Get started

Lester_davids

J200 Market Commentary: Global Equities Down But Off The Lows Tuesday saw another down day across global markets as the sellers remained in control for much of the session on the JSE, across Asia as well in Europe as contagion and investor nervousness kept fingers on the selling button. On the Top 40 index, only 3 out of 40 shares closed in the green, this being British American Tobacco, Anglogold Ashanti and Anglo American Platinum while the downside was lead by Aspen Pharmacare, Kumba Iron Ore (which provided a muted production and sales report), Naspers and Sasol which was lower as oil prices declined sharply following an announcement by Saudi Arabia to make up for any supply disruptions with higher output. Also adding pressure on the downside were financial services shares such as banks which was down by 2.6%. In Europe, stocks ended in the red with the DAX, FTSE100 and CAC40 closing lower by 2.17%, 1.24% and 1.69% respectively while the broader EuroStoxx 50 shed 1.50%, lead lower by Bayer which declined by 9.52%. In the commodities space, Gold experienced some late-afternoon selling as US Futures rose, leaving the safe-haven with a lack of bids, while Brent Crude Oil this morning is pairing it's losses following a nearly 5% decline for the previous session. This morning in Asia, stocks are on the rise as a "recovery" on Wall Street helps to lift sentiment. Tencent is higher by 1.22%. Today, the major focus locally will be the Medium Term Budget Policy Statement (MTPBS), presented by Finance Minister Tito Mboweni in Parliament. JSE Major Sectors Resources 10 -1.66% Industrial 25 -2.42% Financial 15 -2.22% ________________________________________ Company News Kumba Iron Ore Limited production and sales report for the third quarter ended 30 September 2018 Kumba Iron Ore Limited production and sales report for the third quarter ended 30 September 2018 Kumba continued to improve on safety and delivered a solid operating performance, while maintaining production and sales volumes in line with guidance. Throughout this report, production and sales volumes referred to are 100% of Sishen Iron Ore Company Proprietary Limited (“SIOC”), and attributable to shareholders of Kumba as well as the non-controlling interests in SIOC. Overview: • Safe production ensured Kumba remained fatality free and continued to improve on multiple safety metrics. • Production volumes reduced by 9% to 10.5Mt as planned, to offset elevated stock levels arising from rail constraints in H1 2018. • Export sales decreased by 10% to 9.7Mt as a result of scheduled refurbishment by Transnet. Total production volumes decreased by 9% to 10.5Mt (Q3 2017: 11.5Mt) as planned, to offset elevated stock levels at Sishen and Kolomela arising from Transnet rail constraints in H1 2018. Production volumes were also impacted by the slight decrease in processing plant yields as Kumba focused on producing high quality products to maximise the value of tonnes railed to port and benefit from the strong demand for high-grade ore. Production at Sishen and Kolomela reduced by 10% to 7Mt (Q3 2017: 7.8Mt) and 6% to 3.5Mt (Q3 2017: 3.7Mt), respectively. Waste stripping at Sishen increased by 7% to 45Mt (Q3 2017: 42Mt) and remained flat at Kolomela (Q3 2017: 16Mt), as we continued our progress towards benchmark efficiency. Export sales decreased by 10% to 9.7Mt (Q3 2017: 11.4Mt) due to the scheduled refurbishment of the ship loaders at Saldanha which resulted in single loading of vessels during the quarter. Total finished stock increased to 6.6Mt from 6.2Mt at 30 June 2018. Guidance Kumba continued to work closely with Transnet to improve logistical performance and good progress has been made during the quarter. As a result, the 2018 full year guidance announced in Kumba's 2018 interim results on 24 July 2018 has been maintained as follows: Total production of 43-44Mt – Sishen 29-30Mt – Kolomela 14Mt – Waste – Sishen 170-180Mt – Kolomela 55-57Mt – Total sales of 42-44Mt
JSE:J200
by MariusGrobler301
J200 Market Commentary: Global Rally Fades As Sentiment Sours The biggest one-day rally in three years in Chinese equities on Monday failed to inspire other major global markets to shoot the lights out. This comes as a traders and investors in Europe and the United States face homegrown hurdles that could potentially put the brakes on short term gains. In the US, mid-term elections are sure to bring a fresh bout of volatility while in Europe, concerns over Italy is putting pressure on the region's currency, the Euro, which slipped back below the 1.15 level by the close of trade on Monday. In Europe, stocks ended in the red with the DAX, FTSE100 and CAC40 closing lower by 0.26%, 0.10% and 0.62% respectively while the broader EuroStoxx 50 shed 0.65%. Leading indices to the downside were shares such as Amsterdam-listed Philips (-8.36%), Ireland's CRH (-3.36%) and Spanish bank BBVA (-2.11%). On the JSE, the All Share Index closed higher (+0.21%) driven by a rally in Naspers and Pepkor Holdings which gained 3.20% and 2.62% respectively. The Top 40 closed higher (+0.28%), as a rally in the last twenty minutes of trading helped the index close in positive territory. This morning in Asia, stocks have given up a substantial portion of the gains seen on Monday as the sell-off in the US grips traders in the East. Looming earnings releases, the global interest rate path, Italian budget concerns and geopolitical tensions remains front of mind for traders. In terms of the risk radar, Gold is softer as the US Dollar trades near a two-month high while gains is being seen in the Japanese Yen as the safe-haven catches a bid. On the JSE, Top 40 Futures have opened lower by 1.6%. JSE Major Sectors Resources 10 -1.19% Industrial 25 +1.25% Financial 15 -0.09% ________________________________________ AUDJPY vs Gold: A brief look at relative chart of a risk-on instrument vs a risk-off one. AUDJPY: Considered the ultimate risk-on pair, the pair tends to rally when markets run and decline when risk off commences. A look at a relative chart vs Gold sees a breakout having occurred during July 2018. We now see a double formation as the price re-tests the breakout level, reflective of the shift to risk off. ________________________________________ Company News Howden Africa Holdings Limited - Trading statement for the period ended 31 December 