Midday market update 27 November

The JSE all-share index is trading 0.3% in relatively quiet trade impacted by U.S.markets being closed for thanks giving holiday.

The resource index has added 0.7%, while industrials and financials have both added around 0.2% in morning trade.

In company news: Interim results from Esor Ltd highlighted that operations had generated R38.7m in cash and the company’s order book now sitting at R2.4bn. Revenue declined 22.2% with the loss after tax increasing by 61.6%.

SABMiller, Coca Cola and Coca- Cola SABCO have agreed to combine bottling operations in Southern and Eastern Africa for their non-alcoholic ready to drink beverages. The new operation will be called Coca-Cola Beverages Africa.

African Bank Limited has said that the company has received an unsolicited offer to selected reference shareholders by Deep Value investments. Abil has said that the offer does not relate to the resolution plan referred to by the SARB in August this year.

In currencies news the Rand is trading at R10.95 cents to the Dollar, R13.66 to the Euro and R17.25 to the British Pound. In commodities, Gold is trading at $1,195/oz., Platinum at $1,215/oz. and Brent Crudeat $76.20/Barrel.

Producer Price index data for October 2014 showed annualised inflation for final manufactured goods to be at 6.7%. All eyes are on today’s OPEC meetings to see whether these countries will look at changing current production levels as oil remains under pressure.

Chart of the day

The price of Brent Crude is our chart of the day. Here we can see that year to date the commodity price has tumbled around 28%. In the short term we are seeing a continued decline as markets anticipate that near term production increases may be announced later on today.

At 1:30pm ECB President Mario Draghi is set to address the public about the economic outlook for Europe.

27112014 Brent Crude Oil

Brent Crude

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