Palantir raised its annual revenue outlook supported by demand for its data-analytics and artificial-intelligence software

Market Commentary

South African Market Summary

South African equities advanced strongly yesterday, with the JSE All Share closing 1.77% higher at 109,527.80 points and the Top 40 gaining 2.04% to 101,438.67. Economic releases showed improving manufacturing sentiment and resilient vehicle demand. October’s Absa manufacturing PMI rose to 49.6 from a revised 48.7, marking a second consecutive improvement but remaining below the expansion threshold as weak domestic demand and logistics bottlenecks constrained activity. New vehicle sales increased 10.4% year on year despite persistent household cost pressures. Ahead of Wednesday’s local elections, President Ramaphosa highlighted proposed municipal reforms, including ring-fencing electricity and water revenue for infrastructure maintenance. In corporate news, Invicta forecast a 25%–29% decline in interim headline earnings per share, with corrective measures expected to deliver their full benefits next financial year.

European Market Summary

European equities rose on Monday as hopes of progress in talks to end the US-Israeli war with Iran lowered oil prices and supported risk appetite. The STOXX 600 closed 0.42% higher at 649.44 points, near a two-month high, while Spain’s IBEX led regional gains with a 1.63% advance. Eurozone manufacturing continued to expand, although October’s PMI eased to 52.7 from 52.9 as order growth slowed and input costs increased. National readings diverged: Germany’s PMI improved to 54.2 from 53.9, whereas France’s declined to 49.5 from 50.6, indicating renewed contraction. Persistent cost pressures sustained concerns about further European Central Bank tightening. In corporate developments, HSBC announced plans to establish an artificial-intelligence and emerging-technology institute in Hong Kong during the first quarter of 2027.

US Market Summary

US equities weakened on Monday, with the S&P 500 closing lower as investors assessed corporate earnings and awaited Tuesday’s midterm elections. Oil prices and longer-dated Treasury yields declined after Iran signalled openness to peace talks, raising hopes of easing energy-driven inflation. Manufacturing activity strengthened, with October’s ISM PMI rising to 55.5 from 54.5. The prices-paid index fell to 75.2 from 77.9, although input costs remained elevated. Apple reported quarterly revenue of $114.48 billion but warned that rising memory costs would constrain holiday-quarter gross margins to 45%–46%. Palantir’s quarterly revenue increased approximately 96% to $2.31 billion, prompting higher annual guidance, while slower US commercial contract-value growth concerned investors. Control of Congress and the implications for government policy remained central to the market outlook.

Asian Market Summary

Asian equities edged lower in early trading on Tuesday as investors awaited the start of voting in the US midterm elections, while oil prices stabilised following the previous session’s sharp decline. Chinese policy developments also drew attention. The People’s Bank of China announced that banks’ foreign-exchange reserve requirement would increase to 6% from 4% on 15 November, tightening dollar liquidity in an effort to moderate yuan appreciation. Separately, China’s securities regulator pledged support for mainland companies seeking Hong Kong listings, alongside stronger cross-border supervision. A senior Chinese financial regulator also warned that concentrated investment in artificial intelligence was increasing leverage and raising funding costs for traditional industries. The developments placed currency management, access to equity financing and technology-related financial risks in focus.

Currency Market Summary

The rand strengthened on Monday as improving manufacturing sentiment and stronger vehicle sales supported domestic confidence. The dollar index traded slightly weaker at 101.76 on Tuesday after touching a one-month low, with hopes for US-Iran diplomacy weighing against demand for safety amid technology-share weakness and uncertainty surrounding the US midterms. Sterling edged up 0.05% to $1.3414 following data showing Britain’s strongest manufacturing output growth in more than two years. Central-bank decisions remained in focus, with the Reserve Bank of Australia expected to raise rates by 25 basis points to 4.85%, taking cumulative tightening this year to 125 basis points. Economists also expected the Bank of England to increase its rate to 4.0% from 3.75%, while Norway and Sweden were due to announce policy decisions this week.

Commodity Market Summary

Oil prices rose in early Asian trading on Tuesday after the Wall Street Journal reported US strikes on Iran’s Qeshm Island, renewing concerns about escalation and prolonged supply disruptions. US officials described some attacks as defensive measures to protect commercial shipping in the Strait of Hormuz. The advance followed diplomatic signals: Tehran said contacts with Washington continued after talks with Qatari mediators produced revised proposals but no breakthrough, while President Trump suggested an agreement remained possible. The conflict has sharply reduced traffic through the strait, previously carrying about one-fifth of global crude oil and natural gas supplies. Gold rose 1.84% on Monday as falling oil prices eased inflation concerns, recovering from a one-year low, before trading slightly softer this morning ahead of the US midterms.

