Sharenet Morning Market Report

Local markets

By midday, the JSE All Share had fallen 1.49%, as oil & gas and basic materials shares tumbled and the local bourse took a lead from weaker Asian markets.

The rand was trading at R7.78 to the US dollar at 12:00, weakening as investors act cautiously before the release of current account data from the SARB’s Quarterly Bulletin. More local data is expected later this week.

Oil cost $70.69 a barrel at noon, sliding 1.82% as the Shanghai index dived and investors in commodities are unsure whether the US could recover properly in the next six months.

International markets

On Friday, the Dow Jones closed 0.38% lower while the Nasdaq edged up 0.05%. Boosting US markets were computer manufacturers Dell and Intel after they released positive quarterly performance results, but poor US consumer data offset most gains.

The Nikkei index slid 0.4% this morning after a stronger yen and weaker Chinese stocks weighed in on gains that came after the opposition party won the Japanese election.

In Hong Kong, the Hang Seng fell 1.86%, its first monthly loss in six months. The index was hit by losses on the Chinese mainland after investors feared a decrease in liquidity in the market.

In the UK, the FTSE 100 was closed for a bank holiday.

Share price news

Investment bank Cadiz Holdings Limited was one of the top movers upwards at 12:00 on the last day of August. Share prices rose 12.73% to sell at R3.10 after 22 deals. Great Basin Gold rose 9.90% to trade at R10.99 a share after two deals.

Electrical equipment company Delta EMD LTD tumbled 22.22% after nine deals, to sell at R10.50 a share. Alliance Mining Corporation slid 6.78% as 22 deals pressured the share price down to R2.75 at midday.

Local Markets

The JSE opened slightly stronger this morning, led by resources after a weakened dollar. After opening sharply on the upside, there was a bit of profit-taking but the market is now looking towards the Dow for further direction. With the Michigan consumer sentiment data due out today, market players will track movements in the US. By midday, the All Share was trading 1.12% higher.

The rand was firm against the dollar this morning. It is expected to trade within a tight range until the release of consumer sentiment figures in the US later today. The reports from Eskom yesterday showed that electricity supply would remain tight but there was little risk of power cuts over the next 12 months, which certainly helped the rand. At midday, the rand traded at R7.74 to the dollar.

The gold price improved slightly this morning as a weaker dollar pushed investors towards safe-haven assets. By noon, the gold price had gained 0.28% to sell for $950.74 per troy ounce.

International Markets

US equities finished higher yesterday as investors bought again in the late session after an early sell-off. This return was thanks to a rebound in oil prices. Energy stocks rallied after crude oil prices rose and the broader market followed suit. Among the biggest gainers was Boeing Co which received a major boost after reporting that its long-delayed 787 Dreamliner model would make its first flight by year-end. By close, the Dow Jones was 0.39% up whilst the Nasdaq had gained 0.16%.

The Nikkei edged up slightly overnight, recouping losses made in the previous session. Trade was thin though as investors remain cautious over the impending national election this Sunday. However, an 8-day rising streak from the Dow certainly aided sentiment and many of the exporters were able to monopolise on the improved demand suggestions. Japan’s benchmark index closed 0.57% higher this morning.

Shares in Hong Kong dropped 0.7% overnight tracking a steep loss in the Shanghai bourse. The equities there are under pressure on worries over the shrinking flow of liquidity into stocks. However, losses in Hong Kong were slightly mitigated by the gain of Bank of China Hong Kong which led the banking stocks higher. It posted a lower than expected interim earnings drop which prompted buying. The Hang Seng closed 0.71% lower this morning.

London stocks rebounded this morning, aided greatly by an upward revision to national GDP data. The second reading for the UK’s second quarter GDP reflected a 0.7% shrinkage as opposed to the previously reported 0.8% shrinkage. Importantly, inventories have declined significantly from the beginning of the year so a raised output is probable for manufacturing, wholesale and energy sectors for the second half of the year. By noon, the FTSE 100 was 0.96% higher.

Share Price News

Among the morning’s winners was Merafe Resources Ltd of the Metals and Minerals sector. It managed to attract volumes of trade as resources led the All Share higher this morning. By noon, a share traded for R1.56 (a 4.70% gain). From the Platinum sector, Lonmin Plc managed to improve on similar sentiments. At midday, its shares traded for R187.47 each, marking a 4.15% improvement.

Among the losers, Impala Platinum Holdings Ltd of the Platinum sector stood out as investors remain concerned over the illegal strike actions taking place at its mines in Rustenburg. At midday, a share cost R187.00 (a 2.35% loss). Also performing poorly was Datacentrix Holdings Ltd of the Computer Services sector. By noon, it had lost 2.33% to sell for R4.20 per share.

Local Markets

The JSE opened slightly weaker in early trade this morning. In the midst of earnings reporting season, some major local companies are set to release reports today. Producer Price Inflation (PPI) data is the central economic indicator due out today and other event risk affecting the market will be the release of US second-quarter GDP data. The main factor steering direction is the report by Chinese government that it will look to curb expansion and production in a number of industries in order to buoy demand. This has put immense pressure on commodities prices, so the weakened resource stocks have led the market lower. By noon, the All Share was 0.05% in the red.

The rand is trading within ranges this morning, managing to sustain a level below R7.90 to the dollar. The US government’s decision to issue a further $500 million debt offshore came as a pleasant surprise to currency speculators. However, the pressure to beat market expectations is now even greater as yesterday’s positive housing data left markets unimpressed and actually triggered a bounce in the US dollar. By noon, the dollar traded for R7.85.

The oil price fell towards $70 per barrel in eastern markets on Thursday. After reaching a 10-month high earlier this week, rising crude oil stocks eclipsed positive economic data from the US and Europe. Analysts are questioning whether commodities and equities markets have priced in the recovery in the US housing markets as well as other encouraging data. The oil price is expected to remain within this tight range for the rest of the day. At midday, a barrel of Brent Crude cost $70.70.

