Traders Corner

on . Posted in News Flash

US markets closed off their lows last night following notes from the Fed that proved unexciting, but mostly in line with what analysts had expected. Asian markets are also trading without much direction this morning, with emerging market currencies remaining weak against the US Dollar. The Rand was last quoted at R10.67/$, with gold trading at $1,293 an ounce. World futures are trading flat.

Key macro events:

    • SA: PPI Y/Y – expected: 8.4%
    • SA: Trade balance – expected: -R6.3-billion
    • US: Challenger job cuts
    • US: RBC Consumer outlook
    • US: Initial jobless claims
  • US: Bloomberg consumer comfort

Mid-week snap shot

on . Posted in Financial Advice Blog

The JSE All Share Index closed higher 0.61% on Tuesday, 29th July, to reach yet another all-time high with major gains coming for the mining sector as the strikes in the metal industry have come to an end.

South Africa’s unemployment level reached a six-year high in the second quarter.

Statistics South Africa’s quarterly labour force survey showed on Tuesday that official unemployment rose for a third consecutive quarter to 25.5% or 5.2 million.

Expanded unemployment — taking into account people who have given up looking for jobs — rose to 35.6%

The IMF cut South Africa’s economic growth forecast for this year to 1.7% in its latest World Economic Outlook update, from 2.3% in April, amid Eskom’s supply constraints, repeated strikes and a weak recovery in global demand.

Reserve bank data released on Tuesday shows that Growth in credit demand from South Africa's private sector quickened to 8.69 percent year-on-year in June, from 8.34 percent in May.

Economists had expected credit growth to slow to 8.1 percent

Vodacom Group Limited - Quarterly update for the period ended 30 June 2014

Group revenue increased 4.3% (2.7%*) to R18 287 million

Group active customers grew 15.6% to 59.6 million and active data customers(1) grew 36.7% to 25.3 million

International service revenue up 17.3% (7.8 %*) supported by strong customer growth and M-Pesa

Anglo American plc - Half Year Financial Results

Improved business performance, reflecting a greater focus on mining processes and costs, underpins turnaround strategy

Higher volumes across most of the portfolio, with cash costs down 2% in real terms

Group underlying operating profit(1) of $2.9 billion for the half year, a 10% decrease

Long term net debt target of $10 to $12 billion, supported by increased operating cash flows and divestment proceeds from refocusing of portfolio

Curro Holdings Limited - Trading statement

Shareholders are hereby advised that a reasonable degree of certainty exists that the Company will report attributable and headline earnings per share of between 8.2 cents and 9.2 cents for the six months ended 30 June 2014.

The interim financial results for the six months ended 30 June 2014 are expected to be published on or about 05 August 2014.

Forthcoming dividends

SABMiller PLC – LDT 1st August (Pay Date, 15th August)

o Paying R7.18

Kumba Iron Ore – LDT 8th August (Pay Date, 18th August)

o Paying R13.27

Tradewise Report

on . Posted in Investment general

The Nikkei Index inched 0.17% higher to trade near six-month highs in volatile trade on Wednesday on the back of better-than-expected earnings from Honda Motor Co and Tokyo Electron Ltd, which overshadowed weak industrial output data.

The Hang Seng Index gained more than 0.9% on Wednesday, advancing higher for a seventh straight day with investor sentiment bullish on the property sector, while shares on mainland China ended a long-running streak as early gains made by index heavyweight PetroChina Co Ltd were counterbalanced by falling real estate and banking shares.

According to Reuters, European markets are expected to open flat to slightly weaker on Wednesday with a number of blue-chip shares such as Airbus and Infineon under the spotlight after reporting their quarterly financial results.

Reuters reports that US markets slipped lower in a broad sell-off on Tuesday, on the back of a lower than expected second-quarter earnings from United Parcel Service (UPS), the world's biggest courier company, which lost 3.7% and put pressure on transportation stocks, which is often viewed as a proxy for business activity. Business Day reports that the JSE All Share Index reached a new record high on Tuesday with mining shares leading the gainers, supported by the small bounce in metals prices off their recent lows.

The Rand is trading weaker at R10.6107 against the US Dollar, with the Euro quoted at R14.2233 and the British Pound at R17.9451.

The gold price last trading lower at $1,299.30, with the platinum price quoted at $1,476.70, while the palladium price is trading higher at $880.30.

Brent was last trading slightly higher at $107.52 a barrel.

Traders Corner

on . Posted in News Flash

US markets stumbled after our close last night with both the Dow Jones & S&P500 Index dropping 0.4% lower, losing their initial positive momentum. Asian markets, however, cannot seem to be bothered, as they are trading higher across the board, but our dual listed catalysts are not among the gainers. The Rand remains weaker as it is trading at R10.60/$, with the gold price last quoted at $1,298 an ounce. US futures are trading +0.2% this morning.

Key macro events:

    • SA: Electricity Production & consumption Y/Y
    • SA: Budget
    • US: MBA Mortgage applications
    • US: ADP Employment change
  • US: GDP Annualized Q/Q – expected: 3%