The JSE all-share index is trading 0.22% lower in tentative trade ahead of this afternoon’s rate decisions out of the U.K and Europe.
The resource index has given up 1.2%, the industrial index is flat on the day, while the financial index has added 0.57%.
In company news: Famous Brands and Shoprite have teamed up in a franchise agreement in which Debonairs (owned by Famous Brands) will open its first restaurant in Angola.
Shoprite will become the master franchisee, operating and managing the Debonaires pizza brand in the country.
In currencies news the Rand is trading at R11.17 to the Dollar, R13.76 to the Euro and R17.52 to theBritish Pound. In commodities, Gold is trading at $1,204/oz., Platinum at $1,234/oz. and Brent Crude at $70/barrel.
In the U.K we are expecting the interest rate and asset purchase facility decisions at 2pm, followed by the MPC rate statement. In Europe, the minimum bid rate decision is expected at 2:45pm, followed by an ECB press conference at 3:30pm. While in the U.S. weekly unemployment claims are also expected out at 3:30pm
Chart of the day
Shoprite is the chart of the day. The price of Shoprite has started to break down following a double top formation. The pattern is marked with the blue “M” shape and warns of a short-term downside move reversing the preceding upward trend. The height of the pattern projected from the breakout level at 16250 predicts a downside target of 15300.
Shoprite Holdings Ltd
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