In this edition of Lens on Markets, we look at how, Rivian Automotive shares fell in extended trading after the electric-vehicle manufacturer announced plans to sell 75 million shares
Market Commentary
South African Market Summary
South African equities ended softer yesterday, with the JSE All Share and Top 40 indices both declining 0.31% to 111,164.03 and 102,791.19 points respectively, as investors faced a relatively quiet domestic data week. Attention now turns to June foreign reserves data and May manufacturing output for further signals on external resilience and industrial momentum. Corporate and infrastructure developments remained in focus after Chery opened its Rosslyn manufacturing plant, strengthening South Africa’s position as an automotive production and export hub. Meanwhile, Moody’s positive outlook on Johannesburg’s Ba3 rating offers a potential upgrade path, although governance, funding pressures and unpaid utility bills remain concerns. Rising corporate renewable-energy investment also continues to reshape the domestic power landscape.
European Market Summary
European equities eased after a strong rally, with the STOXX 600 slipping 0.35% to 650.5 points after touching a record intraday high of 654.44 points. The pullback reflected profit-taking following the index’s strongest weekly performance since mid-May, although underlying macro signals remained broadly supportive. Germany’s DAX outperformed, rising 0.15% to a fresh record high and extending its winning streak to five sessions, helped by stronger-than-expected industrial orders in May. Eurozone retail sales rose 1.6% year on year, in line with expectations. Corporate activity also supported sentiment, with easyJet gaining 9.28% after agreeing in principle to Castlelake’s improved £5.5 billion take-private proposal. J.P. Morgan’s upgrade of Greece to overweight added further regional interest.
US Market Summary
US equities advanced strongly on Monday, with the S&P 500 and Nasdaq supported by renewed appetite for artificial-intelligence-linked shares ahead of second-quarter earnings season. Broadcom rose 3.7% after extending its custom-chip supply agreement with Apple through 2031, reinforcing investor confidence in semiconductor demand. Microsoft slipped almost 1% after announcing plans to cut around 4,800 jobs, equal to 2.1% of its workforce. Economic data remained broadly consistent with resilient services activity, as the ISM non-manufacturing PMI eased to 54.0, in line with expectations. Investors are looking for aggregate S&P 500 earnings growth of 24%, with technology profits expected to rise about 65%. Focus now turns to Federal Reserve minutes and the July policy outlook.
Asian Market Summary
Asian equities drifted lower on Tuesday despite a major earnings signal from Samsung Electronics, which forecast a 19-fold increase in second-quarter operating profit, underscoring continued strength in AI-linked memory demand. Sentiment was tempered by broader profit-taking and regional uncertainty, while Tencent Mobility raised about US$1.5 billion through the sale of Kuaishou Technology shares at HK$43.25 each, highlighting ongoing portfolio optimisation among Chinese technology groups. In Japan, real wages rose 1.4% year on year in May, marking a fifth consecutive monthly increase, although slower nominal wage growth and renewed inflation pressure may complicate the Bank of Japan’s policy outlook. Geopolitical attention also remained on the Pacific after Australia and the Solomon Islands advanced talks on a broader bilateral treaty.
Currency Market Summary
Currency markets were subdued at the start of the week as investors awaited the Federal Reserve’s June meeting minutes for clearer guidance on the US interest-rate outlook. The South African rand traded broadly flat against the dollar, reflecting limited domestic catalysts and a cautious global risk backdrop. Sterling softened after a seven-day rally, as the dollar recovered some ground following last week’s selloff triggered by weaker-than-expected US jobs data. The yen remained under pressure, trading beyond 162 per dollar and near its weakest level against sterling since 2007, although intervention risk from Japanese authorities limited further losses. More broadly, the dollar remains vulnerable as markets scale back expectations for further US rate hikes this year.
Commodity Market Summary
Commodity markets remained sensitive to monetary policy signals and shifting supply dynamics, with gold easing on Tuesday after trading below a two-week high as investors awaited the Federal Reserve’s June meeting minutes. The minutes are expected to provide further insight into Chair Kevin Warsh’s policy framework, particularly after the Fed removed explicit references to future rate adjustments. Oil edged higher, although gains were capped as markets looked beyond Middle East tensions and focused on rising supply. The UAE lifted output above 3.8 million barrels per day in June, while OPEC+ agreed to raise August production targets by a further 188,000 barrels per day. Saudi Arabia also sharply cut Asian pricing for Arab Light crude, reinforcing demand concerns.
Domestic Company News
Oando PLC (OAO) 0.00%
Oando PLC delivered a stronger operational performance in FY2025, with the year marking its first full contribution from the NAOC Joint Venture assets and a strategic shift from acquisition-led expansion to execution, asset optimisation and balance-sheet discipline. Average production rose 32% year on year to 32,482 boepd, supported by improved uptime, enhanced asset integrity and stable output across crude oil, gas and natural gas liquids. The group reported 2P reserves of 928 MMboe, trading volumes of 25.7 MMbbl and cash generated from operations of N258.3 billion, while cash and equivalents increased to N422.9 billion. Although revenue declined to N3.2 trillion as Oando exited lower-margin PMS activities, profit after tax reached N204.8 billion, supported by impairment reversals and tax credits. Management enters 2026 with production guidance of 40,000–50,000 boepd, a seven-well development programme and continued focus on upstream growth, trading optimisation and clean-energy initiatives.
Global Company News
Samsung Electronics Company Limited (005930) +2.75%
Samsung Electronics delivered a sharp second-quarter earnings rebound, flagging a 19-fold increase in operating profit to 89.4 trillion won, ahead of consensus expectations, as the AI-led memory upcycle continued to support pricing across DRAM, NAND and high-bandwidth memory. Revenue is expected to rise 129% year on year to 171 trillion won, reflecting stronger demand and tighter supply conditions across the semiconductor market. However, the share price fell as investors questioned whether earnings momentum can be sustained, particularly given elevated expectations, bonus-related provisions and widening losses in foundry and logic chips. The key investment debate now centres on whether AI infrastructure spending can continue absorbing capacity, with data-centre delays, funding pressures and historical memory cyclicality remaining important risks.
Rivian Automotive Inc. (RIVN) +8.11%
Rivian Automotive shares fell in extended trading after the electric-vehicle manufacturer announced plans to sell 75 million shares, a move that could raise about US$1.5 billion based on Monday’s closing price. The proceeds are intended to fund equity contributions linked to its US Department of Energy loan agreement, supporting investment in the Georgia plant that will underpin production of the smaller, more affordable R2 SUV. While the capital raise introduces dilution for existing shareholders, it comes after stronger second-quarter deliveries, an upgraded annual delivery outlook and a revenue forecast of US$1.55 billion to US$1.65 billion, ahead of consensus. Investors must balance improving operational momentum against funding needs, execution risk and persistent EV-sector margin pressure.
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Research Team