Local trade was subdued with the index trading flat prior to GDP numbers at 11:30, which came in below estimates at 1% year-on-year and 0.6% quarter-on-quarter.
Indicative of the pressure felt by the industrial action that took place in the mining and metal sector, in which they showed negative growth.
In Company news, Aveng released its annual results for the year ending 30th of June 2014. Revenue was at R53 billion increasing 2% in the year. Net operating earnings were up 20% to R784 million. Headline Earnings Per Share (HEPS) decreased by 10% to R421 million. No dividend was declared.
Pinnacle shares rocketed 43% yesterday, and have climbed a further 4.59% today on the back of news that bribery charges brought against its executive director Takalani Tshivhase had been dropped. A union official from MTN has stated that the company plans to cut 850 managerial staff as the mobile powerhouse deals with slowing revenue and tough competition in the local market.
In currencies today the rand is trading stronger against the majors at R10.68 to the Dollar, R14.10 to the Euro and R17.72 to the British Pound. Commodities are up in morning trade with Gold trading at $1,286 per ounce, Platinum at $1,425 per ounce and Brent Crude Oil is at $102.89 per barrel.
In economic news today we are expecting durable goods orders out of the USA at 14:30, along with consumer confidence for August at 16:00 local time.
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