Mid-week snap shot

on . Posted in Investment general

The JSE All Share Index closed 0.40% lower on Tuesday, 19th August, as disappointing annual results from BHP Billiton and Shoprite weighed on investor sentiment.

 Mining production decreased by 5.7% for the year in June as the main contributor to the decline was from Platinum Group Metals.

 Seasonally adjusted production decreased by 1.4% in June 2014 compared with May 2014

 Mineral sales increased by 1.9% year-on-year in May 2014 as the major contributors to the 1.9% increase were coal and Nickel.

 Seasonally adjusted mineral sales at current prices decreased by 4.0% in May 2014 compared with April 2014.

 The headline CPI annual inflation rate in July 2014 was 6.3%. This rate was 0.3 of a percentage point lower than the corresponding annual rate of 6.6% in June 2014.

 Moody’s rating agency downgraded South Africa’s four major banks late on Tuesday, following the downgrade of Capitec bank over the weekend, comparing its business          model to that of African Bank and placed the banks on review for a possible further downgrade.

 The SARB has jumped to the defence of all five banks as the downgrades were premature and stating that South Africa’s banking sector remains healthy and robust.

    BHP Billiton – Results for the year ended 30 June 2014

 Underlying attributable profit increased by 10% to US$13.4 billion.

 Dividend declared of 62 US cents per share, an increase of 4%.

 By further improving productivity and reducing capital and exploration expenditure 32% to US$15.2 billion they delivered a substantial $8.1 billion increase in free cash flow.

 Plans have been made to create an independent global metals and mining company via a demerger. With a simpler portfolio, they are targeting at least another $3.5 billion of productivity-related gains by the end of the 2017 financial year.

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Forthcoming dividends

 British American Tobacco – LDT 15th August (Pay Date, 30th September)

o Paying – R7.26

 MTN Group – LDT 22nd August (Pay Date, 1st September)

o Paying – R4.45

 BHB Billiton – LDT 29th August (Pay Date, 23rd September)

o Paying - $0.62

 Naspers Ltd – LDT 12th September (Pay Date, 22nd September)

o Paying – R4.25

Tradewise Report

on . Posted in Investment general

The Nikkei average climbed higher for an eighth day on Wednesday on the back of a weaker Yen, but the advance was limited with many investors preferring to wait on the side lines ahead of the U.S. Federal Reserve's annual meeting starting tomorrow.

The market on mainland China traded slightly lower on Tuesday due to weakness in the financial and insurance sectors, while the Hang Seng Index in Hong Kong also traded flat to lower with investor preferring to be cautious ahead of earnings.

According to Reuters, European markets closed in positive territory on Tuesday, led by Danish shipping giant, Moller-Maersk, whose share price surged 5% higher after posting better-than-expected results, raised its full-year profit forecast and divulged a $1-billion share buyback plan.

Reuters reports that U.S. markets closed firmer for the second straight trading day on Tuesday on the back of strong housing data, as well as solid earnings from Dow component Home Depot helped to push the S&P 500 Index within 10 points of its all-time intraday high, while the NASDAQ Composite extended its gains to yet another 14-year high.

Business Day reports that the JSE All Share Index closed 0.40% lower on Tuesday after opening positive as disappointing annual results from global mining group BHP Billiton and retailer Shoprite weighed on investor sentiment, while global equity markets ended firmer on continued positive economic data, as well as easing of geopolitical tensions.

The Rand was last trading weaker at R10.6105 against the US Dollar, with the Euro quoted softer at R14.1712 and the British Pound at R17.7132.

The gold price reversed a two-day decline in Singapore trade on Tuesday as geopolitical tensions and fund inflows boosted the appeal of the precious metal as a safe-haven asset, but the advance was limited by strength in equities and the US Dollar. Gold was last trading at $1,300.37, with the platinum price quoted at $1,446.40, while the palladium price was last at the $890.60 level.

Brent was last trading slightly lower at $101.85 a barrel.

Traders Corner

on . Posted in News Flash

US markets gained another half a percent last night, with Asia trading only a tenth of a percent higher this morning. Tencent is trading almost 2% higher, with BHP Billiton 4% lower to catch up with its move on the local front yesterday. Moody’s has downgraded South Africa’s 4 major banks, probably being a bit sensitive after they missed the clear 2008 signs of the financial sector’s collapse. The Rand has lost a lot of ground overnight, trading at R10.67/$, with gold last at $1,295 an ounce. World futures are trading flat.

Key macro events:

•             SA: CPI Y/Y – expected: 6.4%

•             UK: BOE Minutes

•             Japan: Trade Balance

•             US: MBA Mortgage applications

•             US: FOMC minutes

 

Tradewise Report

on . Posted in Investment general

The Nikkei Index climbed over 0.8% higher to reach a two-week high on Tuesday on the back of strong U.S. housing data, while a weaker Yen supported risk appetite in the shares of exporters such as SoftBank Corp and Panasonic Corp.

The market on mainland China traded slightly lower on Tuesday due to weakness in the financial and insurance sectors, while the Hang Seng Index in Hong Kong also traded flat to lower with investor preferring to be cautious ahead of earnings.

According to Reuters, European markets are expected to open higher on Tuesday, after closing higher yesterday, reversing Friday’s losses, with investors feeling better over easing geopolitical tensions from Ukraine and Iraq.

Reuters reports that U.S. markets jumped higher on Monday, with the technology-heavy NASDAQ Composite ending at a 14-year high on the back of increasing homebuilder confidence, as well as signs that tensions between Russia and Ukraine were receding, which prompted investors to take on more risk in the equity market.

Business Day reports that the JSE All Share Index ended 0.61% higher on Monday with early morning focus on Capitec Bank, after Moody’s downgraded the unsecured lender on Friday on the deteriorating local economy but investor sentiment was still bullish on the back of positive economic data out of the US which showed that the recovery in the world’s largest economy was gathering momentum.

The Rand was last trading weaker at R10.6105 against the US Dollar, with the Euro quoted softer at R14.1712 and the British Pound at R17.7132.

The gold price reversed a two-day decline in Singapore trade on Tuesday as geopolitical tensions and fund inflows boosted the appeal of the precious metal as a safe-haven asset, but the advance was limited by strength in equities and the US Dollar. Gold was last trading at $1,300.37, with the platinum price quoted at $1,446.40, while the palladium price was last at the $890.60 level.

Brent was last trading slightly lower at $101.85 a barrel.