IG: Midday market update, 4 February
The JSE all-share index has given up 0.5% in morning trade, as our market gives back some of its exceptional gains yesterday particularly in the resource space.
The resource index has given up 1% while the financial and industrial indices have declined 0.6% and 0.4% respectively.
In company news, Vodacom released a quarterly update in which group revenue was noted as decreasing by 1.1% while service revenue was down 2.7% with the 50% cut in mobile termination rates negatively impacting both figures.
ArcelorMittal reported that it expects the loss per share to be 92% to 94% less than in the prior year, mainly due to an impairment charge in 2013 not present in the current reporting period.
The Rand is trading at R11.41 to the Dollar, R13.05 to the Euro and R17.31 to the British Pound. In commodities Gold is trading at $1,264/oz., Platinum at $1,236/oz. and Brent Crude at $56.5/barrel.
On the economic front, UK services PMI came in ahead on expectation with an index reading of 57.2. In the U.S. we are expecting ADP non-farm payroll data out at 3:15pm and ISM services PMI data at 5pm.
Chart of the day
Vodacom is also the chart of the day. The quarterly update witnessed a decline in the company's share price from overbought territory, as well as the top of the large range. The next level of support within this range is considered at R130 a share, a break of which could see a move into the lower 120's.
Vodacom Group Ltd