Tradewise Report

on . Posted in Investment general

The Nikkei Index advanced to a one-week high on Thursday, gaining on the 1% rise made in the previous session, as progress in the U.S. fiscal standoff gave the market confidence, while bellwether exporters were in demand after the Japanese Yen fell against the Dollar.

Chinese markets traded lower on Thursday with shares in Hong Kong trading at their lowest level in almost a month, as a sell-off in power producers triggered by the slashing of on-grid prices of thermal electricity led investors to anticipate lower profit margins.

According to Reuters, European markets are seen opening higher on Thursday, snapping a three-day losing streak as some progress seems to have been made to end the U.S. fiscal deadlock, which could avert a possible debt non-payment next week.

Reuters reports that Wall Street rebounded on Wednesday with defensive shares such as telecoms advancing on the day, while early signs of a possible break to the political wrangling in Congress around ending the government shutdown, as well as the possibility of a short-term increase in the debt limit also boosted market sentiment.

Business Day reports that the JSE closed in the red for the fourth consecutive day on Wednesday‚with mining and industrial shares still weighing heavily on the local bourse, while the benchmark JSE All Share Index broke a critical technical support level and could lead to further downside.

The Rand is trading slightly lower at R9.9740 against the Dollar, while it is also firmer at R13.4727 against the Euro, and at R15.8737 to the Pound.

Gold has slipped to trade around $1 300 an ounce level in Singapore on Thursday, as the Dollar recovered after President Barack Obama began meetings with lawmakers to resolve the U.S. budget crisis. Gold was last trading at $1 306.13 with the platinum price quoted at $1 381.75, while the palladium price was at $702.90.

Brent crude oil was last trading slightly higher at $109.70 a barrel.

 

Traders Corner

on . Posted in News Flash

  • US stocks climbed after a two-day slump amid optimism lawmakers will reach a deal to raise the debt ceiling and speculation Janet Yellen won’t rush to withdraw stimulus when she takes over as Federal Reserve chairman.
  • Japan’s Topix index rose for a third day as the yen fell on signs U.S. lawmakers may strike a deal to raise the debt ceiling and amid optimism the dollar will strengthen after Federal Reserve minutes indicated tapering of stimulus was likely this year.
  • Hong Kong stocks fell, with the city’s benchmark index erasing gains to head for its lowest close in a month, as resources shares slid.
  • China’s stocks fell for the first time in five days, as financial companies slumped the most among industry groups on concern earnings growth will slow.
  • Gold(1308) up $7,and the rand(9.97) 2 cents stronger from the local close.
  • Major economic data today:

-          13:00: BOE rates - UK

-          13:00: Manufacturing production - SA

-          14:30: Jobless claims - US

Local market should open up +0.25%,after the US closed higher

Mid-week snapshot

on . Posted in Investment general

  • The JSE lost 1.08% to end at a four-week low on Tuesday 8th October, weighed down by mining shares after the IMF reduced its global growth forecast.
  • The International Monetary Fund (IMF) has trimmed its forecast for global economic growth to 2.9% this year, down 0.3% from Julys forecast, whilst raising the UK forecast from 0.9% to 1.4%.
  • According to the RisCura Savca South African Private Equity Performance Report, South African private equity delivered an annualised return of 21.7% over ten years, net of fees.
  • Top of Form
    • This ten-year return as at June 2013 is on par with the returns reported for the March 2013 quarter and is higher than the 17% reported in June 2012.
  • The World’s largest iron ore producer, Brazil’s Vale, announced that their production capacity would be 5-6% higher than demand by as early as 2018 as Chinese steel consumption slows and miners boost output.
  • The Rand strengthened to its best level to the dollar in 10 days yesterday at R9.9298.
    • Standard Bank analysts believe the Rand is likely to settle at R9.75 to the dollar by the end of 2013.
  • German car manufacturer, BMW, said it would not manufacture a new model in South Africa because of the strikes which had cost it millions of Rands in lost production, causing investors to grow increasingly wary of current economic policy, infrastructure and labor law conditions.

PSG Group Ltd – Trading Statement

Although the unaudited results are to be published on or about 14th October, PSG hereby advises that a reasonable degree of certainty exists that:

  • Its SOTP (sum-of-the-parts) value per share as at 4 October will be between R84 and R86.
  • Recurring headline earnings per share will show an increase of between 17.5%-21.8%
  • Headline earnings per share will be between 11.8% and 15.6% higher.
  • Attributable earnings per share will show an increase of between 38.8% and 43.4%.

Forthcoming dividends:

  • Sasol Ltd – LDT, 4th October (Pay Date,14th October)
    • Paying R13.30
  • Howden Africa Ltd – LDT, 4th October (Pay Date, 14th October)
    • Paying R0.30
  • Capitec Bank – LDT, 11th October (Pay Date, 21st October)
    • Paying R2.03
  • Remgro – LDT, 8th November (Pay Date, 18th November)
    • Paying R2.01

Tradewise Report

on . Posted in Investment general

The Nikkei Index bounced off a five-week low to trade in positive territory on Wednesday, while some exporters lost ground after the Japanese Yen hit an eight-week high against the Dollar.

The Hang Seng Index traded lower on Wednesday, on some profit taking on the outperforming technology sector with Chinese internet giant Tencent Holdings falling by 2.6% after recording a new record high on Tuesday.

According to Reuters, European markets are seen extending their recent losses on Wednesday as a lack of progress to resolve a U.S. budget impasse continues to frustrate investors, although U.S. President Barack Obama’s nomination of dovish Federal Reserve Vice Chair Janet Yellen could limit losses.

Reuters reports that U.S. futures are trading higher on Wednesday, suggesting that U.S. stocks may open firmer later in the day despite little progress being made to end political standoff in Washington that could lead to a U.S. debt default.

Business Day reports that the JSE All Share Index lost 1.08% to end at a four-week low on Tuesday, weighed down by mining shares after the IMF reduced its global growth forecast, which hurt commodity-related shares that are sensitive to global economic growth.

The Rand is trading slightly firmer at R9.9662 against the Dollar, while it is also firmer at R13.5094 against the Euro, and at R15.9749 to the Pound.

The gold price remains stuck in a tight range between $1 300 and $1 330 an ounce, where it has been trading for the past five sessions, with the saga around U.S. government shutdown and increasing fears that the deadlock could spill over to talks about raising the U.S. debt ceiling, providing some support for the precious metal. Gold was last trading at $1 317.70 with the platinum price quoted at $1 394.00, while the palladium price was at $708.40.

Brent crude oil was last trading slightly higher at $109.97 a barrel.