Markets WRAP: Rand closes at R14.07/$

Rand closes at R14.07/$

The local unit opened at R14.06/$ on Monday morning, with trade ranging between R14.03/$ and R14.17/$  during the day's session before closing at R14.07/$.

Board changes at MMI

Sello Moloko, appointed to MMI's board on March 1, 2019 has been elected as lead independent director, the group said in a shareholder notice issued on Monday.

Kgaugelo Legoabe-Kgomari has been appointed as a non-executive director of MMI Holdings. "Kgomari has been involved with private equity and investment banking for over 15 years," the notice read.

Peter Cooper has stepped down as a member of the risk, capital and compliance committee. He will remain on the board and continue to serve on the other committees where he is appointed, MMI added.

MMI's board has appointed Gcobisa Tyusha as group company secretary with effect of July 1, 2019.

The board of MMI, together with its audit committee, has also resolved to rotate off its external auditors PricewaterhouseCoopers following the conclusion of its audit responsibilities for June 30, 2019, the group said. This is expected to be at the conclusion of the company's annual general meeting to be held on November 26, 2019.

"Shareholders will be informed of the new firm of external auditors once all regulatory approvals have been obtained. The change of external audit firm will be tabled for approval by the company’s shareholders at the company’s next annual general meeting," the notice read.

Passenger car sales contract by 3.2% in June

Passenger vehicle sales declined 3.2% year-on-year in June, compared to a 1.7% year-on-year decline reported in May.

Muted economic growth, rising administered prices and high levels of unemployment have weighed heavily on consumers' finances impacting their purchases of non-essential items, Investec economist Lara Hodes said in a market report on the latest statistics from the National  Association of Automobile Manufacturers of South Africa.

However, commercial vehicle sales grew, new light commercial vehicles increased by 1.2%.

New vehicle sales also contracted by 1.6% in June, compared to the 5.9% decline reported in May, Naamsa said in its report.

Export sales recovered in June, having lifted by 14.3% year-on-year, it had slid 7.8% year-on-year in May, Hodes noted.

"However the pace of export growth has slowed markedly after reaching readings of over 50% y/y in April 2019.

"Persistent global trade tensions continue to weigh on international trade and investment prospects and could therefore constrain South Africa's export potential going forward," Hodes added.

"Underlying demand conditions for new vehicles remain weak. In general, low business and consumer confidence, growing pressure on household disposable income and ongoing subdued economic circumstances continued to limit growth prospects," Naamsa said in its report.

"However, some vehicle segments showed signs of an improvement during the month and bodes well for an anticipated better second half of the year performance. "The upward momentum on the export side remains strong and industry vehicle production levels would continue to benefit from strong vehicle export sales," the report read.

US stocks hit record on trade truce; oil rallies

US stocks rallied to all-time highs, with semiconductor shares leading the charge after President Donald Trump agreed to ease a ban on American companies supplying Chinese tech giant Huawei.

Gold, the yen and Treasuries all retreated.

The Nasdaq 100 Index jumped 1.8%, with chipmakers from Micron Technology to Skyworks Solution surging more than 5% on speculation they'll be able to supply on their biggest customers in Huawei.

The gains put the S&P 500 Index and Dow Jones Industrial average on track to surpass all-time closing highs, as industrial and farm stocks joined the trade-fomented advance. Semiconductor shares in Asia and Europe also rallied.

JSE gains 1% as stocks surge globally

Adam Haigh and Laura Curtis, Bloomberg, and Fin24 

Stocks rallied globally on Monday after the US and China reached a truce in the trade war and agreed to resume talks toward a deal. Treasuries, gold and the yen dropped, but a series of weak factory reports from major economies took the edge off the bond retreat.

The JSE All-Share index was up 1% at 58 831.34 points at 13:30. 

Futures on all three main US equity gauges rose more than 1%. The Stoxx Europe 600 Index got an extra hand from a weakening euro, as leaders in the region negotiate to fill a series of top jobs including president of the central bank.

Every sector on the regional benchmark advanced, with energy shares among the big gainers as crude surged after the trade truce and thanks to a deal between major producers to extend output cuts. Shares in Shanghai and Japan led Asia gains, with markets in Hong Kong closed for a holiday amid further protests in the city.

Bitcoin tumbles as cryptocurrency's 2019 surge starts to waver

Adam Haigh, Bloomberg 

Bitcoin slumped on Monday, undoing some of this year’s epic rally, and amplifying a recent trend of outsized weekend moves.

The price of the largest cryptocurrency fell 9.5% since Friday to $11 056 as of 05:0 in New York, according to prices compiled by Bloomberg. It’s still up about 200% since the start of the year.

Most other large coins also dropped: Bitcoin Cash -3.9%, Dash -7.2%. Litecoin advanced 4.2%.

Optimism surrounding a potential increase in adoption of cryptocurrencies helped fuel price increases on Bitcoin at an accelerating rate last month. That took prices back to levels last seen at the start of 2018.

The slide over the weekend is at odds with recent moves higher on Saturday and Sunday: surges in weekend activity since the start of May accounted for about 40% of Bitcoin’s price gains this year, according to data compiled by Bloomberg.

Global stocks, futures surge as trade truce reverberates

Adam Haigh and Laura Curtis

Stocks rallied globally on Monday morning after the US and China reached a truce in the trade war and agreed to resume talks toward a deal.

Treasuries, gold and the yen dropped, but a series of weak factory reports from major economies took the edge off the bond retreat.

Futures on all three main US equity gauges rose more than 1%. The Stoxx Europe 600 Index got an extra hand from a weakening euro, as leaders in the region negotiate to fill a series of top jobs including president of the central bank.

Every sector on the regional benchmark advanced, with energy shares among the big gainers as crude surged after the trade truce and thanks to a deal between major producers to extend output cuts. Shares in Shanghai and Japan led Asia gains, with markets in Hong Kong closed for a holiday amid further protests in the city.

Traders are relieved in the wake of the G-20 gatherings after a deal between Presidents Xi Jinping and Donald Trump lent some hope that a damaging global trade war can still be resolved. In a reminder of the high stakes, a series of major purchasing manager readings on Monday morning showed declines, while Japan said it plans to slap export restrictions on some tech items to South Korea. U.S. factory data are also due today.

“With China-US trade tensions temporarily out of the way, focus will probably head back towards US data,” wrote strategists at DBS Group Holdings Ltd., characterizing Monday’s reaction in currency markets as “more relief than rally.” Friday’s American payrolls report will be “important to determine if May’s weakness was just a one-off,” they wrote.

Golden six months for SA stocks defy economic gloom

South African investors have been caught up in a dramatic contrast in the first half of 2019: a stumbling economy, but a stock market that raced to its best start in 12 years.

Even as the economy endured its worst contraction in a decade in the first quarter, the Johannesburg Stock Exchange’s benchmark index was charting gains that have reached 10% by the end of June. That’s largely thanks to global demand for materials and to investors seeking havens in precious metals in uncertain times.