IG Markets: Midday market update, 10 February

Source: Bloomberg

The resource index is trading 0.25% lower, the industrial index 0.1% higher and the financial index is unchanged.

In company news, Kumba Iron Ore's year-end results have reflected a 29% drop in Headline Earnings Per Share (HEPS), following an average price drop of 28% in iron ore export prices.

Sun International released a trading statement in which it has guided that it expects a 155% to 165% increase in earnings and a 10% to 15% increase in headline earnings. The difference between Earnings Per Share (EPS) and HEPS is largely attributable to the profit realised from the sale of a significant portion of the group's shareholdings in the group's operations located in Botswana, Lesotho, Namibia and Zambia.

Aquarius Platinum Ltd has advised that it has entered into an agreement to sell the entire interest in the Everest mine and related mining and processing infrastructure and immovable properties (Everest) toNortham Platinum Ltd (Northam) for an aggregate consideration of R450 million, payable in cash.

Mondi has guided that it expects EPS for the year-ended 31 December 2014 to be within the ranges shown below:

Basic EPS (euro cents) 96-99 (2013 79.8), increasing between 20% and 24%
Basic HEPS (euro cents) 98-101 (2013 91.3), increasing between 7% and 11%
Basic underlying EPS (euro cents) 106-109 (2013 95.0), increasing between 12% and 15%

The Rand is trading at R11.55 to the [currencies:usdzar|Dollar], R13.07 to the Euro and R17.61 to the British Pound. In commodities Gold is trading at $1,241/oz., ]commodities:pl|Platinum] at $1,219/oz. and Brent Crude Oil at $57.50/barrel.

In South Africa manufacturing production and sales data is expected at 1pm. In China Consumer Price Index (CPI) data showed inflation to have slowed to 0.8% y/y while Producer Price Index (PPI) data showed a 4.3% deflation at a factory level y/y. In the U.K. manufacturing production is expected at 11:30am.

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IG Markets: Midday market update, 10 February

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