Tradewise Report

on . Posted in Investment general

The Nikkei Index edged lower on Wednesday on the back of a weaker performance on Wall Street overnight, but losses were pared by Tokyo Electron Ltd shares surging 13% higher on news of a possible takeover, but investor sentiment remains cautious over a possible U.S. government shutdown.

Shares on the Hang Seng Index in Hong Kong, as well as shares on mainland China traded higher on Wednesday, with investors eagerly anticipating the 29 September launch of Shanghai's free trade zone, which may see as promise of future financial reforms.

According to Reuters, European markets are seen opening steady on Wednesday amidst losses on U.S. markets overnight, while investors shift their attention to a possible U.S. government shutdown unless a resolution can be found ahead of the fiscal year on 30 September.

Reuters reports that US markets ended mostly lower on Tuesday with the Dow and S&P 500 slipping lower, but the technology-heavy NASDAQ edged higher, with the focus now shifting to Capitol Hill after a bill to fund the U.S. government met strong resistance and added to investor caution.

Business Day reports that the JSE ended slightly lower on Monday, dragged down by gold mining and resources shares, after Morgan Stanley lowered its expectations for the gold price last week Friday, while low trading volumes ahead of the Heritage Day public holiday also added to the bearish market sentiment.

The Rand has slipped lower to trade at R9.8652 against the Dollar, while it is firmer at R13.7442 against the Euro, but weaker at R15.7442 to the Pound.

The gold price has edged higher on Wednesday, but any advance was limited by uninspiring physical demand, while the persistent uncertainty over the outlook for U.S. economic stimulus also pared gains. Gold was last trading at $1 328.72, with the platinum price quoted at $1 429.50, while the palladium price was at $720.75.

Brent crude oil was last trading slightly higher at $109.26 a barrel.

Traders Corner

on . Posted in News Flash

Lower closes from US markets should keep any gains subdued today after our public holiday yesterday, with uncertainties over the US budget keeping investors on the side lines for now. The Rand remains relatively unchanged from Friday’s close, with commodities also trading around the same levels. Futures are pointing to a flattish open.

Key macro events:

  • SA: BER Consumer Confidence
  • US: MBA Mortgage Applications
  • US: Durable Goods Orders
  • US: New Home Sales

Trader's Corner

on . Posted in Investment general

US stocks rose, as diminishing concern over a military strike against Syria offset Apple Inc.’s biggest decline since April.

  • Japan’s Topix index fell as tire makers and brokerages led declines and investors await next week’s Federal Reserve meeting.
  • China’s stocks rose for a fifth day, as banks and brokerages rallied on Premier Li Keqiang’s financial reform plans.
  • Most Hong Kong stocks climbed as banks raised forecasts for China’s growth, with the benchmark Hang Seng Index trading near 23,000, the highest since May.
  • Gold(1357) down $5 and the rand(9.88) 2 cents stronger from the local close.
  • Major economic data:
     14:30: Jobless claims – US
  • The local market should open sideways to up +0.1% after the pullback yesterday, and as US and UK futures trade higher.

Mid-week snapshot

on . Posted in News Flash

The JSE surged to a fresh record high on Tuesday 11th September, with strong performances from the platinum mining and industrial shares on the back of better-than-expected retail and industrial Chinese data

  • The rand reached its strongest point against the dollar on Monday 9th September since August 15th reaching 9.961 per dollar, boosted by an end to strikes in the gold sector and motor industries.
  • The recent strikes which shutdown the gold and motor industries is expected to have cost about $65 million a day in output from the South African economy.
  • Chinese exports continued to gather steam, rising 7.2% in August from a year earlier.
  • The overall picture was of a Chinese economy benefiting from progressive strengthening of demand in the U.S. and other important export markets. China is also continuing to stock up on raw materials for its industrial sector.
  • The reserve bank announced yesterday that South Africa’s current account deficit widened more than expected to 6.5% of GDP in the 2nd quarter of 2013 from 5.8% in the 1st quarter.
  • This increase is mainly due to the acceleration in the rand price of imports compared to exports and violent wage related strikes.
  • Capitec Bank expect their earnings per share and headline earnings per share for the half year ended 31 August 2013 to exceed that of the previous corresponding period by between 18-22%. The financial information on which this is based is expected to be published around the 25th September.

Sasol – Limited audited financial results for the year ended 30 June 2013

  • Operating profit up by a record 26%
  • Headline earnings per share up by 25% to R52,62
  • Total dividend of R19,00 per share, up by 9%
  • Cash generated by operating activities up by 24%

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
  • Anglo American Plc – LDT, 8th August
    Paying: Cash option, 12th September – R2.65635 /Share option, 19th September – Ratio TBA
  • Exxaro – LDT, 6th September (Pay Date, 16th September)
    Paying R2.35
  • Naspers – LDT, 13th September (Pay Date, 23rd September)
    Paying R3.85