Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
US stocks had a modest session on Friday. Indices closed slightly lower, led by a 0.55% drop in the NASDAQ and a 0.16% decline in the S&P 500. Positive corporate earnings—highlighted by strong results from retailers like Ross Stores—and upbeat business activity data provided market support. However, ongoing bond market volatility tempered gains as Treasury yields resumed their rise despite government buyback announcements. Meanwhile, gold continued to climb. Oil started to pull back following reports that around 16 million barrels passed through the Strait of Hormuz via the southern channel on Friday night. Traders now await new U.S. sanctions on Iran set to be announced today by Treasury Secretary Scott Bessent.
Tencent (700.HK)
Tencent fell 3.72% today (closing at HK$440.00, down from HK$457.00), continuing its post-earnings pullback following its Q2 2026 earnings release. The stock dropped primarily due to market concerns over its record RMB 52.8 billion quarterly AI capital expenditure, which pushed free cash flow into negative territory. This prompted major brokers to lower their target multiples and price targets on the stock. Both Naspers and Prosus opened slightly lower this morning.
Local Stocks
Datatec Ltd (DTC)
Datatec issued a major SENS announcement declaring a Special Cash Dividend of R29.00 per share, alongside a Scrip Distribution Alternative. Shareholders can elect to receive new, fully paid ordinary Datatec shares instead of the cash payout—a distribution representing over a third of the stock’s market value prior to the news. Datatec surged as high as R91.00 per share before moderating, leaving the stock up just over 7.5%.
MTN Group Ltd (MTN)
MTN announced its interim earnings today, delivering an operational beat led by a 21.3% surge in adjusted HEPS to 793c and strong core cash generation, though non-cash Irancell impairments dragged reported HEPS down 5.8%. The market reacted positively to the operational strength and the immediate launch of a R6 billion share buyback, sending the stock up as high as R203.81 intraday before settling around 1.0% higher.
Earnings & Economic Data
Pre-Market Earnings
Xpeng Inc (XPEV)
Xpeng Inc designs, manufactures, and markets Smart Electric Vehicles (EVs) featuring autonomous driving technology, in-car operating systems, and advanced driver assistance systems primarily in China.
PDD Holdings (PDD)
PDD Holdings operates multinational e-commerce platforms, including Pinduoduo in China and Temu globally, connecting consumers with merchants and manufacturers through a group-buying model.
After-Market Earnings
Gorilla Technology Group Inc (GRRR)
Gorilla Technology Group Inc provides AI-driven edge video analytics, cyber-security platforms, and smart city infrastructure solutions to enterprise and government clients.
PicS N.V. (PICS)
PicPay is a major Brazilian financial technology platform that provides digital wallet services, peer-to-peer payments, personal loans, cards, and merchant processing.
Economic Data
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