2018 SSubsequent to the update of results on the 19th July 2018, shareholders are advised that Howden Africa Holding Ltd (“HAHL”) is expecting earnings per share ("EPS") and headline earnings per share (“HEPS”) for the period ending 31 December 2018 to be between 222.08 and 307.36 cents and between 222.06 and 307.38 cents respectively, this is a decline of between 28% and 48% in comparison to the previously reported corresponding period. The deterioration of the results is as a consequence of entering the year with a lower order book across all of the HAHL group of companies’ (“Group”) business segments, but primarily within the power market. The ongoing financial constraints of customers, subdued economic outlook and general industry uncertainty has created a challenging trading environment for the Group with a decline in annuity revenue and pressure on traditional trading margins. This financial information has not been reviewed and reported on by the auditors of HAHL. In light of the intended corporate action and to provide shareholders with all available information to make an informed decision we have decided to release this trading statement before the expected Firm Intention Announcement. For the Shareholders to understand the operational results an Adjusted EPS (EPS net of tax adjusted interest) is expected to be between 143.53 and 211.86 cents a decline of between 38% and 58% in comparison to the corresponding period Adjusted EPS of 341.65 cents. All amounts stated for December 2017 relate to the Audited EPS and HEPS amounts in the Annual Report. Restatements relating to IFRS15 have been not been taken into account for this trading statement review. ________________________________________ Blood On The Streets - But Red Equals Opportunity This morning the S&P 500 continues to show weakness as it's breaks below the 200dma. If you managed to get into the short and "sold when the sun was shining", you are 209 points in the green by this morning and despite the risk-off sentiment in global markets, traders should be looking to position themselves for rebound opportunities. We may not be there yet but I want to be ready. Technically, support for the S&P500 Futures comes in at 2704, 2691 and 2626.
SP:SPX
by MariusGrobler301
J200 Market Commentary: Global Equities Mixed On China Data and Global equities ended in mixed territory on Friday as traders and investors digested fresh data out of China, the prospect of further rate hikes in the United States while assessing the potential for geopolitical tensions between the US and Saudi Arabia. Volatility was subdued during the North American trading session as the Dow Jones Industrial Average closed higher by 0.26%, driven by a jump in Proctor and Gamble (+8.80%) which reported a stronger-than-expected increase in sales, buoyed by selected beauty products. Also leading the pack was American Express, which added 3.78% as the company exceeded analyst expectations for the third quarter. The S&P500 on the other hand finished slightly lower (-0.04%) while the NASDAQ Composite failed to shine on the day, losing 0.48%. In Europe, stocks ended in mixed territory. For the day, the DAX closed lower by 0.31%, the FTSE100 higher by 0.32% while the CAC40 closed in the red by 0.63%. Although markets had traded lower in the morning session, comments from the EU's Moscovici lifted sentiment as he indicated that he wanted to reduce tensions with the Italian government over their budget plans. On the JSE, the All Share Index closed slightly lower (-0.08%) as the market saw a somewhat even balance between buyers and sellers. The Top 40 closed lower by a similar level (-0.09%), as shares such as Kumba Iron Ore (-2.13%) and Bid Corp (-1.88%) gave index sellers a slight edge. This morning in Asia, stocks kick off the new trading week on a strong note as the Shanghai Composite is higher by over 4% on the back of stimulus hopes, the Hang Seng by 2% while the Nikkei is up nearly a half of a percent. US and European Futures also trade in positive territory. In terms of currencies, the Rand is back above the 14.30 level versus the US Dollar, while Gold trades near it's highest level in seven weeks. JSE Major Sectors Resources 10 -0.29% Industrial 25 -0.13% Financial 15 -0.17% For the week ahead the economic calendar is filled with various local and international releases. On Wednesday at 9am, we have South African Consumer Confidence while the ECB Interest Rate Decision looms at 1:45pm on Thursday. In addition, the SA Medium Term Budget Policy Statement is due on Wednesday. You may view the economic calendar by clicking on this link: www.unum.co.za ________________________________________ Company News Oceana Group Limited - Updated Trading Statement Shareholders are referred to the trading statement released on the Stock Exchange News Service (“SENS”) of the JSE Limited (“JSE”) on 12 September 2018 and are advised that basic earnings per share (“EPS”) for the year ended 30 September 2018 compared to the year ended 30 September 2017 (“comparative period”) are now expected to increase between 78% and 88%, to between 714.3 cents per share and 754.4 cents per share (30 September 2017: 401.3 cents per share). Basic headline earnings per share (“HEPS”) for the year ended 30 September 2018 are now expected to increase between 80% and 90%, to between 705.4 cents per share and 744.6 cents per share (30 September 2017: 391.9 cents per share) compared to the comparative period. The financial information on which this trading statement is based has not been reviewed and/or reported on by the Company`s auditors. The Company expects its results for the year ended 30 September 2018 to be released on the SENS on or about Thursday, 15 November 2018. ________________________________________ USDZAR - Technical Analysis On Wednesday last week we saw the price has rebound off the neckline of a head and shoulder formation, maintaining the upward trend line that has been in place since 27 March 2018. Both the 50 and 100-day moving averages continue to show an upward bias while the medium term 20-day moving average is in neutral territory. The head and shoulder is negated above the highest point of the right shoulder, currently R15.06 while a break and close below the upward trend line would signal the potential for a medium term change in trend.
JSE:J200
by MariusGrobler301