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Unum Market Commentary: Equities Lower As Fed Hikes; Dollar Gain On Wednesday all eyes were on the US Federal Reserve as market participants awaited the commentary following the near-certain 25 basis point hike which saw the lending rate increase from 2.00% to 2.25%. General commentary from the committee highlighted the most known factors including: (1) the health of the US economy (2) low unemployment (3) rising wages and (4) low and stable inflation. Also stated by Chairman Powell was that a gradual return to policy normalization will help to sustain the strong economy for the long-run benefit of all Americans. The initial reaction saw the US Dollar weaken, which saw a print of 1.1797 versus the Euro which was followed by strength that saw a print below 1.1750 post the US market close. Versus the South African Rand, the greenback tested a low of 14.08, settling to 14.15 by 6:30am this morning. In the equities space, US stocks finished lower, with the Dow Jones, S&P500 and Nasdaq 100 losing 0.40%, 0.33% and 0.21% respectively while the Russell 2000, the index which possibly better reflects the domestic US economy, took the biggest hit, losing 1.02% for the session. This morning Asian stocks are tracking Wall Street's losses with the Nikkei 225 down by 0.37%, the Hang Seng lower by 0.37% while the Shanghai Composite is down by 0.39%. GDP Projected Changes as per the FOMC JSE Major Sectors Resources 10 -1.89% Industrial 25 -0.17% Financial 15 -0.01% Below is a great chart from Statista which highlighted where tourists have been spending the most amount of money. At the top of the list was the US which received 75m inbound arrivals and where inbound expenditure was around $210bn. The Walt Disney Company - A Beneficiary of Tourism - View by Lester Davids One share that may be a beneficiary of increased tourist travel to and spending in the United States is the Walt Disney Company with their world-class theme-park entertainment which has a long and profitable operating history. The share has been a laggard over the last few years as it's sports network, ESPN, has lost subscribers. We will however in future see the company launch it's own streaming service which could benefit the share. The earnings multiple (PE) is undemanding and technically (as per the weekly chart) we are seeing a breakout. Will this be a change in long term trend? Disney Weekly Chart ________________________________________ In currencies, the South African Rand trades as follows: USDZAR +0.15% to 14.15 GBPZAR +0.01% to 18.61 EURZAR +0.23% to 16.63 Gold trades at $1202 Platinum at $830 Brent Crude Oil at $81.56 International Markets This morning, Asian equities are as follows: Nikkei 225 (-0.37%) Hang Seng (-0.37%) Shanghai Composite (-0.39%) Latam Markets closed as follows: Merval 25 (-0.32%) Bovespa (+0.03%) INMEX (-0.11%) ________________________________________ Company News Capitec Bank Holdings Limited - Unaudited Financial Results For The 6 Months Ended 31 August 2018 Salient Features Unaudited financial results for the 6 months ended 31 August 2018 +20% to 2 128 cents Headline earnings per share +20% to R2.461 billion Headline earnings +20% to 630 cents Interim dividend per share 27% Return on equity 10.5m Active clients 25% Transaction volume growth ________________________________________ Aus miners: BHP Billiton (+0.20%) Rio Tinto (-0.67%) S32 (+0.00%) FANGs Facebook (+1.24%) Amazon (+0.02%) Netflix (+2.29%) Google (+0.01%) FTSE Miners: Anglo American plc (-1.57%) BHP Billiton plc (-2.00%) Glencore plc (-1.02%) Alibaba Holdings (+0.70%) Tencent Holdings (+2.12%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk Feel free to contact the Unum trading desk for any trading related queries: 011 384 2929
JSE:J200
by MariusGrobler301
Unum Market Commentary: JSE Recovers On Bargain Hunting + Potent Despite being down on the week, South African equity markets managed to stage a short term recovery to bounce back from it's mid-week week lows as bargain hunters sought the opportunity to accumulate. Another factor that drove the recovery was a rebound in Chinese markets following a prolonged sell-off. For the session, the All-Share Index added 0.74% while the Top 40 was higher by 0.90%. Leading the way higher was banking group Investec that announced a demerger of it's Asset Management business. This saw the stock higher by 9.3% on the day as investors welcomed the development. Also in the winning lane