The JSE all-share index is trading 0.73% higher in morning trade as weaker U.S. data yesterday has tempered concerns around the nearing of monetary tightening out of the world’s largest economy.
In company news, BHP Billiton has urged shareholders to vote in favour of the proposed demerger of the South32 assets, which is said, will streamline the company’s operations and achieve functional cost reductions going forward.
The total once-off costs of the demerger is estimated at $738m. In the proposed demerger, eligible BHP shareholders will receive one South32 share for every BHP Billiton share held on the applicable record date.
Clover interim results show revenue to have increased 7.9% over the period while Headline Earnings Per Share (HEPS) increased by 41.3%.
The Rand is slightly firmer trading at R12.38 to the Dollar, R13.11 to the Euro and R18.30 to the British Pound. In commodities, Gold is trading at $1,154/oz., Platinum at $1,101/oz. and Brent Crude at $53.5/barrel.
On the economic front, we are expecting building permits and housing stats data out of the U.S. at 2:30pm.
Chart of the day
BHP Billiton is the chart of the day. The price of the security looks to be reversing off support at 25550, favouring a rebound towards resistance at 27600.
A close above this level would consider the short-term high at 29500 as the next resistance target. A close below key support at 25550 would indicate the failure of the bullish reversal and a move towards support at 23360 would be considered.
BHP Billiton Plc (SA)