International Markets

US markets were fairly flat on Wednesday after recent rallies. Equities remained relatively stable despite reports on new home sales and durable goods orders. Sales of new homes grew at the fastest pace in 10 months but the impact on the broader market was muted as analysts claim the effects were already factored in. The housing sector managed to gain though on the improved demand indications. By close the Dow Jones was 0.04% up whilst the Nasdaq barely improved by 0.01%.
The Nikkei average shed value after a bout of profit-taking. After a reaching a 20-month closing high on Wednesday and pressured by a stronger yen and depressed Chinese equities, traders remained wary ahead of national elections also coming up on the weekend. Even with improved demand indicators from the US, the earnings figures are out and traders are now looking at the volatile Chinese markets for direction. Japan’s benchmark closed 1.56% down this morning.

Shares in Hong Kong lost ground in thin volume overnight. Blue chips such as Esprit Holdings and CNOOC Ltd were sold down after a weak reflection in earnings results. The world’s No.6 fashion retailer Esprit posted a 40% fall in second-half profit, as global economic distress clearly affected its core European market. The Hang Seng finished 1.04% lower this morning.

Equities in London opened slightly higher this morning but the market is in need of more distinctive indicators to steer it in any direction. The reporting season is nearly over so equities might suffer from a short-term information void. With a bank holiday coming up, the market is likely to remain around current levels as traders slip away for an early weekend. The most significant move for the day came from the mid-cap national transport operator National Express, which received a takeover approach from a large consortium that already owns a large stake in the company. By midday, the broader FTSE 100 had made modest gains of 0.08%.

Share Price News

Blue Label Telecoms Ltd of the Wireless Telecom Services sector secured voluminous gains this morning as investors retreat from commodities and resource stocks. By midday, it had improved 7.41% to sell for R5.80 per share. Also performing well during the early session was Netcare Ltd of the Hospital Management and Long Term Care sector. Its equities traded for R10.71 each by midday, reflecting a 3.98% gain.

Among the losing stocks, Metorex Ltd of the Metals and Minerals sector lost ground. Resources and mining stocks across the board shed value on the news that Chinese demand for supply materials would be dampened. Also contributing to the poor performance of mining stocks is the incessant threat of illegal strikes among mine-workers. By noon, a share in Metorex cost R3.99 (a 2.68% loss). After releasing a depressed set of results earlier today, the retailer Massmart Holdings Ltd of the Retailers – Multi Department sector lost ground. It traded for R78.10 per share by noon, a 2.38% reduction.

Local Markets

The JSE opened fairly flat this morning with most investors awaiting local CPI data due out this today and other US economic data due out later today. US markets were slightly stronger after improved home sales data and a rise in consumer confidence indices. Asian markets also stabilized on the prospect of economic turnaround. By midday, the All Share was still relatively flat, having given up a mere 0.55%.

The rand opened marginally stronger against the dollar in the morning session, but remained in a tight range given little economic data to prompt movement. Firmer regional equity markets, especially in Asia, caused speculators to purchase riskier units such as the euro. By midday, the rand traded at R7.79 to the dollar and is expected to remain around this level for most of the day.

The price of gold moved up during early trade today. The dollar remained stable but investors were acutely aware of rising equities attracting money away from the bullion. A weaker dollar supports interest in gold as investors sell the currency to buy alternative assets and if the dollar’s weakness is related to US-linked concerns then gold’s appeal is further boosted as a hedge against risk. By midday, a troy ounce cost $949.05.

International Markets

US equities gained on Tuesday following the release of encouraging economic data and the renomination of Federal Reserve Bank chief Ben Bernanke’s for a second term. The Conference Board’s August index for consumer confidence exceeded analysts’ forecasts whilst the home price index of S&P rose for a second consecutive month. This suggests improvements in two of the sectors crucial to a recovery in the US economy. The news spurred a rally in retail stocks. The Dow Jones closed 0.32% in the green whilst the Nasdaq finished 0.31% higher.

Japan’s benchmark average rallied overnight to reach its peak close in 10 months this morning. Improved US economic data strengthened hopes of a recovery but trad was thinned ahead of a national election taking place on August 30. Toyota Motor Corp gained after it signalled an intended cut in global production to match depressed sales. Other electronics stocks also gained after reports that government aid may be sent in that direction. The Nikkei closed 1.36% higher this morning.

Trade in Hong Kong was fairly flat overnight as investors remained particularly concerned over liquidity problems in China markets. However this sentiment was assuaged somewhat by stronger earnings momentum that buoyed shares in China Life and Air China. The Hang Seng closed basically flat at 0.10% higher.

Equities in London remained fairly flat during the morning session. The index managed to finish slightly higher by close yesterday, leaving it around a 10-month high despite being in negative territory most of the day. The general feeling is that although the FTSE may well have run ahead of fundamentals, equities will continue to extend gains as traders remain optimistically bullish. By midday, the benchmark index had lost 0.12%.

Share Price News

Among the morning’s winners was Arb Holdings Ltd of the Electrical Equipment sector. By midday, its shares traded for R2.35 each, marking a 6.33% gain. Also managing to attract interest in the early session was Bell Equipment Ltd of the Leisure Equipment sector. At noon, a share cost R10.00 (a 3.09% improvement).

On the other side of the spectrum, Sentula Mining Ltd of the Metals and Minerals sector lost ground this morning. It shed 3.28% value to trade for R3.24 per share by midday. Also performing poorly was Aquarius Platinum Ltd of the Platinum sector, probably due to the mass illegal strike affecting output at its Rustenburg mine. It lost 2.82% during the morning to sell for R34.50 per share.

Local Markets

The JSE was relatively flat this morning, following dreary global market performances. All eyes remain fixed on US housing data due for release later today as investors seek firm confirmation that the purported economic recovery is indeed on the horizon. A bout of profit-taking after recent rallies certainly didn’t help matters and resources seemed to suffer the biggest losses in that regard. By midday, the All Share was 0.29% down.

The oil price fell on Tuesday, after a 6-day rally. A flat US market performance and subdued Asian markets sparked new concerns over the anticipated economic recovery. The drop is linked to the equity market performances as demand for crude oil may have declined slightly but demand for related products remains high. At midday, a barrel of Brent Crude cost $73.03.

The rand opened slightly lower this morning as dollar buying interest is on the rise. Markets are still waiting on US consumer data due out later today. Production data in the US may have improved but there are still no signs that the consumers on the demand side of the economy are willing to spend aggressively again. Meanwhile, locally the SARB’s lead indicator climbed 1.8% m/m in June. At midday, the rand was trading at R7.79 to the dollar.

