This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
IG Midday market update 10 December
The JSE all-share index is trading 0.53% higher in morning trade today with, the resource index leading the overall charge up by 0.59%.
https://www.youtube.com/watch?v=6SsNvWOxkZw&feature=youtu.be
In company news: Anglo American announced it aims to reduce its workforce by over 60 000 staff by 2017 through restructuring, in a move towards further mechanisation. A sale of assets including platinum, coal and iron ore ranging from South Africa to Australia is also being considered and prepared.
Beleaguered local operator SAA intends to cancel a number of routes and take on a potential strategic equity partner in the likes of Etihad Airways. This coming after a R5 billion state guarantee was already issued to the company, which came after it made a R1.17 billion loss for the previous financial year ending March 2014.
Taking a look at currencies trade today the Rand is trading at R11.47 to the Dollar, R14.21 to the [currencues:eurzar|Euro] and R17.99 to the British Pound. In commodities trade, Gold is trading at $1,231/oz., Platinum at $1,253/oz. and Brent Crude at $65.91/barrel.
In economic news out this morning, China posted lower than expected CPI and PPI numbers at 1.4% and -2.7% respectively. In local news, South African CPI data came in at 5.8%, 0.1% lower than previously.
Chart of the day
The Chart of the day is on Hulamin Ltd after the company announced that it expects significantly higher earnings. HEPS are expected to be 96% to 116% higher. In the chart, we can see what has been a break of the neckline on an inverse head and shoulders after a preceding downward trend.
The confirmation of the move came on the back of a large expansion of volume, confirming the reversal in trend and break of the neckline at the right hand shoulder. The projected target being 741cents.
Hulamin Ltd