SA Midday Market Report 14 August 2014
The JSE all-share index is trading 1 tenth of a percent lower in morning trade led by weaker industrial counters which have given up a third of a percent, while resources have added 0.1% and financials are 0.17% lower.
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In company news, Northam Platinum year-end results showed sales revenue up 20.8%, operating costs increased 25.1% while operating profit declined 89%. Sun International trading statement shows that EBITDA is expected to have increased 5% for the year, with HEPS growth expected between 23% to 28% lower than prior year.
Standard Bank interim results showed lacklustre headline earnings growth of 2%, which were negatively impacted by discontinued global operations. The company has increased the interim dividend offering by 11% to 259c per share.
The rand is trading slightly firmer at R10.56 to the dollar, R14.13 to the euro and R17.62 to the British pound. Looking at commodities, gold is trading at $1,310 per ounce, platinum at $1,463 per ounce and brent crude oil is at $104 per barrel.
In economic news, local mining production decreased by 5.7% year-on-year in June 2014, with platinum group metals unsurprisingly showing the largest negative growth rate (-37.2%). Wholesale trade sales in South Africa increased by 3.2% year-on-year in June 2014.
In Europe preliminary GDP data showed zero growth in France and a 0.2% contraction in Germany quarter-on-quarter. In the US weekly unemployment claims are scheduled for release at 14:30 local time.
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