The resource index is leading the days gains having added 1.57% while the industrial index and financial indices have added 0.5% and 0.1% respectively.
In Company news The Spar Group Ltd released a trading update guiding that in the 17 week trading period ending 24 January 2015, Group sales increased by 38,3%. Excluding the impact of the BWG Group (SPAR Ireland), Group sales in South Africa increased by 8,7%, with internally measured price inflation of 5,9%. Sales in comparable stores grew by 8,1%.
The Pioneer Food Group release a voluntary trading update stating that group revenue for the three months was up 7%. Volume growth realised in major categories was pleasing, with the exception of the wheat and rice categories. The international business achieved fair beverage volume growth in Africa and positive leverage, however, the dried fruit performance was somewhat constrained due to competitive global pricing.
Anglo American prelimenary results for FY 2014revealed the following salient features:
– Significant operational improvements amid sharply lower commodity prices;
– Delivered on all major commitments for 2014 – operational performance, project delivery and portfolio restructuring targets;
– Strong operational performance across every business (4% production increase on Cu Eq. basis(1));
– Group underlying EBIT(2) of $4.9 billion, a 25% decrease due to sharply weaker commodity prices ($2.4 billion(3) underlying EBIT impact), partially offset by weaker producer country currencies ($1.3 billion positive impact to underlying EBIT) and increased production and sales volumes;
– Special items after tax and non-controlling interest include commodity price-driven impairments of $3.9 billion, including $3.5 billion at Minas-Rio;
– Net debt of $12.9 billion as at 31 December 2014 (2013: $10.7 billion), with $15.1 billion of liquidity; and
– $1.7 billion of bonds maturing in 2015 and $1.6 billion maturing in 2016.
The rand is trading at R11.71 to the dollar, R13.39 to the Euro and,R18.03 to the British Pound.In commodities, Gold is trading at $1226/oz, Platinum at $1201/oz, and Brent Crude at $60.28/ Barrel.
In Europe, German preliminary GDP data for the fourth quarter showed 0.7% q/q growth, well ahead of consensus which predicted a figure of 0.3%.French GDP data showed 0% growth, although ahead of expectation which had anticipated a 0.1% contraction. Flash GDP data from the European Union came in at +0.3%.
In the US we are expecting Preliminary Consumer Sentiment Data at 5pm.