International Markets

Equities in the US were flat on Monday as traders took cognisance of the 4-day rally that had lifted equity indices to 10-month highs. Initially stocks had gained but US Treasury bond prices climbed almost 2 full points to neutralise any gains made in equity markets. Investors hailed this movement as a signal that too much buying had been taking place and the market remained stable on that level from that point. The Dow Jones closed 0.03% up whilst the Nasdaq finished 0.14% down.

The benchmark index of Japan shed some value overnight after Monday’s surge of nearly 3.4%. Exporters lost ground after leading the drive to buy on Monday. Investors booked profits after the rally, waiting for US housing data to reconfirm that economic recovery is indeed on the horizon. With a national election taking place on the weekend, traders are reluctant to buy. The Nikkei closed 0.79% down.

Shares in Hong Kong opened slightly higher on Tuesday but were quickly subdued by aluminium producer Chalco’s interim losses. The market sought positive data elsewhere but remained fairly flat on that level. Investors await US housing data, due for release later today. The benchmark Hang Seng finished 0.49% lower.

London stocks were suppressed this morning as resources retreated from the forefront of recent rallies. Investors booked profits ahead of key US data coming out today. Analysts are questioning whether the encouraging economic data of late is justification for such high stock prices. The retreat from risk also took a toll on Sterling as the pound hit its lowest level against the euro in over 2 months. By midday, the FTSE 100 was trading 0.12% lower.

Share Price News

Mustek Ltd of the Computer Hardware sector managed to secure voluminous gains during the morning session. At noon, a share sold for R2.20, reflecting a 4.76% improvement. Also performing well during the morning was Metorex Ltd of the Metals and Minerals sector. At midday, a share traded for R121.50 (a 2.50% gain).

Exxaro Resources Ltd of the Metals and Minerals sector saw volumes of investment retreat this morning. By midday, it had shed 3.11% in value to trade for R93.01 per share. Also among the morning’s losers was Arcelormittal SA Ltd of the Steel sector. Resources are definitely much of the cause for a subdued local index today. It had lost 2.99% by midday to sell for R121.50 per share.

Local Markets
The JSE opened firmer this morning, on the back of strong Asian market performances. Resources led the upside as many exporters continue to rally on hopes that global markets are beginning to stabilize. European stocks are set to follow trends started late last week in the US that have moved to Asia. By midday, the All Share had improved 1.35%.

The rand improved immediately on open this morning, breaking the R8/dollar mark. The positive housing data in the US helped to promote gains in equity markets there, which had positive effects for emerging currencies such as the rand. With little event risk to impact the market, the rand should remain stable around the R7.80 level today. Tuesday, however, should bring some volatility to the movements as local and international data due out this week is sure to spur a change in sentiment. By midday, the rand was trading for R7.78 to the dollar.

The oil price improved earlier today, extending recent rallies made on hopes that energy demand will rebound as the US economy looks set for recovery. At midday the oil price was $73.47 for a barrel of Brent Crude.

International Markets
US equity markets peaked on Friday to close at their highest marks for 2009. Reassuring comments from Fed chairman Ben Bernanke along with an unexpected rise in home sales sent a wave of optimism through the markets. At the Fed’s annual conference in Wyoming, Bernanke gave his clearest indication yet that the global economy is indeed emerging from its recession. Investors responded positively to the assertions although with key consumer spending data and other like statistics due out this week, profit-taking seems a likely outcome. The Dow Jones finished 1.67% up whilst the Nasdaq closed 1.59% in the green.

Japan’s benchmark average rallied considerably overnight. The gains were largely tracking movements of US markets where anticipation of a global economic recovery is spurring the impetus. Canon Inc and other major exporters led the way with voluminous gains. Oil and gas developer Inpex gained along with other energy-linked shares as the oil price began to steady around the $74 mark. The Nikkei closed 3.35% up this morning.

Shares in Hong Kong also rallied overnight, tracking gains made in international markets. Refiners and Chinese financial stocks took advantage after Sinopec and China Construction Bank reported strong earnings. The Hang Seng finished 1.67% higher this morning.
Equities in London continued their forward movement during the morning session. Investors are pleased with the rallies taking place across global markets and there appears to be sustained outlook for economic recovery. These gains extend the FTSE 100 into its best summer rally since its creation in 1984, building on 10 month highs reached in the previous session. At midday, the FTSE 100 was trading 0.77% up.

Share Price News
Among the morning’s winners was Trans Hex Group Ltd of the Diamond sector. Its shares were trading 13.64% up by midday for R3.75 per share. Also performing well over the early parts of the session was Pallinghurst Res Ltd of the Investment Companies sector. It managed to secure gains of 8.11% before midday. A share traded for R4.00 at noon.

Among the losers, Alliance Mining Corporation Ltd of the AltX sector stood out. As investors moved towards the better known resource stocks, Alliance suffered a 8.82% loss to trade for R3.10 by midday. Also performing poorly was Lonrho Africa plc of the VCM (Venture Capital Market). Its shares traded for R1.01 (a 8.18% reduction) by midday.

Local markets

Gains in financial stocks lifted the JSE All Share by 0.95% at midday, managing to offset earlier losses when resources tipped the local bourse into the red after a poor performance on Asian markets.

The rand was trading at R7.86 to the US dollar at 12:00, remaining strong beneath the R8 mark but generally lacking direction.

Gold was selling at $942.10 an ounce, edging up 0.22% though analysts suspect the price might fall due to the lack of firm fundamentals.

International markets

The Dow Jones rose 0.76% yesterday while the Nasdaq closed 1.01% higher after gains in financial stocks boosted US markets. Investor confidence increased on news of positive US manufacturing data and the recovery in Chinese stocks.

In Japan, the Nikkei index fell 1.4% this morning as automakers and other exporters were hit by a stronger yen. Also damaging sentiment was news that the US intends to end its car rebate programme in the near future.

The Hang Seng dipped 0.64% as investors resumed their fears about a tightening up of monetary policy from Beijing. China Mobile shares continued to fall after yesterday’s report of poor 2nd quarter results.

The British FTSE 100 had risen 0.82% by noon, continuing yesterday’s rally as investors took heart from positive closes on Wall Street, and oil majors rose as the price of crude held.

