5, marking its steepest one-day loss in more than two weeks and extending the index’s range-bound performance. Although the European Central Bank left interest rates unchanged, investors interpreted President Christine Lagarde’s remarks as leaving open the possibility of a September increase. Policymakers are also considering higher minimum reserve requirements as part of efforts to address the ECB’s financial losses. Sector weakness was led by food and beverages, which dropped 4.1%, while Nestlé slid 8%, its largest decline since 1989, despite lifting organic sales guidance and announcing a partial disposal of its water and premium beverages business.
US Market Summary
Wall Street closed lower on Thursday as renewed concern over artificial-intelligence spending and surging oil prices weighed on equities and lifted bond yields. The Nasdaq fell more than 2%, while the S&P 500 declined over 1% after Alphabet and Tesla’s second-quarter results disappointed investors. Escalating Middle East hostilities intensified supply concerns, pushing US 10-year Treasury yields to their highest level since early 2025. Defence shares outperformed, with Lockheed Martin gaining 10.5% and RTX rising 7.3% after both companies raised 2026 sales and profit guidance. The VIX ended at 18.7 after reaching 20.3 intraday. Traders nevertheless assigned a roughly 64% probability to the Federal Reserve leaving rates unchanged next week, while the semiconductor index fell 0.5% ahead of Intel’s earnings release.
Asian Market Summary
Asian equities declined on Friday as oil prices moved above $100 a barrel, intensifying concerns that the Gulf conflict could trigger an inflation shock and unsettle bond markets. Japan’s Nikkei fell more than 2%, with weakness in Alphabet reinforcing investor unease over artificial-intelligence expenditure. Japan’s core consumer inflation accelerated to 1.6% in June from 1.4% in May, matching expectations but remaining below the Bank of Japan’s 2% target for a fifth month. Analysts nevertheless expect price pressures to strengthen as higher fuel and import costs feed through. Separately, HSBC agreed to sell its Singapore life and health insurance operations to Allianz for S$2.7 billion, expecting a US$1.8 billion pre-tax gain and up to a 15-basis-point uplift to its CET1 ratio.
Commodity Market Summary
Oil prices advanced towards a weekly gain on Friday as Houthi attacks on tankers in the Red Sea intensified concerns over disruption at Bab el-Mandeb, the second-most important oil transit route after the Strait of Hormuz. Supply risks increased after Kazakhstan reduced production following attacks that halted loadings at its main Black Sea export terminal, which handles about 2% of global daily crude supply. One industry source indicated output at the country’s largest field had fallen by more than half, although the government did not quantify the reduction. Gold edged lower on Friday but remained positioned to end a two-week losing run, as Middle East tensions supported safe-haven demand despite expectations that US interest rates may remain elevated for longer.
Currency Market Summary
The rand weakened sharply on Thursday after the South African Reserve Bank unexpectedly kept its benchmark lending rate unchanged, surprising markets positioned for another increase. Currency pressure was compounded by a stronger dollar, which followed higher US Treasury yields and renewed inflation concerns. Oil moved above $100 a barrel for the first time since May after Houthi attacks on two Saudi tankers extended Middle East disruption to another major shipping route, while President Donald Trump threatened further military action against Iran and its allies. Additional US tariffs of 10% and 12.5% on goods from 60 trading partners reinforced concerns over price pressures. For investors, the combination of domestic policy surprise, dollar strength and higher oil prices increased near-term rand volatility.
Domestic Company News
Anglo American plc (AGL) +5.58%
Anglo American reported second-quarter copper production of 173,200 tonnes, unchanged year on year and 2% above the first quarter, while premium iron ore output declined 3% to 15.4 million tonnes. Strong by-product credits, favourable currency movements and cost control supported a reduction in 2026 copper unit-cost guidance to approximately 145 cents per pound from 172 cents, including lower estimates for Chile and Peru. Full-year copper production guidance remains 700,000–760,000 tonnes, with iron ore guidance maintained at 55–59 million tonnes. Portfolio restructuring also progressed through the proposed $3.875 billion steelmaking-coal disposal, the De Beers sale process and regulatory review of the nickel sale. The Teck merger remains scheduled for completion between September 2026 and March 2027, pending final Chinese anti-trust approval.
