Traders Corner

on . Posted in Uncategorised

  • US stocks rose, with the S&P500 rebounding following its longest losing streak of the year, and commodities advanced after jobless claims unexpectedly decreased. Treasuries fell.
  • Japanese stocks swung between gains and losses as utilities advanced while shippers retreated. Tokyo Electric Power Co. led the Nikkei 225 Stock Average higher.
  • Most Hong Kong stocks rose, with the benchmark index heading for its biggest monthly advance in a year, after China’s industrial profits climbed and U.S. jobless claims unexpectedly dropped.
  • China’s benchmark stock index swung between gains and losses, heading for a third straight monthly gain, as gains by drug makers and technology companies countered declines in companies linked to the Shanghai free-trade zone.
  • Gold(1325) unchanged and the rand(9.98),3 cents stronger from the local close.
  • Major economic data today:

-          14:30: Personal income & spending - US

-          15:55: University of Michigan confidence - US

  • The local market should open lower -0.15% on profit taking after good gains during the week.

Tradewise Report

on . Posted in Investment general

The Nikkei Index broke a three-day decline on Thursday, supported by media reports that the Japanese government may slash corporate taxes, while investors also speculated that a large state pension fund could increase its exposure to stocks.

Shares on mainland China dropped to a two-week low on Thursday, with investors taking their profits ahead of the September quarter end, which in turn dragged the Hang Seng Index lower in the process.

According to Reuters, major European stocks are expected to open relatively unchanged on Thursday, with investors keeping an eye on the budget impasse in Washington, as well as a possible battle over extending the U.S. debt ceiling.

Reuters reports that U.S. markets ended in the red on Wednesday as investors remained nervous over funding for the federal government, while Wal-Mart shares were initially the biggest drag on the Dow and S & P 500 after an inaccurate report that said that the world’s largest retailer was cutting back on its orders to its suppliers for the next two quarters.

Business Day reports that the JSE reached another record high yesterday, as the local bourse played catch-up after Tuesday’s public holiday, with banking, financial and industrial shares seeing strong demand.

The Rand is trading lower at R9.9666 against the Dollar, while it is firmer at R13.4892 against the Euro, but weaker at R16.0118 to the Pound.

The gold price moved in a narrow trading range in Singapore on Thursday as an upcoming Chinese holiday next week helped investors to move to the side lines, while they still kept their focus on the U.S. debt ceiling talks. Gold was last trading at $1 331.46, with the platinum price quoted at $1 421.75, while the palladium price was at $720.65.

Brent crude oil was last trading slightly lower at $108.28 a barrel.

Traders Corner

on . Posted in News Flash

  • US stocks fell, giving the S&P500 Index its longest slump this year, as Wal- Mart Stores Inc. retreated and concern grew that a political showdown over government spending poses a threat to growth.
  • Japanese stocks rose on speculation the world’s biggest pension fund will be advised to buy more shares and on a report that  Japan may seek to cut corporate taxes. Stocks had fallen earlier as companies went ex-dividend.
  • Hong Kong stocks fell, with the benchmark index paring its biggest monthly advance in a year, ahead of China’s seven-day holiday next week. Li & Fung Ltd. led losses on the Hang Seng Index. The retail supplier sank 3.9% after Wal-Mart Stores cut orders to address swelling inventory.
  • Gold ($1331) unchanged and the Rand (R9.95), 2 cents weaker from the local close.
  • Major economic data today:

-          10:30: GDP - UK

-          11:30: PPI - SA

-          14:30: GDP & jobless claims - US

  • The local market should open sideways to higher +0.1% on stronger US futures.

Mid-week snapshot

on . Posted in Investment general

  • The JSE ended slightly lower on Monday 23rd September, dragged down by gold mining and resources shares, after Morgan Stanley lowered its expectations for the gold price last week and low trading volumes ahead of Heritage Day.
  • In terms of the SA economic outlook, the SARB’s 2014 CPI inflation forecast was revised higher by 0.3% to 5.8%.
  • Motor trade sales increased by 13.2% for the year on year in July 2013 measured on nominal terms.
    • Seasonally adjusted motor trade sales increased by 5.1% in July 2013 compared with June 2013.
  • Measured in nominal terms, wholesale trade sales increased by 14.8% in July 2013 compared with July 2012 with main contributors from:
    • solid, liquid and gaseous fuels and related products (16.1% and contributing 3.7 percentage points)
    • food, beverages and tobacco (12.6% and contributing 1.8 percentage points)
    • `Other` goods (16.1% and contributing 1.7 percentage points).
  • The rand was slightly firmer against the Dollar Today, 25th September, however, the market will be keeping a close eye on US economic data due to be released this week with signs of strengthening likely to raise expectations that the Federal Reserve will begin scaling back on its bond-buying programme.
  • Capitec Bank’s pioneering CEO and one of its founders, Riaan Stassen, has decided to retire as CEO of the retail bank at the end of December 2013.
    • He will continue to serve on the Board of Capitec and its wholly-owned banking subsidiary Capitec Bank as a non-executive director after his retirement.
    • Riaan Stassen will be succeeded by Gerrie Fourie as CEO as of 1 January 2014

Remgro Ltd - Audited consolidated results for the year ended 30 June 2013

  • Headline earnings per share decreased by 14.1% to 854.3 cents
  • However, excluding the effect of the once-off items relating to Medi clinic's refinancing transaction referred to earlier, headline earnings increased by 11.5%.
  • Remgro’s intrinsic net asset value per share increased by 34.2% to R204.83 at 30 June 2013
  • A final gross dividend of 201 cents per share has been declared which is a 10.2% increase from 2012.

Capitec Bank - Unaudited Financial Results For The Six Months Ended 31 August 2013

  • Headline earnings up 39% to R971m
  • Headline Earnings per share up 20% to 844 cents
  • Interim dividend per share up 20% to 203 cents

Forthcoming dividends:

  • Brit American Tobacco – LDT, 16 August (Pay Date, 30 September)
    • Paying R6.75
  • BHP Billiton – LDT, 30th August (Pay Date, 25th September)
    • Paying R5.10
  • 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