Share price news

Cenmag Holdings Limited, whose subsidiaries are involved in the manufacture of electromagnets, rose 14.24% as shares sold for R3.45 at 12:00. Second top mover upwards this morning was Great Basin Gold Limited, whose shares rose 7.40% to trade at R10.89 after just one deal.

On the way down was Gold One International Limited, whose shares fell to R1.95 after 13 deals took the price lower by 6.70%. Mining company Sephaku lost 6.67% after shares slid to R7 after two deals.

Local markets

By 12:00 on Thursday, the JSE All Share had risen 1.31% with basic materials stocks and gold miners leading the upward charge. The local bourse took direction from stronger US and Asian markets.

The rand was trading at R7.94 to the US dollar, strengthening in line with positive local and US equity markets.

Oil cost $73.48 a barrel at midday, rising 0.66% as the commodity continued to enjoy support from industry data that revealed that crude imports and inventories in the US had fallen considerably.

International markets

Yesterday the Dow Jones closed up 0.66% while the Nasdaq lifted 0.68% as investor sentiment improved on news of a steep drop in crude oil inventories that suggests economic recovery may be on its way.

The Nikkei average gained 1.76% this morning, rebounding from its lowest close in three weeks on positive investor sentiment as crude oil rose to boost resource stocks.

The Hang Seng jumped to 1.88%, taking a lead from the Shanghai index which surged to 4.52%, though closing off its highs as weak earnings for China Mobile dampened investor sentiment slightly.

The British FTSE 100 risen 1.36% as energy stocks gained on stronger crude oil prices, and as the bourse followed gains on US and Asian markets.

Share price news

Continuing to rally, Illovo Sugar Limited NPLs gained 41.54% as share prices rose to R4.60 at midday after 24 deals. Transpaco Limited in the containers and packaging industry rose 17.92% after three deals took the share price to R6.25 at noon. The company issued its reviewed results and dividend announcement this morning, reporting an increase in turnover of 11.5% and an increase of 71.4% in dividends.

First Uranium Corporation fell to R26.04 a share after a single deal, a loss of 10.21%. Also losing ground was IPSA Group whose shares fell 7.41% to trade at R1.25, after one deal.

Local markets

The JSE All Share had fallen 0.98% by midday on Wednesday, as weaker metal prices took their toll on resource stocks. However, financial shares experienced the largest loss of the sectors, down 1.57% by 12:00.

A strengthening US dollar had the rand on the back foot at noon, when the local currency exchanged at R8.06 to the dollar.

Gold was selling at $934.65 an ounce, falling 0.25% as the precious metal’s appeal as a currency hedge against the dollar dimmed.

International markets

US markets rebounded yesterday after retailers released better results than were expected, which offset negative sentiment from weaker housing figures. The Dow Jones closed 0.9% higher, while the Nasdaq rose 1.3%.

The Japanese Nikkei index finished 0.79% lower this morning, its lowest close in three weeks after investors were discouraged by tumbling Chinese shares and futures sales caused the cash market to slide.

In Hong Kong, the Hang Seng dropped 1.73%, reaching its lowest close in a month as the bourse shadowed losses in the Shanghai index.

Britain’s FTSE 100 dipped 0.87% at midday, reversing yesterday’s rally as investors became more risk averse and sold off banking, mining and oil stocks.

Share price news

Great Basin Gold Limited gained 7.74% by 12:00 as shares sold for R11 after just one deal. Capitec in the banking sector rose to R53 a share, a gain of 6% in share price after 22 deals. The company issued a trading statement this morning announcing that their earnings and headline earnings per share exceed last year’s figures by 35-55%.

CIC Holdings Limited, parent company to smaller fast moving consumer goods companies, experienced a 9.09% loss as shares fell to R1 each after two deals this morning. After 20 deals, Chemical manufacturer African Oxygen Limited lost 6.83% as shares slid to R19.52 each.

Local markets

At noon on Tuesday, the JSE All Share had recovered by 0.71% after yesterday’s losses, though the local bourse is still awaiting direction from local GDP figures due this afternoon.

The rand had strengthened against the US dollar, reaching R8.04 at midday after yesterday’s turbulent session. The local currency is expected to react to GDP figures later today.

Oil was trading at $70.34, rising 3.44% after hitting a two-week low yesterday as investors continue to be concerned about the speed of global economic recovery and oil demand.

International markets

The Dow Jones tumbled 2% and the Nasdaq slid even further, losing 2.75% yesterday as poor Japanese data and a negative outlook from a leading retailer dampened investor sentiment.

The Japanese Nikkei edged up 0.16% this morning, overcoming investor worries that the recent rally in risk assets may be overdone.

The Shanghai index closed higher by 1.4% while the Hang Seng rose 0.84% as Chinese shares recovered part of recent losses and boosting Hong Kong stocks in the process through bargain hunting.

The FTSE 100 had lifted 0.75% thanks to gains in banks, miners and oil stocks as investors awaited July inflation data.

Share price news

Once again the top mover upwards at midday, Illovo Sugar Limited NPL rose 12.18% to sell at R1.75 a share after 14 deals. Shares in Simmer and Jack Mines Limited gained 5.39% after 23 deals boosted the price to R2.15 at 12:00.

Ellies Holdings Limited fell to R1.55 a share, a drop of 7.74% after two deals. TWP Holdings Limited in the construction company lost 7.54% after two deals pressured the share price down to R6.01 each at noon.

Local markets

The JSE had lost 2.79% by 1pm on Monday, as the local bourse followed Asian markets down after weak economic data from Japan and poor performance of the Shanghai index.

The rand was trading at R8.20 to the US dollar, losing ground against the American currency after the gold price took a tumble.

Gold slid 1.09% to sell at $935.55 an ounce, continuing last week’s losses as poor consumer confidence reports from the US dampened hopes of economic recovery, which also took a toll on the oil price.

International markets

On Friday, the Dow Jones closed 0.82% down, and the Nasdaq slid 1.19% after US stocks were hit by weak consumer data.

The Japanese Nikkei fell 3.10% this morning, its lowest plunge in almost five months, as investors took profits after suspecting shares were overbought.

