SA Company News:
The Johannesburg Stock Exchange All-Share Index closed 0.47% higher at the 89 912 level.
In a trading update from Quilter PLC for the first quarter of 2025, the company reported a significant increase in net inflows and resilient performance despite market volatility. The company’s Assets under Management and Administration (AuMA) stood at £119.6 billion at the end of March 2025, a slight increase from £119.4 billion at year-end. This stability came despite adverse market movements and the strengthening of the Sterling, which offset strong net inflows. Core net inflows reached £2.28 billion, representing 8% of opening AuMA on an annualised basis, an 181% increase over the same period in 2024. The Quilter platform experienced notable growth, particularly from Independent Financial Adviser (IFA) channels, which delivered a 63% increase in gross inflows and a 272% rise in net inflows year-on-year. This helped the platform achieve record quarterly net inflows of £2.29 billion, or 11% of opening AuMA. CEO Steven Levin expressed satisfaction with the performance, citing it as a continuation of strong momentum from late 2024. However, he also acknowledged increased market volatility in the second quarter, driven by geopolitical tensions and proposed U.S. tariffs, which may pose challenges for revenue and profitability moving forward.
SA Economy:
In February 2025, the composite leading business cycle indicator declined by 0.2% month-on-month, reversing a 1% gain recorded in January. The downturn was largely attributed to decreases in seven out of the ten component time series. The most significant negative contributions came from a drop in the number of residential building plans approved and a slowdown in the six-month smooth growth rate of new passenger vehicle sales, both indicators of future economic activity. On the upside, only two components offered some support, a widening of the interest rate spread and an increase in the US-dollar denominated export commodity price index.
The International Monetary Fund (IMF) cut its growth forecast for South Africa to just 1% for this year, rising to 1.3% next year.
Global Economy:
The International Monetary Fund (IMF) cut its global growth forecast for 2025 to 2.8% from 3.3% and sees continued weakness through 2026. The IMF lowered its 2025 projections for U.S. growth to 1.8%, reflecting a cut of 0.9 percentage point from the forecast it delivered in January, warning that U.S. President Donald Trump’s trade tariffs, higher borrowing costs and increased energy prices will dent output this year.
Hong Kong’s seasonally adjusted unemployment rate came in unchanged at 3.2% for the three months ended March 2025, remaining at the highest level in two years.
Global Company:
The FTSE 100 closed 0.64% higher at 8 328, , driven by strong gains in consumer staples and food retailers like Sainsbury’s, Tesco, M&S, Unilever, and Reckitt Benckise.
The Hang Seng Index is trading 2.32% higher at 22 062. Hong Kong stocks rose amid hopes of a de-escalation in US-China trade tensions after US President Donald Trump hinted at lower tariffs on Chinese goods.
In China, the Shanghai Composite is up 0.16% at 3 305.
The Dow Jones Industrial Average closed 2.59% higher at 39 186, while the S&P 500 closed 2.45% higher at 5 287.
Tesla shares rose 5.1% despite missing analysts’ earnings estimates, with investors encouraged by Musk’s renewed focus on Tesla. Revenue came in at $19.34 billion versus estimate of $21.37 billion.
3M shares soared 8.1%. 3M reported a robust start to the year with first-quarter adjusted earnings per share reaching $1.88, a 10% increase compared to the previous year. Looking ahead, 3M reaffirmed its full-year adjusted earnings per share guidance between $7.60 and $7.90, excluding the impact of tariffs. The company plans to mitigate the tariff-related EPS headwind and has authorized a $7.5 billion share repurchase program, with expectations to execute $2 billion in share buybacks.
Commodities:
Gold is trading lower by 4.63% at $3 327/oz, while Platinum is lower by 1.25% to $961.83/oz.
Brent crude was 2.01% higher at $68.21 a barrel.
Currency:
The rand traded at R18.58 against the US Dollar, R24.72 against British Pound and R21.15 against the Euro.
The Euro is slightly weaker against the US Dollar to trade at $1.1381.
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| Market Indicators | |||||||
| Commodities $ | Cross Currencies ($) | Major Indices | |||||
| Gold | 3327.25 | -4.63% | USD/ZAR | 18.58 | Top40 | 82722.25 | 0.56% |
| Platinum | 961.83 | -1.25% | GBP/ZAR | 24.72 | Dow 30 | 39186.98 | 2.59% |
| Brent | 68.21 | 2.01% | EUR/ZAR | 21.15 | S&P 500 | 5287.76 | 2.45% |
| Copper | 4.90 | 2.45% | EUR/USD | 1.1381 | FTSE | 8275.66 | 0.64% |
| Palladium | 935.59 | -3.40% | USD/JPY | 142.09 | DAX | 21293.53 | 0.41% |
| Iron Ore | 100.00 | 1.30% | BITCOIN | 93335.32 | Shanghai | 3305.01 | 0.16% |
| Source: FACTSET | |||||||