SENS at a glance
IG Markets: Midday market update; BHP, Shoprite and Discovery
The JSE all-share index is trading 0.2% higher in morning trade outperforming its global counterparts, as the market reacts to a positive GDP update and local earnings updates.
A strong move in BHP Billiton sees the resource index leading today's gains having added 0.9% in morning trade. The industrial and financial indices are flat on the day.
In company news BHP Billiton interim results revealed headline earnings to have dropped 39% even though there was a reduction in Capex (Capital Expenditure) spend and improved productivity, while net debt was reduced witnesses the company's balance sheet remaining relatively strong. A dividend of 62c (US) was declared.
Imperial Holdings interim results showed revenue to have increased 9%, although operating profit fell 9%. Cash flow from operating activities increased by 73% and an interim dividend of 350c per share was declared.
EOH Holdings released a trading statement guiding that it expects HEPS to be between 20% and 30% higher than the comparative period. Discovery Ltd interim results saw normalised headline earnings increase 20%. The company also announced that it plans to raise up to R5bn through a rights issue to finance further expansion. The new shares are offered at R90 each.
Shoprite Holdings saw turnover increase 12.5% and trading profit 11.6% in its 6-month trading period. The dividend per share was increase by 8.3% to 143c. Mondi full-year results highlighted underlying operating profit to have increased by 10% and underlying earnings 13% following a strong performance from all business units.
The Rand is trading at R11.65 to the Dollar, R13.19 to the Euro and R18.00 to the British Pound. In commodities Gold is trading at $1,197/oz., Platinum at $1,162/oz. and Brent Crude at $58.35/barrel.
In South Africa, 4th quarter GDP data showed better than expected growth of 4.1% q/q and 1.3% y/y. In Europe, final CPI y/y has been scheduled for 12pm and ECB president Mario Draghi is set to speak at the official unveiling of the 20 Euro banknote in Germany at 4pm. In the U.S., CB consumer confidence data is scheduled for 5pm as is the Federal chairperson Janet Yellen's testimony on the semi-annual monetary policy report.