The SEMDEX closed marginally lower today, slipping by 0.1% as GAMMA went ex-div and weakness was observed in heavyweight conglomerates.
CIEL and ENL both experienced declines of 0.3%, closing at MUR 7.68 and MUR 19.65, respectively. Additionally, hotel stock NMH ended the day in the red, losing 0.5% to settle at MUR 10.50.
Conversely, the two listed banking stocks were the sole gainers on the Official Market, with MCBG recording a slight gain of 0.1% to MUR 375.75 on 2.6k shares traded, while SBMH rose 0.2% to MUR 4.82 on 1.1m shares traded.
Turnover was low at MUR 21.9m, primarily driven by ENL and SBMH. Foreign investor activity was minimal with very low participation.
International Markets
US markets predominantly trended downward on Tuesday following remarks from Fed Chair Powell suggesting a "higher-for-longer" stance on rates. Powell stated that it will take "longer than expected" to achieve the confidence necessary to lower inflation to the central bank's 2% target, indicating a potential delay in rate cuts as well.
European markets ended Tuesday with losses as traders reacted to ongoing developments in the Middle East. Mining stocks saw a notable decline, down by 3.1%, while banks fell 2.6%.
Asian markets witnessed a widespread sell-off amid escalating geopolitical tensions. South Korea's KOSPI suffered the most significant losses in the region, plummeting 2.3%. China's CSI 300 declined 1.1% following a better-than-expected GDP announcement, with the economy expanding by 5.3% in Q1 2024 compared to analysts' forecast of 4.6%. However, accompanying March economic indicators revealed persisting weakness in domestic demand, offsetting some of the optimism.
Regional Markets
South African markets mirrored global peers, ending in the red yesterday due to escalating tensions in the Middle East and postponed rate cuts in the US, which dampened investor sentiment. Declines were widespread, with most sectors experiencing losses.
FX & Commodities
The US dollar surged to a five-month high against the euro after Fed Chair Jerome Powell's comments suggesting prolonged higher rates. Additionally, it reached its highest level against the Japanese yen since 1990, leading traders to anticipate possible intervention by Japanese authorities.