The JSE all-share index is trading 0.69% lower following mostly weaker global markets which digest the impact of yesterday’s decision by the Swiss National Bank to abandon the pegging of the Swiss franc against the Euro.
The industrial Index is 1.42% lower and the financial Index 0.23% lower, while the resource index bucks the trend having added 1.13% in trade today.
In company news; Invicta released a finalisation announcement regarding a special dividend to ordinary shareholders. The company has now received formal approval for the special dividend of 2024c per ordinary share from the South African Reserve bank.
Gold Fields released a production and cost update for the year ended 31 December 2014. The company expects attributable gold production over the period to be approximately 2.22m ounces with an all in sustaining cost of $1060/oz. Northam has suspended operations at its Zondereinde Mine to secure safety and security of employees and company assets while the unprotected strike action which commenced on 13 January 2015 persists.
The Foschini Group has entered into an agreement to acquire c.85% of Poppy Holdco Limited. trading as Phase Eight. Phase Eight was established in 1979 and operates as a retailer of clothing, footwear and accessories for women. The acquisition of Phase Eight is at an enterprise value of £238m (R4,353m) with an equity value of £159.2m (R2,912m) after taking into account net debt and related adjustments. TFG believes that the product and value offering of Phase Eight will combine exceptionally well with TFG’s current brands, with the store and concession portfolio creating a potential platform for the expansion of TFG brands internationally.
The Rand is trading at R11.54 to the Dollar, R13.37 to the Euro and R17.55 to the British Pound. In commodities Gold is trading at $1,257/oz. Platinum at $1,254/oz., and Brent Crude at $49.71/barrel.
In Europe final CPI data showed further deflation y/y of -0.2%, although the figure was in-line with consensus estimates. In the U.S. we are expecting m/m CPI and Core CPI data out at 3:30pm, as well as Preliminary UoM Consumer Sentiment data at 4:55pm.
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