Trading update : 6 February 2026

In a classic tale of two halves, the global tech market is currently defined by AI-driven consolidation in the West and regulatory volatility in the East. While Elon Musk’s $1.25 trillion SpaceX/xAI merger and Palantir’s explosive US commercial growth signal a new era of industrial AI, Chinese tech giants like Tencent face bear market territory amid new tax fears.

On home soil, DIY investors have a wealth of opportunities to get their share of markets, with the rand and Pepkor just two examples of strong local resilience thanks to economic reforms and a booming fintech sector.

EM hot streak

Investors continue to pour new money into exchange-traded funds (ETFs) that track emerging market assets. According to a recent Bloomberg report, the trend extended a $42.8 billion streak over 15 consecutive weeks.

X marks the spot

Elon Musk is merging SpaceX with xAI in an all-stock deal valuing the new company at $1.25 trillion, reports Bloomberg, citing people familiar with the deal. The merger will bring together two of the largest, closely held companies in the world. SpaceX is still planning to do an IPO later this year.

A new industrial metabolism

Palantir Technologies (PLTR-NASQ) surged +7% in after-hours trade after delivering a “beat and raise” quarter. Revenue growth accelerated again, driven by a surge in US corporate AI adoption. Alex Karp, the company’s eccentric, outspoken co-founder and CEO, stated: “The demand we are seeing in the US commercial market is primal. It is not driven by hype; it is driven by the realisation that without an ontology-based operating system, LLMs are just toys.

We are no longer selling software; we are inaugurating a new industrial metabolism for our customers”

China tech’s tax tantrum

An abrupt selloff in Chinese technology shares pushed a key index to the brink of a bear market, as concerns grew about authorities slapping a tax on internet firms. Bloomberg reported that the sudden drop came as investors grew worried that the government may impose higher VAT on internet firms after a tax increase on telecommunication companies. The decline also followed recent volatility on Wall Street as doubts resurfaced about the tech sector’s high valuations and reduced expectations of US interest rate cuts. The Hang Seng Tech Index fell as much as 3.4%, briefly extending its drop to 20% from an October high, with top losers including Prosus (PRX-JSE) and Naspers (NPN-JSE)-owned Tencent Holdings Ltd. and Alibaba Group Holding Ltd. However, some are expecting a potential rebound as Chinese tech earnings and policy meetings approach.

The fairytale’s over

Walt Disney (DIS-NASQ) shares fell 7.4% as investors digest the evolving media landscape, currently characterised by rapid consolidation. Against this backdrop, Disney produced solid numbers, with the premium segment of the market remaining strong. However, merchandise sales at theme parks and value-tier hotels took the major hits. The traditional TV advertising market remains soft, which is in stark contrast to the revenue companies like Meta (META-NASQ) are generating as the social media platforms continue to hoover up market share.

Pop more Pepsi

Pepsi (PEP-NASQ) rose +5% after management announced a new approach. After 3 years of aggressively pushing inflation through to consumers, beverage company Pepsi is pivoting. Management is determined to defend volumes, announcing plans for heavy promotions across the US. This means margins will likely remain flat, and efficiency gains are needed to keep them there.

Up the creek without an ore

According to insights from BMI, a Fitch Solutions company, carried by Bloomberg, iron ore’s recent gains are “not sustainable”, and prices are set to drop on elevated port inventories, healthy mine output, and potential steel-output curbs.

Counting on copper

In a boon for copper demand, China’s grid spending hit a record last year and is set to rise steadily through 2030. Bloomberg reported that grid investment climbed 5% to 639.5 billion yuan in 2025, citing data from the China Electricity Council. The expansion to date has benefited local electric-equipment makers amid a global shortage of large transformers.

Coal consumer

In a sign that coal demand is set to stay, China fielded a record number of proposals for new coal-fired power plants last year, with proposed new and re-activated projects rising to 161 gigawatts (GW). Bloomberg writes that the country commissioned 78 GW of new coal plants last year, and started construction on another 83 GW, despite generation from fossil fuels falling amid a surge of clean energy. China is by far the world’s biggest coal user. In 2025, the amount of coal-power capacity it brought online in just one year was comparable to India’s buildup over the previous 10 years, the report found.

Digging in the DRC

Orion Critical Mineral Consortium entered into a non-binding agreement to buy a 40% stake in Glencore’s (GLNL-TRQX) interests in its Democratic Republic of Congo assets, Mutanda Mining and Kamoto Copper Company (KCC), according to Bloomberg. The transaction is expected to imply a combined enterprise value for Mumi and KCC of around $9 billion. Mumi and KCC would continue to be managed as part of the Glencore Group. Glencore and Orion CMC to look for opportunities to expand and develop Mumi and KCC.

Rand rebound

While the rand rebounded after the worst sell-off since the tariff turmoil in April, investors see the currency resuming gains that have made it one of the best performers among emerging market peers over the past year. The rand climbed as much as 1.3% against the US dollar as metals and equities clawed back losses.

The factors that supported the rally – a credible central bank, a stable governing coalition, favourable terms of trade and high real interest rates – remain in place. Moreover, the rand is undervalued at current levels, according to a survey of investors and economists, who see scope for further currency appreciation as the government’s reform program boosts economic growth, according to a Bloomberg report.

Stock focus: Pepkor

Retail giant Pepkor (PPH-JSE) delivered a strong start to 2026, with group revenue jumping nearly 13%, largely fuelled by its booming fintech services and a strategic push into credit sales, which now account for 18% of its business. While core stores like PEP and Ackermans are gaining market share, the real growth engine is currently digital, highlighted by a 25% surge in fintech revenue and the doubling of its Abacus insurance business.

A highly successful “back-to-school” period in January has kept momentum high, and with management planning to open 300 new stores this year, the company is on track for solid earnings growth. This stock currently offers a mix of stable discount retail and high-growth financial technology, though it is important to monitor the increased risk that comes with its growing reliance on customer credit.