Mid-week snap shot

on . Posted in Financial Advice Blog

The JSE All Share Index closed 0.99% higher on Tuesday, 22nd July, recovering from a 3-day drop of 1.25%

The SARB announced a 0.25% increase in the repo rate last week Thursday to 5.75%. The increase comes after no change in the rate at the MPC meetings in March and May. With the next meeting to be held in September, expectations are another increase of 0.25%.

The headline CPI annual inflation rate in June was 6.6%, equal to the annual corresponding rate of 6.6 in May 2014.

On average prices increased by 0.3% between May and June 2014.

US Stocks rose on Tuesday, 22nd July, due to an overall positive release of corporate earnings reports as well as a housing report released showing the highest level of home sales in eight months, rising by 2.6% in June 2014.

The Rand traded firmer against the dollar this morning reaching a four week high, breaking below the R10.55 level.

Kumba Iron Ore Ltd - Reviewed consolidated interim results for the six months ended 30 June 2014

Production of 22.8 Mt, up by 5% from 21.6 Mt in 1 half of 2013

Operating profit decreased by 14% due to lower export iron ore prices and increased costs from mining activities

Total sales volumes increased by 2% to 22.5 Mt

R5 billion interim cash dividend declared to shareholders totalling to 1561 cents per share.

BHB Billiton - Operational Review for the Year Ended 30 June 2014

Strong operating performance delivered a 9% increase in Group production

Western Australia Iron Ore volumes increased to 225 Mt, significantly exceeding initial full-year guidance.

Metallurgical coal production of 45 Mt exceeded full-year guidance as Queensland Coal achieved record production and sales volumes.

Copper production increased to 1.7 Mt

Petroleum production increased by 4%, with an 18% increase in liquids volumes underpinned by significant growth at Onshore US and Atlantis.

Forthcoming dividends

Lewis – LDT 11th July (Pay Date, 21st July)

Paying R3.02

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

Paying $0.8

Tradewise Report

on . Posted in Investment general

The Nikkei Index traded slightly lower on Wednesday as investors became risk averse due to geopolitical concerns in the Gaza Strip, while positive sentiment from gains made on Wall Street overnight also limited losses.

The Hang Seng Index closed firmer on Wednesday as investors looked for shares paying high dividends, while major Chinese companies listed on the Hong Kong market were also in demand, particularly undervalued financial and energy shares.

Reuters reports that European markets are seen opening slightly lower on Wednesday with investor sentiment remaining nervous despite signs of co-operation between rebels and the West after the rebels handed over the black boxes to the Malaysian airliner that was shot down over Ukraine, for an investigation.

According to Reuters, shares on Wall Street ended firmer on Tuesday on the back of positive earnings from companies such as Verizon Communications, the burrito chain Chipotle Mexican Grill and Netflix, while strong economic data also suggested that there was still more upside potential despite the S&P 500 Index reaching another intraday record high.

Business Day reports that the JSE All Share Index closed 0.99% higher on Tuesday and reversed a three-day decline with resource leading the advance on easing geopolitical tensions in the Middle East and Russia, while indications that the four-week strike in the metal industry could end soon also lifted investor sentiment.

The Rand is trading firmer at R10.5671 against the US Dollar, with the Euro quoted at R14.2279 and the British Pound at R18.0042.

The gold price was steady in Singapore on Wednesday as geopolitical tensions still encouraged some safe-haven bids but slow physical demand in the seasonally quiet summer period could see things change. The gold price last traded at $1,305.74, with the platinum price quoted at $1,480.05, while the palladium price is trading at $870.70.

Brent was last trading lower at $107.13 a barrel.

Traders Corner

on . Posted in News Flash

US markets saw yet another higher close yesterday with Apple profits beating estimates on strong iPhone sales, and Microsoft revenue topping expectations, although a slight miss on earnings. Asia is trading stronger this morning with BHP Billiton 1.25% higher on strong 4th quarter numbers. The Rand broke through technical levels, currently R10.56/$ with gold trading at $1306 an ounce. World futures are trading flat.

Key macro events:

    • SA: CPI (Y/Y) – expected: 6.7%
  • US: MBA Mortgage applications


Tradewise Report

on . Posted in Investment general

The Japanese market rose on Tuesday after the three-day weekend, with exporters pulling ahead as the strong yen trend paused although geopolitical concerns plaid the upside.

The Hang Seng Index reached its highest level in more than seven months early on Tuesday, leading gains in Asia, as recent fund inflows pushed up the territory's blue-chip stocks. Also pushing up the index were moves by investors to cover their short positions in the absence of negative news from China.

Reuters reports that European markets closed lower on Monday with volatility falling during the day as the loss of the Malaysian jet was seen as intensifying international pressure to resolve the worst crisis between Russia and the West since the Cold War.

According to Reuters, U.S. stocks fell on Monday as investors remained cautious about instability in Ukraine and Gaza, though the three major indexes ended well off their lows, a sign that some appetite for riskier assets remained.

Business Day reports that the JSE All Share Index closed 0.53% lower to 51420.81 points on Monday, with the Top 40 index giving up 0.60%. Platinum and gold shares were the gainers‚but were offset by falling rand hedge and industrial shares‚losing out as global investors took on a risk-off position.

The Rand is trading firmer at R10.6080 against the US Dollar, with the Euro quoted at R14.3438 and the British Pound at R18.0799.

The gold price was steady in Singapore on Tuesday trading at the $1,310 an ounce level as escalating tensions over conflicts in Ukraine and the Gaza strip dented global risk appetite and burnished the metal's safe-haven appeal. The gold price last traded at $1,307.95, with the platinum price quoted at $1,480.20, while the palladium price is trading at $864.43.

Brent was last trading higher at $107.89 a barrel.