IG Markets: Midday market update, 19 February

The JSE all-share index is trading 0.4% lower in morning trade, following European market weakness as pressure mounts surrounding the concussion to a Greek bailout deal, with the current deal in place nearing an end.

The resource index is 0.8% lower, the financial index 0.3% lower while the industrial index has added 0.05%.

In company news, Village Main Reef‘s quarter, ending December  2014, saw cash operating profit increase 15%, profit before tax increase 15% and Headline Earnings Per Share (HEPS) from continuing operations increased +13.95%.

DRDGold half-year results saw gold production up 6% with all in sustaining costs down 5% to $1,194/oz. Operating profit was up 5% and EBITDA grew 59%. Remgro has declared a gross cash dividend for the interim period of 169c per share.

The Rand is trading at R11.56 to the Dollar, R13.22 to the Euro and R17.87 to the British Pound. In commodities Gold is trading at $1,215/oz., Platinum at $1,179/oz. and Brent Crude will cost you $58.83 a barrel.

Wholesale trade sales in South Africa at constant prices decreased by 2.6% y/y in December 2014. In the U.S. we are expecting weekly unemployment claims at 3:30pm and Philly Fed Manufacturing Index data at 5pm.

Chart of the day

Sibanye Gold‘s 6 months period ending Dec 2014 saw production increase 13% with all-in sustaining costs at $1,069/oz. a 12 months final dividend of 62c was declared bringing the total div to 112c per share. The share is also the chart of the day.

The price has been in a trading range for the short-term and looks to have reversed off support targeting the resistance of the range at 3250. The move is in-line with the longer-term uptrend in place.

19022015 Sibanye Gold

Sibanye Gold Ltd

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