Tencent launches ClawBot on WeChat amid AI race and regulatory risk

Market Commentary

South African Market Summary

The JSE All Share Index declined 0.45% to 110,070.23, while the Top 40 fell 0.61% to 102,115.92, reflecting a softer end to the week. In policy developments, South Africa imposed significantly higher anti-dumping duties on structural steel imports, with tariffs of 74.98% on Chinese products and 20.32% on Thai imports. The move follows earlier provisional duties and signals a more assertive trade stance. While supportive of domestic producers, higher import costs may add to input price pressures across construction and industrial sectors.

European Market Summary

European equities declined for a third consecutive week, with the STOXX 600 falling 1.8% on Friday and 3.8% over the week, marking its longest losing streak in nearly a year. Escalating Middle East tensions have heightened inflation risks and revived expectations of further interest rate hikes. UK policymakers, including Prime Minister Keir Starmer and Bank of England Governor Andrew Bailey, are set to assess economic fallout. Markets remain on edge amid threats to regional energy infrastructure, while UBS Asset Management has initiated job cut discussions, signalling mounting pressure across the financial sector.

US Market Summary

Wall Street closed sharply lower, with the S&P 500 at a six-month low, as escalating U.S.-Israeli conflict with Iran intensified inflation concerns and reduced expectations for rate cuts. Futures now indicate a higher probability of Fed tightening by end-2026. Heightened military activity underscores ongoing geopolitical risk, while “triple witching” drove elevated trading volumes of 27.5 billion shares. Despite broader market weakness, FedEx signalled resilient global demand with an upbeat outlook, suggesting underlying economic activity remains stable even as macro and policy uncertainty increases.

Asian Market Summary

Asian equity markets declined as escalating tensions between the United States and Iran pushed U.S. bond yields to eight-month highs and triggered renewed volatility in oil prices. Investor sentiment remains fragile amid threats to regional energy infrastructure, reducing expectations of a near-term resolution to the conflict. In Australia, authorities confirmed fuel supply remains adequate despite heavy import reliance, although localised shortages have emerged due to supply chain disruptions. The developments highlight growing inflationary risks and reinforce concerns around prolonged geopolitical instability impacting global energy markets and regional growth.

Commodity Market Summary

Oil prices traded broadly flat as markets balanced escalating geopolitical threats to Middle East energy infrastructure against increased Iranian supply following temporary U.S. sanctions relief. Ongoing conflict has disrupted key facilities and constrained flows through the Strait of Hormuz, which accounts for roughly 20% of global oil and LNG trade, with estimated production losses of 7–10 million barrels per day. Meanwhile, gold declined 1.8% as a stronger U.S. dollar and rising rate expectations reduced safe-haven demand, highlighting persistent inflation and policy risks.

Currency Market Summary

The rand weakened sharply, marking a third consecutive weekly decline ahead of the South African Reserve Bank’s upcoming interest rate decision, reflecting heightened sensitivity to global risk sentiment. The US dollar is poised to rebound as escalating Middle East tensions drive safe-haven demand, despite posting its first weekly decline since the onset of the Iran conflict. Sterling softened on rising oil prices but remains on track for weekly gains amid firmer Bank of England tightening expectations, while the Australian dollar slipped alongside weaker equity market sentiment.


Local Commentary

Premier Group Limited (PMR) +4.45%

Premier expects FY2026 earnings growth of 20–30%, with EPS of 1,123–1,217 cents and HEPS of 1,131–1,226 cents, supported by volume growth, operational efficiencies and sustained capital investment. Revenue is projected to increase at a mid-single-digit rate despite ongoing grain price deflation. The Aeroton mega-bakery commissioning should further enhance scale and margins. Results exclude the pending RFG transaction. Separately, the Group repurchased 1.8 million shares (1.4% of issued capital) for approximately R323 million, reflecting proactive capital structure optimisation ahead of the transaction.

Foschini Group Limited (TFG) +2.17%

TFG reported Q4-to-date sales growth of 7.6% in Africa and 3.4% in London (GBP), while Australia remained flat, reflecting mixed regional performance. Year-to-date sales increased 5.2% in Africa and 31.0% in London (including White Stuff), but declined 1.4% in Australia. Despite stabilising gross margins, earlier pressure persists. The Group now expects both EPS and HEPS to decline by more than 20% for FY2026. Management highlights geopolitical uncertainty, cost pressures and cautious consumers, although diversification, disciplined cost management and a resilient balance sheet provide partial mitigation.

Hulamin Limited (HLM) -10.29%

Hulamin expects to report significant earnings decline for FY2025, with EPS ranging from a loss of 43 to 53 cents (FY2024: 93 cents) and headline loss per share of 26 to 32 cents. Performance was impacted by an extended plant shutdown, post-maintenance operational instability, lower rolled product volumes and quality-related losses. A stronger rand further weighed on profitability. Normalised headline earnings from continuing operations are also expected to reflect a loss. Results exclude discontinued extrusion operations, with full audited financials scheduled for release on 23 March 2026.

International Commentary

Tencent Holdings Limited (0700) -0.45%

Tencent has launched ClawBot, integrating its WeChat platform with the OpenClaw AI agent, marking a significant step in the intensifying AI agent race among Chinese technology firms. The tool enables over one billion monthly active users to execute tasks such as file transfers and email automation directly within WeChat. The move builds on Tencent’s broader AI suite rollout and follows similar initiatives from Alibaba and Baidu. While adoption is accelerating, regulatory scrutiny around data security and agent autonomy presents emerging risks to monetisation and scalability.

United Airlines Holdings Inc. (UAL) -4.46%

United Airlines plans to reduce unprofitable flying over the next two quarters as elevated jet fuel prices, driven by the Iran conflict, materially increase cost pressures. Management is preparing for oil prices potentially reaching $175 per barrel, implying a significant rise in annual fuel expenses. The airline will cut approximately five percentage points of planned capacity, focusing on weaker demand periods and routes. Despite this, robust travel demand and fare increases are supporting revenue, while disciplined capacity management is expected to sustain pricing power across the industry.

Blackstone Inc. (BX) -2.68%

Blackstone’s flagship $82 billion private credit fund (BCRED) recorded a 0.4% loss in February, its first monthly decline in over three years, reflecting growing stress in credit markets. Elevated redemptions of $3.7 billion and selective loan write-downs highlight rising liquidity pressures and weakening credit quality, particularly in software-linked exposures. Broader market sentiment has deteriorated, with banks tightening lending to the sector and peers imposing withdrawal limits. Blackstone shares have declined over 28% year-to-date, underscoring investor concern around valuation transparency and structural liquidity risks in private credit.

To read more on our Lens on Markets, click here.