The Hang Seng lost 3.62% as Hong Kong shares tracked the fall in Chinese stocks which came after negative consumer sentiment was reported in the US.

Britain's top share index fell 1.79%, also shadowing Asian markets and Friday’s Wall Street results after investors renewed concern over the delay in economic recovery.

Share price news

Just before 1pm, Illovo Sugar Limited NPL gained 10% to sell at R1.65 a share after 19 deals. Mvelaphanda Resources Limited rose to R40.47 a share after 167 deals this morning, gaining 6.5%.

Moving down was Diamondcorp PLC, whose shares fell to R2, 20% down after four deals. B & W Instrument & Electrical Limited slid 9.68% after two deals sent the share price down to R1.40 each.

Local Markets

The JSE opened relatively flat this morning after a steady session of gains yesterday. The market is waiting for key US inflation data due out today before moving further. Of course, some profit-taking (especially in the prominent stocks) hasn’t helped matters but the slightly weaker rand is limiting losses. By noon, the All Share was trading 0.26%.

The rand fluctuated within a reliable range during the morning session, after a week of relatively volatile sessions. Mixed economic data throughout the week failed to give traders a firm sense of direction. Having closed in a strong position yesterday above R8 to the dollar, the currency lost a fraction against the dollar on open. The SA Reserve Bank’s repo rate decision certainly affected the upward momentum the rand was enjoying up to the announcement. By midday, a dollar cost R8.012.

The gold price improved marginally this morning as a cautious mood began to infiltrate equity markets. Disappointing US retail data saw equity markets pull back from previous sessions’ momentum. Many investors hedge their bets with investment in gold as a safe-haven asset. By noon, a troy ounce traded for $955.65.

International Markets

Equities in the US managed to creep upward on Thursday after the surprisingly favourable earnings figures posted by Wal-Mart Stores Inc boosted enthusiasm in trading circles. It’s positive 2nd-quarter earnings and promising outlook for the rest of the year helped to assuage woes over the disappointing government data on retail sales and joblessness (which still indicate weak consumer demand). Wall St were defiantly bullish in the face of this negative news and the Dow Jones closed 0.39% up whilst the Nasdaq finished 0.53% higher.

The Nikkei index closed nearly 1% higher to reach a 10-month pinnacle overnight. The surge was aided by evidence emerging from various corners that the global economy is indeed set to improve. However, ailing Chinese equity markets put up resistance against the upward movement. Once again, construction machinery manufacturers were amongst the biggest winners having received brokerage rating upgrades recently. Japan’s benchmark average closed 0.76% up.

Shares in Hong Kong managed to claw back nearly 0.2% by close early this morning after shedding over 1% earlier in the session. Encouraging earnings momentum, especially from selected goods exporters, prompted the return to positive territory. The Hang Seng closed 0.15% up this morning.

Persistent speculation over a possible bid from wealthy Asian investors or sovereign wealth funds for British property firms is leaving traders excited over the improved liquidity prospects and related benefits. British Land, Hammerson and land Securities (all from the property sector) gained significantly this morning. However, disappointing US retail data that pushed Wall St indices off their peak levels yesterday are prompting a cautious mood globally. By noon, the FTSE 100 was trading 0.14% in the green.

Share Price News

Richemont, of the Clothing and Footware sector, performed well this morning. By midday, a share traded for R21.40 (a 5.47% improvement). Also managing to attract volumes of investor interest was Merafe Resources Ltd of the Metals and Minerals sector. At noon, its shares traded for R1.66 each, marking a 3.75% gain.

Among the morning’s biggest losers was Sentula Mining Ltd of the Metals and Minerals sector. At midday, a share traded for R3.01 (a 9.06% decline). Also performing poorly during the morning session was Absa Group Ltd of the Banks sector. This comes on the back of issuing a lower than forecasted preference dividend. Its shares traded for R124.00 each by midday, reflecting a 1.59% loss.

Local Markets

The JSE opened relatively flat this morning after a steady session of gains yesterday. The market is waiting for key US inflation data due out today before moving further. Of course, some profit-taking (especially in the prominent stocks) hasn’t helped matters but the slightly weaker rand is limiting losses. By noon, the All Share was trading 0.26%.

The rand fluctuated within a reliable range during the morning session, after a week of relatively volatile sessions. Mixed economic data throughout the week failed to give traders a firm sense of direction. Having closed in a strong position yesterday above R8 to the dollar, the currency lost a fraction against the dollar on open. The SA Reserve Bank’s repo rate decision certainly affected the upward momentum the rand was enjoying up to the announcement. By midday, a dollar cost R8.012.

The gold price improved marginally this morning as a cautious mood began to infiltrate equity markets. Disappointing US retail data saw equity markets pull back from previous sessions’ momentum. Many investors hedge their bets with investment in gold as a safe-haven asset. By noon, a troy ounce traded for $955.65.

International Markets

Equities in the US managed to creep upward on Thursday after the surprisingly favourable earnings figures posted by Wal-Mart Stores Inc boosted enthusiasm in trading circles. It’s positive 2nd-quarter earnings and promising outlook for the rest of the year helped to assuage woes over the disappointing government data on retail sales and joblessness (which still indicate weak consumer demand). Wall St were defiantly bullish in the face of this negative news and the Dow Jones closed 0.39% up whilst the Nasdaq finished 0.53% higher.

The Nikkei index closed nearly 1% higher to reach a 10-month pinnacle overnight. The surge was aided by evidence emerging from various corners that the global economy is indeed set to improve. However, ailing Chinese equity markets put up resistance against the upward movement. Once again, construction machinery manufacturers were amongst the biggest winners having received brokerage rating upgrades recently. Japan’s benchmark average closed 0.76% up.

Shares in Hong Kong managed to claw back nearly 0.2% by close early this morning after shedding over 1% earlier in the session. Encouraging earnings momentum, especially from selected goods exporters, prompted the return to positive territory. The Hang Seng closed 0.15% up this morning.

Persistent speculation over a possible bid from wealthy Asian investors or sovereign wealth funds for British property firms is leaving traders excited over the improved liquidity prospects and related benefits. British Land, Hammerson and land Securities (all from the property sector) gained significantly this morning. However, disappointing US retail data that pushed Wall St indices off their peak levels yesterday are prompting a cautious mood globally. By noon, the FTSE 100 was trading 0.14% in the green.