Kumba Iron Ore Limited (KIO) +0.44%
Kumba reported first-half production of 17.7 million tonnes, down 3% year on year, as weaker output from Kolomela outweighed improved performance at Sishen. Sales declined 1% to 18.6 million tonnes following Transnet’s 10-day logistics shutdown, while finished stocks fell to 7.0 million tonnes from 7.5 million tonnes at December 2025. The average realised export price was US$90 per wet metric tonne, 8% above the benchmark, supported by product quality and a recovering lump premium. Full-year production and sales guidance was maintained at 31–33 million tonnes and 35–37 million tonnes, respectively, with C1 unit-cost guidance unchanged at US$45 per wet metric tonne. Kumba also signed a 20-year solar offtake agreement expected to reduce Sishen electricity costs by about 30%.
Mr Price Group Limited (MRP) -0.91%
Mr Price reported first-quarter retail sales of R13.1 billion, up 45.3%, including newly acquired European retailer NKD from 31 March 2026. Excluding NKD, African sales increased 3.2% to R9.3 billion, outperforming the Retailers’ Liaison Committee’s 0.8% growth, while gross margin expanded by 40 basis points. Comparable-store sales were flat, with apparel, homeware and telecoms sales rising 3.4%, 0.7% and 11.2%, respectively. NKD contributed R3.8 billion and outperformed Germany’s broader apparel and value segments. Cash represented 91.1% of group sales, and both regions ended the quarter with clean inventories. Management nevertheless expects challenging trading conditions as geopolitical uncertainty, higher inflation and interest rates constrain discretionary spending, while disciplined stock management and cost control remain central to protecting margins and operating leverage.
Cashbuild Limited (CSB) -0.34%
Cashbuild reported fourth-quarter revenue growth of 6%, supported by a 5% contribution from 20 new stores, while revenue from 297 existing stores increased 1%. Comparable-store revenue rose 3% in both the quarter and full year, with group revenue also advancing 6% for FY2026. Till transactions increased 4%, although activity at existing stores declined 1%, and selling-price inflation stood at 1.5% in June. South African operations delivered 6% quarterly growth, offsetting a 14% contraction across the rest of Africa, while other segments expanded 49% following acquisitions and openings. Cashbuild ended the year with 317 stores after opening nine, closing 11, acquiring three Amper Alles outlets and disposing of its two-store Malawi operation, highlighting growth driven by expansion rather than established-store momentum.
Global Company News
Intel Corporation (INTC) -2.33%
Intel delivered second-quarter revenue of $16.13 billion, up 25.4% and ahead of the $14.42 billion consensus, while adjusted earnings of 42 cents per share doubled the 21-cent estimate. Adjusted gross margin reached 41.8%, exceeding expectations of 38.8%. Data centre and AI revenue was $6.26 billion, supported by stronger demand for CPUs used in agentic artificial-intelligence workloads, while foundry sales totalled $5.77 billion. Management guided third-quarter revenue to $15.8–$16.8 billion and adjusted earnings to 38 cents per share, both above consensus. Intel consequently raised 2026 capital expenditure guidance to $20 billion from $18 billion and committed to high-volume 14A production in 2028, signalling greater confidence in customer engagement, although higher investment requirements increase execution and funding considerations for investors over time.
Oracle Corporation (ORCL) -4.61%
Oracle Corporation secured a Pentagon enterprise software agreement worth nearly $7 billion, covering on-premises licences across the Department of Defense, US Coast Guard and intelligence community. The five-year contract includes an additional five-year option and consolidates fragmented procurement into a single arrangement. Pentagon officials expect the agreement to generate at least $441 million in taxpayer savings by reducing duplicative purchasing and standardising Oracle software access across agencies. The award strengthens Oracle’s position as a strategic technology supplier to the US government and provides meaningful contracted revenue visibility. It follows the Pentagon’s $9.69 billion enterprise software agreement with Microsoft in May, reflecting a broader shift towards centralised technology procurement intended to improve cost efficiency, interoperability and administrative control across defence organisations.
Click here for the daily moves of shares, indices and currencies.
Research Team