Traders Corner

on . Posted in News Flash

  • US stocks has rebounded with solid gains despite a budget deadlock that kept the government partially shut down for the fourth day in a row.
  • Japanese shares fell, as the yen gained amid concern about the standoff over the US debt limit and government shutdown.
  • Hong Kong stocks fell, extending last week’s losses, as the political impasse over the US debt limit and government shutdown weighed on investor sentiment.
  • Chinese market still closed
  • Gold(1313) up $4,and the rand(10.00) unchanged from Friday’s close.
  • No major economic data today.
  • Ex-div shares: AFX,APN,CSB,CLR,DRD,DSY,FVT,FSR,HWN,KGM,RMH,RMI,SFN,SOL
  • The local market should open lower -0.2%,on lower international futures.  

Tradewise Report

on . Posted in Investment general

The Nikkei Index dropped to a one-month low on Friday as upcoming company earnings became the focus for local investors after Japanese Prime Minister Shinzo Abe's economic stimulus announced earlier this week did not give enough motivation to support the market.

Shares on the Hang Seng Index dropped lower on Friday on profit taking in the Macau casino sector, while uncertainty around Chinese policy on pricing hit the telecommunication sector.

According to Reuters, European markets are expected to open lower on Friday, following losses on Wall Street overnight as the prolonged budget deadlock in Washington fuelled investor concerns over the impact on the world's biggest economy.

Reuters reports that shares on Wall Street closed lower on Thursday as the budget stalemate between congressional Democrats and Republicans moved into a third day, with no signs of progress being made towards finding a solution around raising the federal borrowing limit.

Business Day reports that the JSE closed slightly firmer on Thursday, with the gold mining and resources shares weaker again amidst lower commodity prices, while weaker than expected US economic data, as well as the US political deadlock also weighed on market sentiment.

The Rand is trading stronger at R9.9917 against the Dollar, while it is slightly firmer at R13.6228 against the Euro, and at R16.1083 to the Pound.

The gold price is expected to close the week lower but the prolonged U.S. government shutdown, which threatens to stifle economic growth, increases the precious metal's safe-haven appeal. Gold was last trading at $1 318.30 with the platinum price quoted at $1375.00, while the palladium price was at $700.00.

Brent crude oil was last trading lower at $108.85 a barrel.

Traders Corner

on . Posted in News Flash

  • US stocks fell, with the S&P 500Index dropping the most in a month, as data showed weaker-than-forecast growth in service industries and concern grew that the political impasse could lead to a recession.
  • Japanese shares fell, as the yen held near its strongest level in a month against the dollar amid growing concern about the U.S. political impasse.
  • Hong Kong stocks fell, with the benchmark index heading for a two-week decline, amid concern the U.S. political deadlock will hinder raising the nation’s debt  limit.
  • Chinese markets still closed
  • Gold(1319) $6 higher, and the rand(10.00) 7 cents stronger from the local close.
  • No major economic today, US job report was cancelled.
  • The local market should open lower -0.25%,after US and Asian market fell overnight.

Mid-week snapshot

on . Posted in Investment general

  • The JSE ended slightly lower on Tuesday 1st October with gold mining shares again leading the downside on a weaker gold price after Fitch Ratings lowered its forecast for the precious metal in the wake of political headwinds in the US.
  • The seasonally adjusted Kagiso Purchasing Managers’ Index (PMI) declined by a significant 7.4 points to 49.1 in September, reversing the gains made since April 2013.
    • The index is now also below the PMI levels of SA’s key trading partners (i.e. China and the Eurozone).
    • The two largest weighted subcomponents of the PMI, business activity and new sales orders, are largely accounted for the decline in the PMI.
  • The trade shortfall unexpectedly widened to R19.05bn in August, the biggest gap in seven months, after a deficit of R14.21bn in July.
    • Exports fell by 7.6% from July to August while imports were down 0.1%
    • The cumulative deficit for the year now stands at R107.31bn compared with R69.91bn rand over the same period in 2012.
  • New car sales in South Africa decreased 1.5% year-on-year in September and by 3.27% month-on-month to 54 281 units.
    • Exports in September showed a decrease of 69% compared to August 2013 and a decrease of 75% compared to September of last year.
  • Much of the vast machinery of the US government ground to a halt yesterday as the US Government shutdown begun.
    • There were suggestions from leaders in both parties that the shutdown could last for weeks and grow to encompass a possible default by the Treasury if Congress fails to raise the nation's debt ceiling with others suggesting it could last a few days.

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