Share Price News

Richemont, of the Clothing and Footware sector, performed well this morning. By midday, a share traded for R21.40 (a 5.47% improvement). Also managing to attract volumes of investor interest was Merafe Resources Ltd of the Metals and Minerals sector. At noon, its shares traded for R1.66 each, marking a 3.75% gain.

Among the morning’s biggest losers was Sentula Mining Ltd of the Metals and Minerals sector. At midday, a share traded for R3.01 (a 9.06% decline). Also performing poorly during the morning session was Absa Group Ltd of the Banks sector. This comes on the back of issuing a lower than forecasted preference dividend. Its shares traded for R124.00 each by midday, reflecting a 1.59% loss.

Local Markets

The JSE rallied this morning as it tracked gains made overnight in US and Asian markets. News from the US Federal Reserve spurred hopes that the global recession may be drawing to a close. Exporters were particularly pleased as demand from the world’s largest consumer market is expected to recover in the upcoming months. By midday, the All Share was 1.71% in the green.

The rand recouped some its losses earlier in the week as the dollar lost some ground on trade data released earlier that reflected an increase in the US trade deficit. The emerging market currency is expected to make further gains as equity markets rally and investor sentiment turns bullish. By noon, a dollar traded for R7.97.

The oil price climbed higher overnight over renewed optimism that the worst of the global recession has passed. The US Federal Reserve indicated on Wednesday that the US economy is beginning to level out. This encouraging information counterbalanced the worrying inventory data for the world’s largest oil consumer. Hopes of an imminent economic recovery spurred optimism that demand would rise again. By midday, a barrel of Brent Crude was selling for $73.81.

International Markets

The US Federal Reserve announced on Wednesday that “economic activity is leveling out”. Many analysts were also encouraged by suggestions that emergency measures to stimulate the flow of credit shouldn’t be necessary in the near future. The Fed intends on completing its $300 billion Treasury purchases by October but no further debt-buying initiatives are in the pipeline. Equity markets responded positively to the Fed’s announcements and by close, the Dow Jones was up 1.30% and the Nasdaq 1.47% in the green.

Japan’s benchmark index crept towards its 10-month closing high overnight. These gains come on the back of US Federal Reserve’s suggestions that the US economy is on the road to recovery. Demand-sensitive exporters such as Advantest Corp led the way as equities rallied. Investors also focused on individual shares that had benefited from specific movements. Kawasaki Heavy and other manufacturers involved in making trains surged on reports that Vietnam would be using Japan’s bullet train technology to construct its high-speed railway system. The Nikkei eventually closed 0.79% in the green.

Shares in Hong Kong gained 2.08% overnight, recouping some of the losses made in the previous session. These movements were spurred by supportive comments from the US Federal Reserve as well as positive earnings momentum of late.

Equities in London opened higher this morning after equity markets in the US and Asia rallied overnight. Investors worldwide seem to be enthused by the suggestions of the US Federal Reserve that the US economy is leveling out. The mood was also lifted by news that the French and German economies had returned to growth in the second quarter, after a year of recession. Robust consumer and public spending (largely due to stimulus programs engineered by government) helped to create growth impetus. By midday, the FTSE 100 was 1.18% in the green.

Share Price News

Metorex Ltd of the Metals and Minerals sector managed to secure voluminous gains during the morning session as equity markets rally over excitement that the worst of the global recession may well be over. Exporters stand to benefit significantly as demand is expected to rise once more. By noon, its shares trade for R3.85 each (a 10.00% increase). Also performing well this morning was Merafe Resources Ltd of the same sector. At noon a share traded for R1.58, reflecting a 7.48% gain.

Sentula Mining Ltd, also of the Metals and Minerals sector, experienced a volatile morning after posting rather a worrying trading update. By midday, a share traded for R3.45, marking a 6.50% loss. Reunert Ltd of the Electrical Equipment sector also lost out this morning. By midday, a share cost R43.00 (a 2.27% reduction).

Local Markets

The JSE opened slightly lower this morning. Having tracked losses on Wall St and the cautious profit-taking in Asia, local investors appear to be following suit. Focus remains on the US Federal Reserve monetary policy outcome due out at 20:00 tonight whilst the local reserve bank’s interest rate decision looms as well. It was red across the board this morning and by midday the All Share was 0.85% down.

The rand remained fairly static during the morning session, lacking direction ahead of the interest rates outcome of Thursday’s Reserve Bank meeting. Having rallied in the last two months, global markets are enduring a bout of profit-taking and the rand is inextricably bound to these movements. Today attention remains focused on the Federal Reserve’s interest rate decision in the US; the Fed’s decision should give direction to both equity and currency markets. By midday, the rand traded at R8.15 to the dollar.

Gold stocks are hovering around the $945 mark as investors focus on the movements in equity markets after the interest rate decisions due out this week locally and in the US. As a safe-haven asset, gold is expected to reap the benefits of any cautionary market data that is released. At midday, a troy ounce cost $944.10.

International Markets

US stocks fell for the third consecutive session yesterday after a distinguished banking analyst warned that the sector’s key ratios and statistics have yet to improve. Richard Bove of Rochdale securities described a bleak outlook for the banking industry, forecasting that baking stocks would soon pull back from earlier gains. The reduction in wholesale inventories was larger than expected which also prompted concerns over the health of the economy. The Dow Jones closed 1.03% under whilst the Nasdaq finished 1.13% lower.

Japan’s benchmark index pulled back from 10-month highs reached recently. Much of the poor performance can be attributed to the surprisingly negative consumer and production data to come out of the US. Investors keenly await the outcome of the US Federal Reserve’s monetary policy decisions. Japanese traders followed the trend of booking profits from previous sessions and by this morning, the Nikkei average closed 1.42% lower.
Shares in Hong Kong fell overnight as investors booked profits voluminously. A sharp sell-off after the Shanghai bourse and the dire news coming out of the US served to encourage profit-taking. The benchmark Hang Seng dropped 3.03%, its largest single-session decline in three months.

