The JSE All Share index is exaggerating global market weakness today having given up more than 2% in morning trade.Â
A sharp fall in copper overnight as global inventories of the metal have notably increased this year fueling and demand concerns which are compounded by slowing Chinese economy.
The resource index bears the brunt of todays decline having given up 5.2% although the Industrial and Financial indices are also weak having declined 1% and 0.85% respectively
In Company news Massmart sales update for the 52 weeks ending Decmeber 2014 indicated that total sales increased by 10.4% and comparable store sales by 7.5% vs the prior years comparative.
Shoprite Holdings released an operational update for the 6months ending December 2014 in which turnover increased by around 12.5%Â while growth on a like for like basis was 5.1%.
Northam has confirmed industrial action commencing last night at its Zondereinde Mine in limpopo as workers embarked on an unprotected strike, although the smelter operations are unaffected by the industrial action.
Northam is our chart of the day
General resource weakness and industrial action have seen the share price decline more than 4% in morning trade however the larger picture appears a little more bullish. The price has formed an inverse head and shoulders formation labelled with the L, H and R on the chart.
This pattern alludes to the preceding downtrend being reversed and projects an upside target at R41 a share. From current levels traders may consider a close below recent support at 3630 as a failure of the bullish indications.
The rand has resumed its recent weakness to trade at R11.6 to the dollar, R13.60 to the Euro and, R17.54 to the British Pound.
In commodities Gold is trading at $1227/oz, Platinum at $1232/oz, and Brent Crude at $45.94/ Barrel.
Retail trade sales for November 2014 measured in real terms increased by 2.6% year on year and in the U.S. we are expecting m/m Core Retail and Retail sales data out at 3:30pm.
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