08/04/2021 Prosus sold 2% of its Tencent stake at HK$ 595 a 5.5% discount to the previous close, the placement range was HK$ 5.75 to HK$ 5.95 raising $ 14.7 bln, in what is believed to be the world’s second biggest Block Trade ever. The sale will reduce Prosus’s stake in Tencent to just below 29%, still making it the biggest share-holder. Prosus has committed not to sell any more shares for at least the next three years.
Asian stocks are steady and U.S. equity futures are higher after the S&P 500 notched up another record on further evidence of the Federal Reserve’s commitment to supportive policy. Locally the All Share closed down 1.33% after NPN and PRX were down 5.03 and 4.12 percent respectively after the sens announcement of the 2% Tencent sale.
Anglo American announces the demerger of its thermal coal operations in South Africa, subject to the approval of Anglo American’s shareholders on 5 May 2021. The separation will be implemented through the transfer of Anglo American’s thermal coal operations in South Africa to a new holding company, Thungela Resources Limited, the demerger of the Thungela shares to Anglo American shareholders and the primary listing of Thungela’s shares on the JSE and standard listing on the London Stock Exchange. Following completion of the proposed demerger, 100% of the issued share capital of Thungela will be held by Anglo American shareholders who will each receive one Thungela share for every ten Anglo American shares that they hold. Each Anglo American shareholder will also retain their existing shareholding in Anglo American.
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European stocks are expected to open higher this morning, tracking gains overnight in the Asia-Pacific markets following a rise in the U.S. stock futures. London’s FTSE is seen opening 21 points higher at 6,907, Germany’s DAX up 50 points at 15,235, France’s CAC 40 up 22 points at 6,154 and Italy’s FTSE MIB up 152 points at 24,575, according to IG.
Overnight in the US a late-day pop in the S&P 500 pushed it to 4,079.95, a new closing high. The Dow rose 16 points, or 0.1%, during the regular session. The tech-heavy Nasdaq dipped 0.1% even as Big Tech stocks outperformed. Amazon, Apple and Alphabet all climbed more than 1%, while Facebook jumped 2.2%. Both the Dow and S&P 500 notched record closes on Monday. Investors appeared pacified during Wednesday’s session by the Fed’s latest meeting minutes, which showed that officials plan to keep the pace of asset purchases the same for some time as the central bank works to support stable prices and maximum employment.
Stocks in Asia-Pacific mostly rose today after the S&P 500 nudged higher to a record closing high overnight. In Hong Kong the Hang Seng is up 1.14%, Tencent is just 0.24% lower at HK$ 627.50 after the 2 % Prosus block was placed at HK$ 595. The Nikkei is flat while the ASX 200 is up 1.02%. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.31%.
Gold prices steadied after early falls on Thursday, as market participants weighed the U.S. Federal Reserve’s commitment to keep interest rates low for some time against likely higher inflation. Gold is trading at $ 1743 + $ 6 or % 0.36%. Among other metals, silver fell 0.1% to $25.09 per ounce and palladium was down 0.15% to $2624. Platinum rose 0.48% to $1235.
Oil prices fell on Thursday after official figures showed a big increase in U.S. gasoline stocks, causing concerns about demand for crude weakening in the world’s biggest consumer of the resource at a time when supplies around the world are rising. Brent – 0.62% $ 62.77, WTI – 0.67% $ 59.34