Midday market update 26 Nov

By Shaun Murison

The JSE all-share index is trading 0.22% lower in what has been lacklustre trade.

The resource index is trading 0.2% higher, financials 0.4% lower and industrials 0.3% lower.

In company news: Basil Read trading update, HEPS for year expected to be at least 20% lower.

Alexander Forbes HEPS is expected to be between 222% and 244% higher compared to the previous corresponding reporting period's loss of 9 cps. The significant increase in the earnings per share measurement is largely due to the changes in capital structure and the related effect on the finance costs.

Bell Equipment has withdrawn its previous cautionary as the negotiations referred therein have subsequently been terminated. The Huge Group's interim results have shown HEPS to have increased by 51.5%, while the company's NAV increased from 238.63c per share to 278.55c per share.

In currencies news the Rand is trading at R10.96 cents to the Dollar, R13.66 to the Euro and R17.22 to the British Pound. In commodities, Gold is trading at $1,197/oz., Platinum at $1,220/oz. and Brent Crude at $78.18/Barrel.

U.K.'s second estimate of GDP data q/q showed q/q growth of 0.7% which was in-line with analyst forecasts. At 3:30pm today we are expecting m/m core durable goods orders and weekly unemployment claims data out of the U.S.

Chart of the day

MMI Holdings is our chart of the day. The company released a 3 months trading update in which total present value of premiums increased by +30% and recurring premiums from new business increased by +22%

The market has found favour with the news as the share price breaks out of its short-term consolidation and moves into new high territory. The height of the consolidation projected predicts an upside target of 3250.

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