In this edition of Lens on Markets, we look at how, Oracle’s workforce fell 13% in fiscal 2026, with headcount declining
Market Commentary
South African Market Summary
South African equities edged higher on Monday, with the JSE All Share index rising 0.11% to 112,730.22 points and the Top 40 adding 0.16% to 104,422.19 points. Investor sentiment towards local assets improved as stagflation fears eased, supported by lower oil prices and renewed interest in mining shares. A Bank of America fund manager survey showed a net 93% of respondents saw more buying than selling opportunities, the strongest reading since 2009, while mining exposure rose to a five-year high. Inflation expectations also moderated sharply after oil prices fell 29% from May peaks. Investors now await the leading business cycle indicator and producer inflation data for further insight into domestic momentum.
European Market Summary
European equities edged higher on Monday as investors assessed US-Iran negotiations, potential progress on restoring shipping through the Strait of Hormuz and political developments in the United Kingdom. The STOXX 600 gained 0.6%, recovering after two consecutive sessions of declines. British Prime Minister Keir Starmer’s resignation opened the way for a potential orderly transition to Labour frontrunner Andy Burnham, adding a political dimension to market sentiment. European Central Bank President Christine Lagarde said the region’s inflation shock had not materially lifted longer-term price expectations, although markets still price in another rate increase this year. Technology stocks advanced, led by Infineon, while easyJet gained after Castlelake’s takeover approach. Babcock fell after a profit charge.
US Market Summary
US equities ended mixed on Monday as investors weighed US-Iran negotiations, inflation risks and renewed pressure across megacap technology shares. The S&P 500 and Nasdaq closed lower, dragged down by declines in Alphabet, Meta, Amazon and Microsoft, while the Dow advanced on strength in healthcare and industrial stocks. SpaceX fell 16.4%, its largest one-day decline, weighing heavily on the Nasdaq, although the stock remained above its US$135 IPO price. Investor scrutiny of AI infrastructure spending also intensified, raising questions about hyperscaler capital discipline after a powerful rally. Attention now turns to Micron Technology’s results and Thursday’s PCE inflation data, which could reinforce expectations of a September Federal Reserve rate hike.
Asian Market Summary
Asian markets mostly weakened on Tuesday as investors balanced firmer oil prices, shifting US-Iran developments and rising expectations of a more aggressive Federal Reserve response to inflation later this year. In Japan, economic data remained constructive, with the S&P Global flash manufacturing PMI rising to 54.9 in June from 54.5 in May, signalling continued expansion. New orders grew at their fastest pace in more than four years, partly reflecting customer stock-building amid concerns over supply disruptions and future price increases linked to the Iran war. However, cost pressures remained elevated, particularly across energy, fuel and raw materials. Services also improved, with the flash services PMI rising to 51.8, lifting the composite PMI to 52.5.
Currency Market Summary
The South African rand firmed modestly on Monday as progress in US–Iran peace talks improved broader risk appetite and supported emerging-market currencies. However, the US dollar remained well supported as investors positioned for a more hawkish Federal Reserve, with Treasury yields elevated and two-year yields near a 16-month high. The dollar index traded close to a one-year peak, reflecting expectations that US rates could remain higher for longer, or even rise again later this year. Oil prices also rebounded after recent losses, keeping inflation risks in focus. Meanwhile, the yen hovered near a four-decade low, prompting discussions between Japanese and US officials over currency volatility and potential intervention.
Commodity Market Summary
Commodity markets remained sensitive to geopolitics, logistics and interest-rate expectations. Exxaro Resources said it wants to move more manganese to port by rail rather than road after its recent asset acquisitions, aiming to reduce costs and improve operating efficiency. CEO Ben Magara said miners were working with Transnet, which is opening parts of its freight network to private investment, to lift rail capacity. In precious metals, gold prices weakened as a firmer US dollar and expectations of a potential Federal Reserve rate hike reduced the metal’s appeal. Oil prices rebounded after the previous session’s sharp decline, as investors assessed US–Iran peace talks and awaited clarity on crude flows through the Strait of Hormuz.
