The JSE all-share index is trading 1.18% firmer today, led by a rebound in resource counters which sees rand weakness offsetting depressed commodity prices.
The resource index has added 3%, the industrial index 0.91% while the financial index is unchanged in trade today.
In company news: An ArcelorMittal operational update for the quarter ending September 2014 showed liquid steel production to be 25% lower than the corresponding period last year.
Local sales were 3% lower while export sales decreased by 19%. WG Wearne limited reported a 8.7% increase in gross profit, a 23% increase in operating profit and an 8.7% increase in EBITDA in the interim period against the prior years’ comparative.
In currencies trade the Rand is weaker after the credit ratings downgrade by Moody’s Rating agency and is currently trading at R11.31 cents to the Dollar, R14.01 to the Euro and R17.89 to the British Pound. In commodities, Gold is trading at $1,144/oz., Platinum at $1,195/oz. and Brent Crude at $83/barrel.
At 3:30pm we are expecting non-farm employment change and the unemployment rate figures out of the U.S., as well as comments by Federal Reserve Chairperson Janet Yellen at 5:15pm South African time.
Chart of the day
Richemont is the chart of the day. Interim results revealed slow sales growth of 2% over the period with operating profit declining by 4% against the comparative period. Profit for the period declined by 23% largely due to currency hedging losses.
Although lacklustre, the results witnessed initial weakness catalysing elevated buying within in the share with the net effect equating to strong gains within the share price. The share price now moves firmly towards gap resistance at R100.
Cie Financiere Richemont (SA)
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