Equities in London were weaker this morning as UK data releases this week are expected to dampen investor sentiment. The Bank of England’s quarterly inflation report is expected to downgrade forecasts for the performance of the UK economy whilst unemployment data is largely anticipated to reflect a sharp rise in the number of people out of work. Mining giant BHP Billiton also posted its first fall in earnings for seven years (a 30% decline in annual profits) but reassured investors that emerging market prospects were set to improve operations. By noon, the FTSE 100 was trading 0.08% in the red.

Share Price News

Mutual and Federal Insurance Company Ltd of the Insurance – Non Life sector managed to attract large volumes of trade this morning as investors retreated from resources and mining stocks. At midday a share traded for R17.70, reflecting a 2.91% gain. Anglogold Ashanti Ltd of the Gold Mining sector also fared well in the morning session. At midday, its shares cost R292.50 each marking a 0.86% improvement.

Tongaat Hulett of the Food Processors sector was among the morning’s biggest losers. This decline comes on the back of a JSE announcement earlier in the day that Anglo American Plc would be selling its shares in Tongaat to institutional investors. By noon, its shares were trading for R92.00 each (a 8.28% loss). Metorex Ltd of the Metals and Minerals sector saw volumes of trade withdraw this morning. By midday, a share traded for R3.46, marking a 6.23% decline.

Local Markets

Local equities weakened this morning as traders began to book profits from earlier sessions. The poor performance overnight on Wall St gave some direction as investor sentiment returned towards caution. The stronger rand is cushioning the losses though as resource stocks and miners declined this morning. By midday, the JSE All Share was trading 0.75% down.

The rand firmed against the dollar during the morning as investors await the Reserve Bank interest rate decision due out later this week. There is a valid expectation that the MPC will leave the repo rate at 7.5% amid concerns over inflation and double-difit wage increase demands. By midday, a dollar traded for R8.11.

The gold price gained slightly this morning, remaining near its 10-week closing low the previous day after the dollar made broad advancements. Traders keenly await the US Federal Reserve’s meeting outcomes on Wednesday. The Fed is expected to give the market suggestions over its assessment of the US economy. Gold, as a traditional safe-haven asset, could stand to benefit from these outcomes. At midday, the gold price had reached $945.55 per troy ounce.

International Markets

Equities in the US fell overnight as investors booked profits cautiously ahead of a number of economic indicators due out this week. Consumer spending data from the government as well as the Fed’s statement on interest rates are among the more meaningful data. The rising dollar also served to depress investors’ appetite for commodities priced in dollars. The Dow closed 0.34% under whilst the Nasdaq finished 0.4% in the red.

Japan’s benchmark Nikkei index gained for the 4th consecutive session overnight. However, the gains were smaller than modest as traders focus on the impending financial data to come out of the US later this week. Investors chose to focus on company-specific news instead of broader market news from the Bank of Japan and other such sources.

Construction stocks enjoyed improvements following an earthquake and storm that triggered mudslides. The Nikkei finished 0.58% up.

Shares in Hong Kong rose overnight to finish near a 12 month closing high. Key data releases from the Chinese government were more or less in line with expectations, an encouraging sign of a possible return to stability. The Hang Seng closed 0.69% in the green this morning.

Equities in London remained stable this morning, aided by news of an impending take-over bid in the financial sector. Friends provident received an improved take-over offer from Resolution to the tune of £1.86 billion. These advancements in the market come on the back of losses due to profit-taking the session before. The stability of the UK market is particularly encouraging given the downturn in US markets overnight. The FTSE 100 was trading 0.14% up by midday.

Share Price News

Arb Holdings Ltd, of the Electrical Equipment sector, fared well this morning. It managed to gain 5.26%to trade for R2.00 per share at noon. Kumba Iron Ore of the Metals and Minerals sector also performed positively despite pressure on resource stocks. By midday, a share cost R247.10 (a 5.01% improvement).

Mondi Ltd, of the Paper sector, lost ground this morning after an announcement of a major change to shareholding. At noon, a share cost R37.01, reflecting a 6.30% decline. Also among the losers was Mobile Industries Ord of the Shipping and Ports sector. By midday, a share traded for R1.57, marking a 5.42% decline.

Local markets

By midday, the JSE All Share had slid 1.70%, following US markets as Wall Street closed lower on Thursday ahead of non-farm payroll statistics, due later today.

The rand was trading at R8.11, weakening further against the dollar as investors worry about the mineworkers’ proposed strike at Eskom next week, which could interrupt electricity supply.

Gold was selling at $958.70 an ounce at midday, losing 0.45% as investors were cautious about buying the precious metal as a safe-haven asset when US jobs data could show an improvement in the economic situation.

International markets

The Dow Jones fell 0.27% and the Nasdaq lost 1% yesterday on concern about the US employment report due later today, and as investors booked profits after the recent rally.

The Nikkei index gained 0.23% this morning as several companies published better-than-expected earnings reports and investors bought up their stocks.

Chinese and Hong Kong stocks continue to be rattled by monetary policy worries that could hamper lending. The Shanghai index tumbled 2.85% and the Hang Seng lost 2.51%.

The FTSE 100 had slipped 0.95% by noon Johannesburg time, weighed down by losses in banks after Royal Bank of Scotland published weak 6-months results. Trade remains cautious before the release of US employment data.

Share price news

Delta EMD Limited in the electrical equipment sector rose to R9.95 a share at midday after three deals, a gain of 10.56%. The company released unaudited results this morning that announced a substantial improvement in earnings for the first half of the year. Also amongst the top movers up, DAWN Limited in the building and construction materials sector rose 8.73% to trade at R7.60 a share.

Farming and fishing investment company Afrocentric Investment Corporation fell to R3.01 a share, a loss of 19.73% by midday. Specialty chemicals company Freeworld Coatings Limited fell 5.02% after 59 deals to R8.70 a share.

Local markets

The JSE All Share had risen 0.18% by midday as gains in the oil and gas sector boosted the local bourse upwards. An absence of local data is likely to mean the All Share will take direction from international markets.

The rand was trading at R8.01 to the US dollar at 12:00, breaking through the R8 mark predicted by analysts.

Oil was selling at $74.75 a barrel, continuing its rally by rising 1.01%. Crude’s gains are currently motivated by a declining dollar.

International markets

On US markets, the Dow Jones lost 0.42% while the Nasdaq fell 0.91% yesterday after poor data from the services sector and private payrolls moderated hopes for economic recovery.