Domestic Company News
Standard Bank Group Limited (SBK) -2.21%
Standard Bank Group delivered a resilient performance for the five months to 31 May 2026, supported by franchise momentum, balance sheet growth and disciplined cost and credit-risk management. Income growth was driven by stronger origination in Investment Banking, increased Business and Commercial Banking disbursements, higher transactional activity and trading opportunities during volatile market conditions. This was partly offset by lower average interest rates and competitive pricing pressure in South African home loans. Credit impairment charges declined, lowering the credit loss ratio, despite higher forward-looking provisions. Insurance and Asset Management maintained strong earnings momentum, supported by improved life risk experience and asset growth. Management said 2026 guidance remains unchanged, with interim results due on 13 August 2026.
Exxaro Resources Limited (EXX) -4.50%
Exxaro expects a stronger first-half operational performance, supported by firmer commodity prices, higher coal volumes and a resilient balance sheet. For the six months to 30 June 2026, total coal production and sales volumes are projected to rise 10% and 6%, respectively, while the average API4 export coal price is expected to increase to US$105/t from US$92/t. Iron ore and manganese prices are also expected to improve year on year. Coal capital expenditure is forecast to rise 69%, reflecting sustaining capital replacement at Grootegeluk and Belfast. The group reported net cash of R6.6 billion at 31 May 2026, excluding energy debt, while safety performance improved materially, with 45 fatality-free months recorded.
Pan African Resources PLC (PAN) +2.29%
Pan African Resources has confirmed that its proposed acquisition of Emmerson Resources is now legally effective and wholly unconditional, marking a key step in the group’s Australian expansion strategy. The transaction, implemented through subsidiary Tennant Consolidated Mining Group, will result in Pan African acquiring 100% of Emmerson via an Australian Court-approved scheme of arrangement. Emmerson shareholders approved the scheme resolution on 15 June 2026, followed by approval from the Supreme Court of Western Australia on 19 June 2026. The court orders have now been lodged with the Australian Securities and Investments Commission. For investors, the deal strengthens Pan African’s geographic diversification and supports its planned Australian Stock Exchange listing, expanding access to capital and international investors.
Mantengu Limited (MTU) -3.33%
Mantengu has issued an updated trading statement, signalling a materially weaker financial performance for the year ended 28 February 2026 following further adjustments to its financial statements. The group now expects to report a basic and diluted basic loss per share of 101 cents, compared with earnings per share of 148 cents in the prior year, representing a decline of more than 100%. Headline and diluted headline loss per share are expected to widen to 90 cents, compared with a headline loss of 23 cents previously. The update points to a significant deterioration in profitability and earnings quality. The financial information remains unaudited, with full-year results expected on SENS on or about 24 June 2026.
Global Company News
Oracle Corporation (ORCL) -5.00%
Oracle’s workforce fell 13% in fiscal 2026, with headcount declining by about 21,000 employees to 141,000 as the group continued restructuring its business and integrating AI across operations. The company incurred US$1.84 billion in severance and exit costs, sharply higher than US$374 million in the prior year, reflecting management changes, product shifts, performance actions, strategic realignment and acquisitions. The reductions come as investors assess the cost of Oracle’s aggressive cloud infrastructure expansion, including major data-centre agreements with OpenAI and Meta. While these deals support Oracle’s AI growth ambitions, they require substantial funding, with the company expecting around US$70 billion in net capital expenditure and plans to raise a further US$40 billion through debt and equity.
easyJet PLC (EZJ) +2.78%
easyJet rejected Castlelake’s £4.74 billion takeover proposal, describing the offer as opportunistic and not in shareholders’ best interests. The Minneapolis-based aviation investor, which manages about US$38 billion in assets, went public after easyJet rejected two earlier proposals of £5.60 and £6.00 per share. The latest bid represents a roughly 57% premium to easyJet’s share price before Castlelake disclosed its interest on 29 May, prompting the airline’s shares to rise to their highest level in almost a year. easyJet said it remains focused on medium-term targets and growth in its holidays business, despite weaker bookings and geopolitical disruption. The approach highlights continued foreign interest in undervalued London-listed
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Research Team