Domestic Company News 

Invicta Holdings (IVT) -4.48%
Invicta expects lower earnings for the six months ended 30 September 2026, reflecting challenging macroeconomic conditions across its markets and weaker operational performance. Basic earnings per share are forecast at 213–227 cents, down 15%–21% from 268 cents in the corresponding period. Headline earnings per share are expected to decline 25%–29% to 189–199 cents, compared with 265 cents previously. Management has implemented measures to address the underlying issues and improve performance, although the full benefits are expected to emerge in the next financial year. It believes these initiatives will support operational improvement and a return to sustainable growth. The financial information has not been reviewed or reported on by external auditors. Interim results are expected on or about 23 November 2026.

Altron (AEL) -1.86%
Altron reported revenue growth of 5% to R5.1 billion from continuing operations for the six months ended 31 August 2026, its strongest interim increase in three years. Headline earnings per share rose 14% to 109 cents, while the interim ordinary dividend increased 15% to 55 cents per share. EBITDA advanced 16% to R1.1 billion, with the margin widening to 21.5%, and operating profit climbed 13% to R622 million. Platforms annuity revenue increased 11% to R2.2 billion, representing 92% of segment revenue, while Platforms contributed more than 95% of Group operating profit. Cash generated from continuing operations rose 32% to R1.0 billion. Closing net cash exceeded R800 million after June dividend payments of R755 million. Total operations headline earnings per share increased 24% to 108 cents.

Exemplar REITail (EXP) 0.00%
Exemplar reported revenue growth of 13.8% to R847.262 million for the six months ended 31 August 2026, while net property income before fair value adjustments increased 13.0% to R533.886 million. Basic earnings per share rose 39.1% to 175.58 cents, although headline earnings per share declined 6.9% to 68.39 cents. Net asset value per share increased 15.7% to R19.75. The retail property group declared an interim dividend of 90.58305 cents per share, up 6.7%, payable on 30 November 2026, with shares trading ex dividend from 25 November. Management reaffirmed guidance for distribution per share growth of 9%–11% for FY2027. Exemplar’s portfolio comprises 31 retail assets with combined gross lettable area of 501,606m², serving previously under-serviced regions across six South African provinces.

Redefine Properties (RDF) +1.74%
Redefine reported a 7.0% increase in distributable income per share to 56.08 cents for the year ended 31 August 2026, supporting dividend growth of 7.0% to 49.06 cents per share. Revenue rose 2.6% to R11.297 billion, while headline earnings per share increased 98.6% to 72.97 cents and basic earnings per share advanced 74.3% to 103.60 cents. The group recorded a net operating profit margin of 77.0% and held property assets of R102.1 billion. SA REIT net asset value per share increased 2.2% to 857.84 cents, measured against a recalculated comparative reflecting updated industry reporting recommendations. The SA REIT loan-to-value ratio improved to 38.8%, while undrawn committed facilities and cash totalled R7.3 billion. Dividend growth matched the increase in distributable income per share.

Global Company News

Apple (AAPL) -1.83%
Apple warned that rising memory-chip costs would pressure holiday-quarter profitability despite fiscal fourth-quarter results exceeding expectations. Revenue reached $114.48 billion, against forecasts of $113.39 billion, while earnings of $2.10 per share exceeded estimates of $1.99. iPhone sales of $57.58 billion benefited from early iPhone 18 Pro demand and higher prices. However, Apple forecast December-quarter gross margins of 45%–46%, down from 47.9%, and services growth of 8%–9%, below expectations of 10.7%. Shares fell as much as 4% during the earnings call before narrowing losses to around 2%. Purchasing commitments increased by $33 billion as Apple sought to secure supplies. Chinese revenue missed forecasts, while demand for the foldable iPhone Duo exceeded supply despite reported screen problems affecting a small proportion of units.

Palantir Technologies (PLTR) -3.13%
Palantir raised its annual revenue outlook after third-quarter revenue increased approximately 96% to $2.31 billion, exceeding analysts’ expectations of $2.18 billion. The company forecast fourth-quarter revenue of $2.649 billion–$2.653 billion, above the $2.46 billion consensus, supported by demand for its data-analytics and artificial-intelligence software. Full-year revenue guidance increased to $8.530 billion–$8.534 billion from $8.150 billion–$8.158 billion. US commercial revenue reached $984 million, surpassing US government revenue of $953 million for the first time. However, growth in US commercial total contract value slowed to 11% from more than 153% in the preceding quarter. Palantir said several large contracts had shorter durations as customers adopted sovereign AI capabilities. Its customer base totalled 1,090 over the 12 months to September, including 904 commercial clients.

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