The resource index is trading 1.66% lower as China revises the country’s growth target to 7% fuelling further demand concerns for the commodities.
The financial index is 1.1% higher led by a 5% gain in the Standard Bank share price after the company released full-year results. The Industrial index has added 0.4%.
In company news, Sanlam full-year results saw normalised HEPS up 3% new business increase by 18%, while the return on group equity per share was 18.5%.
RMI Holdings interim results showed normalised earnings to have increased by 14%, the dividend per share was increased 13% and the company’s market value increased by 49% over the period.
Exxaro full-year results saw HEPS -6%, final div -15% at 210c per share. Standard Bank increased headline earnings per share by 1% and its final dividend offering by 12% in its financial year ending December 2014. Return on equity was reported to be 12.9% over the reporting period. Standard Bank is also the chart of the day.
The Rand is trading at R11.77 to the Dollar, R13.00 to the Euro and R17.95 to the British Pound. In commodities, Gold is trading at $1,200/oz., Platinum at $1,180/oz. and Brent Crude at $60.7/barrel.
On the economic front, we awaiting the UK monetary policy committee’s rate statement at 2pm, the Eurozone’s rate announcement at 2:45pm and the ECB press conference at 3:30pm. In the U.S. weekly unemployment claims are expected at 3:30pm.
Chart of the day
The share price has rebounded sharply out of oversold territory from the recent short-term share price decline. The price has moved on strong volume to find resistance at 15770 a break of which would favour a retest of the recent high at 16100.
Standard Bank Group Ltd
