By Shaun Murison
The JSE All Share index is trading 1% lower in morning trade dragged lower by the resource sector as BHP Billiton and Sasol experience significant declines following the outcome of yesterdays OPEC meeting.
The resource index has fallen 4.52% while industrials are flat on the day and financials add a third of a percent.
In company news, African Oxygen Ltd better know as Afrox released a business update in which the company has guided that it has initiated a cost reduction program aimed at improving profitability in the current depressed market environment.
The options considered in this process include reducing overheads, streamlining management, reviewing the geographical footprint, distribution network as well as business and product portfolios.
It is the last day to trade for dividends on the following shares:
- – Investec;
- – Acucap Properties;
- – Adcorp Holdings;
- – Arrowhead Properties;
- – Coronation Fund Managers;
- – Famous Brands;
- – Invicta Holdings;
- – Life Healthcare;
- – Mediclinic;
- – Raubex; and
- – The Spar Group.
In currencies news the rand is trading at R11.02 to the dollar, R13.75 to the Euro and, Â R17.30 to the British Pound. In commodities, Gold is trading at $1183/oz, Platinum at $1218/oz and Brent Crude at $72.86/ Barrel
Yesterdays conclusion to the OPEC meetings after the bell has seen the major oil exporters deciding to keep current production levels of the commodity unchanged.
The chart of the day is Sasol. Following the OPEC meeting Sasol has found itself one of the largest decliners on the Jse today. The share price has followed the underlying commodity price lower and is now trading around 7% lower.
The chart would suggest that R470 is a key level support, which if broken would consider the next level of historical support at R450.
Local trade balance data showed an unexpected widening to a deficit of R21.3bn in October 2014. Private sector credit extensions increased to 9.06% y/y in October from 8.74% in September. The total credit rose 10.46% y/y in October 2014.
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