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IG midday market update 9 December
The JSE all-share index is trading 1.1% lower in trade today following weaker global markets.
https://www.youtube.com/watch?v=v4-LspeloF4&feature=youtu.be
In particular the Shanghai composite, which fell nearly 5.5% after the Chinese government tightened collateral rules for short-term loans.The resource index is leading today's decline having given up 2.1% followed by the financial index which is 0.94% lower and the industrial index which has declined 0.7%.
In company news: Impala Platinum released a trading statement guiding that it expects full-year headline earnings per share to be at least 20% lower than the previous year's comparative. A further announcement will be made once the board of directors has a reasonable degree of certainty in forecasting the exact range expected for headline earnings.
Hulamin released a revised trading statement in which it has guided that earning per share are expected to have decreased by between 126% and 129%, while headline earnings per share are expected to have increased by between 96% and 116%.
In currencies news the Rand is trading at R11.49 to the Dollar, R14.19 to the Euro and R17.97 to the British Pound. In commodities, Gold is trading at $1,205/oz., Platinum at $1,234/oz. and Brent Crude at $66.6/barrel.
Chart of the day
Brent crude is the chart of the day. Today's initial decline saw the price of brent crude trading at its worst level since September 2009, a historical level of support. Should this level not hold, the next historical level of support is considered at $59/barrel. Local mining production decreased by 1.1% y/y in October 2014, with the largest negative growth rate recorded for Platinum Group Metals (PGMs) and copper. Iron ore was a significant positive contributor.
Manufacturing production increased by 2.2% in October 2014 from October 2013. This was mainly due to higher production in the motor vehicles, parts and accessories division. In the UK manufacturing production data showed a 0.7% month-on-month decline.