Trading update : 1 December 2025

As fears of an AI bubble eased, US stocks staged a rally to kick off Thanksgiving week, led by tech stocks, and optimism over a December interest rate cut. However, not everything is looking rosy – Big Tech is raising the risk stakes, with the five major AI spenders accumulating a record $108 billion in debt in 2025 to fund their ambitions – more than triple the historical average. Consumer trends are also worrying ahead of the biggest US shopping season, with a slump in US consumer sentiment, and a “California sober” trend that could hurt alcohol beverage stocks. Closer to home, local equities saw a sharp slump, and BHP finally ended its (Anglo) American dream.

Thanks for the recovery

After fears about an AI bubble spurred a sell-off, US stocks advanced at the start of Thanksgiving week, with tech stocks continuing their recovery from the slump, led by Alphabet (GOOG-NASQ). The S&P 500 Index (VOO-NASQ) climbed 1% to start the week, further extending gains from Friday’s session. Meanwhile, the tech-heavy Nasdaq 100 Index (STXNDQ-JSE) rose 1.9%. Federal Reserve Bank of New York President John Williams helped buoy sentiment by saying he sees room for the central bank to lower interest rates again in the near term amid labour-market softness. The remarks boosted bets on a December policy easing.

Big tech debt binge

The five major spenders on AI – Amazon (AMZN-NASQ), Alphabet (GOOG-NASQ), Microsoft (MSFT-NASQ), Meta (META-NASQ) and Oracle (ORCL-NASQ) – have raised a record $108 billion in combined debt in 2025. Data compiled by Bloomberg Intelligence shows this is more than three times the average over the previous nine years.

Sentiment slide

US consumer sentiment slid to a record low, according to the latest current conditions gauge, with views of personal finances being the dimmest since 2009. Bloomberg also reports that consumers remain frustrated about high prices and weakening incomes.

“California sober” Thanksgiving

In a headwind for beverage makers like Anheuser-Busch InBev (ANH-JSE), more Americans are opting for cannabis-infused foods and drinks on Thanksgiving, such as infused seltzers, stuffing, and turkey, as regulations around cannabis have eased. According to a Bloomberg report, people who describe themselves as “California sober” are abstaining from or barely touching alcohol, but remain open to some mind-altering substances, including cannabis and psychedelic mushrooms. The shift towards cannabis use on Thanksgiving reflects a broader trend, with alcohol consumption in the US falling to its lowest level in decades, driven by health fears and rising cannabis use.

Prosus powers on 

Prosus (PRX-JSE) slid as much as 3.3% after the tech company reiterated guidance following acquisition deals for French online auto trader La Centrale and Just Eat Takeaway.com. Prosus delivered a strong first half, improving on profitability and cash flow, with accelerating momentum across all three regional ecosystems. Core headline earnings were up 13% to $4 billion, boosted by Tencent and ecommerce profitability.

SA stock slump

Local stocks slumped as a risk-off tone characterised global markets, with equities globally coming off. The All Share Index dropped as much as 3.3%, the deepest slump since early April, with precious metals miners among the biggest decliners. The Top40 Index (FNBT40-JSE) fell for a second day, dropping 2.1%. AngloGold (ANG-JSE) contributed the most to the index decline, decreasing 5%. Sibanye Stillwater (SSW-JSE) had the largest drop, falling 7.1%. A weaker rand also weighed on market sentiment.

End of the courtship

BHP Group (BHPL-TRQX) has ended its attempt to acquire Anglo American Plc (AALL-TRQX), stating it is “no longer considering a combination of the two companies” and will focus on its own portfolio. Anglo American had rejected BHP’s new approach, deciding that the proposed combination with Teck Resources Ltd was superior. BHP’s decision comes before Anglo and Teck shareholders are scheduled to vote on their planned tie-up, which would create a company worth more than $60 billion.

Cell C’s R9bn market cap

Ahead of its IPO on the JSE, Cell C was able to allocate a total of 102 million shares to selected qualifying investors, representing an aggregate amount of about R2.7 billion. Following the bookbuild process, Cell C holding company Blu Label (BLU-JSE) approved a final offer price of R26.50 per share, implying a market cap of roughly R9 billion based on a total of 340 million ordinary shares in issue.

My chemical listing

Sasol (SOL-JSE) CEO Simon Baloyi says the company could list its chemical business by 2028. A listing could happen once the company has a resilient business that can withstand any cycle, and once earnings before interest, taxes, depreciation, and amortisation (EBITA) were near the $800 million to $1 billion range. This metric has already improved to around $400 million. However, the market remains tough, and the company is focusing on reducing its net debt and streamlining the chemicals division.

Stock focus: Netcare

Netcare (NTC-JSE) rose as much as 5.4% after the hospital operator reported a 17% increase in full-year net income, and issued a final dividend per share of R0.490. The company’s digital transformation initiative has begun to bear fruit, as indicated by substantial cash savings and operational efficiencies, said Netcare CEO, Dr Richard Friedland.