Midday market report

After strong gains yesterday the JSE all-share index is trading 0.23% lower in morning trade following weaker European markets due to corporate earnings misses, and trading tentatively ahead of this afternoon’s mini-budget speech
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After strong gains yesterday the JSE all-share index is trading 0.23% lower in morning trade following weaker European markets due to corporate earnings misses, and trading tentatively ahead of this afternoon's mini-budget speech.

https://www.youtube.com/watch?v=BJMmqpFVZt4&feature=youtu.be

The resource index is leading today's decline trading 0.85% lower, while industrials are flat on the day and financials have added 0.15%.

In company news; British American Tobacco interim results revealed the Net Asset Value (NAV) per share to have increased 8.8%. The compound annual growth rate in NAV per share, for the three years to September 2014, now amounts to 23.8%.

A Sibanye Gold Ltd operating update notice says that the 3rd quarter update for the company will now be released on 28 October rather than the 23rd of October. The forecast for production for the year ending December 2014 remains unchanged.

In currencies, the Rand is slightly firmer today trading at R11.03 to the Dollar, R13.99 to the Euro and R17.66 to the British Pound. In commodities, Gold is trading at $1,247/oz, Platinum at $1,267/oz and Brent Crude at $86.42/barrel.

In South Africa the headline CPI annual inflation rate in September 2014 was 5.9%, which is 0.5% lower than the corresponding annual rate of 6.4% in August 2014. We are expecting the first mid-term budget speech from new finance minister Mr. Nhlanhla Nene at 2pm.

The public will be hoping to see some guidance around funding deficits relating to SAA and Eskom, as well as plans to help reduce the current fiscal deficit and reduce government debt relative to GDP. In the U.S. we are expecting month-on-month core CPI and CPI data out at 2:30pm (SA time).

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