In Japan, the Nikkei average closed 1.32% higher after gains in automakers and commodity-related companies came after rumours of an extension for the US auto sales rebate, and rising copper prices.

In Hong Kong, the Hang Seng climbed 1.97% to reach its highest close in eleven months. Losses earlier in the day were offset by strong gains in China Mobile after rumours that it plans to list on the Shanghai index.

In Britain, the FTSE 100 had lifted by 0.77% as financial and banking stocks led the movement upwards after positive corporate results, and ahead of news from the Bank of England.

Share price news

Merafe Resources Limited in the metals and minerals sector gained 7.14% after a flurry of activity this morning, as 579 deals boosted the share price to R1.50 at midday. Anglo American Platinum Corporation Limited rose 7.84% after two deals to trade at R110 a share.

In the education and training sector, Adcorp Holdings Limited fell 2.63% after 37 deals pressured the share price down to R24.10 by noon. Assore Limited, also in the metals and minerals sector, lost 4.50% to trade at R506.20 a share after two deals.

Local markets

The JSE All Share had risen 0.7% by 12:00 after gains across the board with the exception of the gold mining sector. Companies in the oil and gas sector and basic materials shares led the movement upwards.

A US dollar cost R7.90 at noon, as the rand lost ground against the American currency. Analysts predict little other movement today given the lack of event risk and mixed economic data from overseas.

Oil had lifted by 0.95% to sell at $73.69 a barrel at midday as US inventories were lower than expected and the commodity recommenced last week’s rally.

International markets

The Dow Jones closed 0.36% higher while the Nasdaq inched up another 0.13% to reach its highest level since October last year. Despite fears of increasing unemployment, US consumer spending rose in June and economic data seems to confirm a slow recovery.

The Nikkei fell 1.18% this morning after Toyota reported its third quarterly loss in a row and investors booked profits after the Japanese index’s 10 month high yesterday.

The Hang Seng lost 1.45% and the Shanghai index slid 1.24% after a report that the China Banking Regulatory Commission may make informal requests to banks to raise capital adequacy ratios, thus tightening monetary policy in stages while it continues to appear loose. Investors worry that it will be difficult to select profitable shares due to the lack of transparency and uncertainty.

The FTSE 100 had edged up 0.21% as banking shares gained despite poor results from Lloyds Banking Group, overcoming losses in energy and mining shares.

Share price news

TWP Engineering consultants to the mining and minerals industries, TWP Holdings Limited rose 11.11% to trade at R6 a share at 12:00 after two deals. Cenmag Holdings Limited, whose subsidiaries supply electrical equipment gained 10% to cost investors R2.75 a share after one deal.

Investment company Lonrho Africa PLC fell to R2 after one deal sent the price tumbling by 19.68%. Shipping and ports company Mobile Industries slid 6.25% to trade at R1.50 a share at midday after one deal.

Local markets

The JSE All Share had fallen 0.55% by midday, opening lower after investors booked profits and weighed down by losses in the basic materials and gold mining sectors.

The rand was trading at R7.81 to the US dollar at 12:00, weakening slightly but remaining within its recent range.

Gold was selling at $954.15 an ounce, falling by 0.19% after reaching its highest level is seven weeks yesterday. Increasing risk appetite amongst investors led gains away from the precious metal.

International markets

Positive news from the manufacturing sector in the US boosted hopes of an economy recovery, and American equity markets rose accordingly. The Dow Jones finished 1.25% higher, while the Nasdaq closed 1.52% up yesterday.

Japan’s Nikkei average edged up 0.22% to reach its highest close in ten months this morning, as gains in exporter stocks came after positive manufacturing reports from the US which buoyed investor sentiment.

The Hang Seng lost 0.05% this morning, putting an end to a three-day rally after losses in mainland banking shares outweighed gains in HSBC. Rumours of tightening monetary controls in China still haunt investors on the Hong Kong index, though Beijing has denied such a move.

Britain’s FTSE 100 had fallen 0.68% after reaching its highest level for the year yesterday, after lower oil prices weighed on energy shares.

Share price news

Lonrho Africa PLC, a pan-African investment company, experienced a 100% increase in share price after three deals boosted the shares to R2.50 at midday. Also gaining was Alliance Mining Corporation Limited on the ALTX, who shares were trading at R3.49, up 7.38% after 24 deals this morning.

Shares in Great Basin Gold fell 10.26% to sell at R10.50 a share at 12:00. Oil company Oando PLC lost 6.42% in share price as shares tumbled to R5.10 after one deal.

Local markets

The basic materials and oil & gas sectors were strong gainers this morning, boosting the JSE All Share by 1.56% at midday on Monday. Encouraging the movement upwards were stronger metals and commodity prices.

The rand was trading at R7.74 to the US dollar at noon, gaining as the local currency continued to enjoy safe haven buying after Friday’s mixed economic news from the US.

Oil rose 4.64% to cost $72.20 a barrel, continuing Friday’s gains after positive Chinese economic data coupled with strong closes on US and certain Asian markets suggested the beginning of a global economic recovery.

International markets

On Friday, the Dow Jones edged up 0.19% but the Nasdaq lost 0.29% after mixed data confused investors. US government data reported a reduction in consumer spending, yet commodity prices rose after the GDP data was released.

The Japanese Nikkei inched down 0.04% this morning despite reaching its highest level in ten months. Investors booked profits, offsetting gains in automakers and tyre manufacturers.

The Hang Seng rose 1.14% to reach the Hong Kong index’s highest close in eleven months, after solid manufacturing statistics from China signalled economic recovery for the mainland.

The British FTSE 100 had lifted 1.55% by midday after banking, mining and oil shares rose after positive corporate results from HSBC and Barclays as well as higher metal and commodity prices.

Share price news

At midday, the top moving share belonged to Central Rand Gold Limited, which rose 11.36% to sell at R2.45 a share after three deals. Palabora Mining Company Limited in the non-ferrous metals sector rose 5.56% to trade at R76 a share after four deals.

Investment bank Brait SA lost 9.68% by midday after five deals to sell at R16.71 a share. Meanwhile electrical equipment company South Ocean Holdings Limited fell to R1.25 a share after three deals pressured the share price down by 7.41%.