Midday market report 15 August 2014
The JSE all-share index is trading 4 tenths of a percent higher in morning trade, following stronger international markets.
https://www.youtube.com/watch?v=FdnNZ_EDYLU
Local industrial counters are trading 0.13% higher, resources have added 1 and a half percent and financials are 0.63% lower.
In company news, Sanlam released a trading statement for the six months ended 30 June 2014, reporting that Headline Earnings Per Share (HEPS) and Diluted Earnings Per Share are expected to exceed the previous reading by between 25 and 30%. Normalised HEPS are also expected to increase by between 25 and 30%, full results will be released on 4 September 2014.
This morning, Lewis Group released an annual general meeting trading update. The company reported that the four months ended July 2014 were very challenging. Debtor costs for the period increased by 30% and merchandise sales declined by 0.8% compared to the corresponding period last year. Revenue for the period grew by 2.3% with the credit/cash sales mix at a similar level to last year. Plans are still on track to open 20 new stores in the current financial year.
A trading statement from Implats revealed that HEPS for the financial year ended 30 June 2014 is expected to be between 82 and 98 cents, between 70% and 75% lower than the previous period. Basic Earnings Per Share are expected to be between 0 and 3 cents, which is between 98% and 100% lower than the previous comparable period. Audited year-end results will be released on 28 August 2014.
The rand is trading at R10.54 to the dollar, R14.11 to the euro and R17.59 to the British pound. Looking at commodities, gold is trading at $1,313 per ounce, platinum at $1,458 per ounce and brent crude oil is at $102.28 per barrel.
In economic news, British revised quarterly GDP stayed unchanged at 0.8%. US PPI month-on-month figures will be published at 14:30 and we expect US Prelim University of Michigan Consumer Sentiment figures out at 15:55 this afternoon.