was South 32 and Sappi that added 4.36% and 3.84% respectively. On the downside, the selling pressure continued for Aspen Pharmacare (-17%) while UK property group Hammerson lost 1.45%. In Europe, markets were in the green as the DAX, FTSE 100 and CAC 40 added 0.57%, 0.31% and 0.46% respectively. This morning, Asian equities start the week off on the back foot, with the Hang and Seng and Shanghai Composite down over 1% however the Nikkei has bucked the trend with a 1.1% gain. JSE Major Sectors Resources 10 +1.84% Industrial 25 +0.36% Financial 15 +0.96% ________________________________________ For the week ahead, there is plenty of data on the local economic calendar with SA Consumer Confidence for the third quarter being the first local release of the week tomorrow at 9am. For the rest of the week's local and international data, you may view the Unum Capital Economic Calendar here: www.unum.co.za ________________________________________ In currencies, the South African Rand trades as follows: USDZAR +0.28% to 14.94 GBPZAR +0.20% to 19.54 EURZAR +0.18% to 17.38 Gold trades at $1199 Platinum at $793 Brent Crude Oil at $77.97 International Markets This morning, Asian equities are as follows: Nikkei 225 (+1.19%) Hang Seng (-1.69%) Shanghai Composite (-1.03%) Latam Markets closed as follows: Merval 25 (-0.46%) Bovespa (+1.76%) INMEX (+0.56%) ________________________________________ Company News Investec Limited - Investec proposed demerger and listing of Investec Asset Management business Overview Following the Group’s announcement on management succession made in February 2018, the Joint Chief Executive Officer (“CEO”) Designates, Fani Titi and Hendrik du Toit, have been working closely with the Investec Board (“Board”) and current members of the Group executive (Stephen Koseff, Bernard Kantor and Glynn Burger) in order to ensure a smooth transition of leadership. In conjunction with this process, the Board together with the executive directors, have conducted a strategic review of the Group to ensure that it is positioned to enhance the long-term interests of shareholders, clients and employees. Through the strategic review the Board has reached the following conclusions: - The Group comprises a number of successful businesses operating across two core geographies, with different capital requirements and growth trajectories; and - There are compelling current and potential linkages between the Specialist Banking and Wealth & Investment businesses, however, there are limited synergies between these two businesses and IAM. The Board has further concluded that it is now appropriate to demerge and publicly list IAM (“the Transaction’”). The Investec Specialist Banking and Investec Wealth & Investment businesses will remain part of the Group’s current Dual Listed Companies structure (“the remaining Group”). The Board believes that this Transaction simplifies the Group and focuses IAM and the remaining Group on their respective growth paths, which will enhance the long- term prospects and potential of both businesses for the benefit of their shareholders, clients and employees (extract from Stock Exchange News Services Announcement) ________________________________________ Potential Trade Ideas MMI Weekly Chart View: Following a break of the downward trend line and short term price appreciation from around R16.22 to R17.66, the price has subsequently retreated to re-test the breakout level with a strong bounce off the trend line support going back to December 2015. This test also potentially creates a double bottom and an opportunity to take a buy/long position. Coronation Fund Managers Weekly Chart View: The price action for CML signals a medium term bottom, with the strong price action at it's year-to-date lows. Over the last 6 weeks, 5874c has been tested and a break above this level could see the share price make a bullish medium term reversal. The Relative Strength Index is signaling bullish divergence - an early technical reversal signal. This creates an opportunity to potentially take a buy/long position. Aus miners: BHP Billiton (-0.66%) Rio Tinto (-0.29%) S32 (+1.73%) FANGs Facebook (+0.59%) Amazon (-0.99%) Netflix (+0.98%) Google (-0.35%) FTSE Miners: Anglo American plc (+2.28%) BHP Billiton plc (+0.68%) Glencore plc (+0.68%) Alibaba Holdings (-0.48%) Tencent Holdings (-3.09%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk Please contact the Unum Trading desk for any trading related queries : 011 384 2929
JSE:J200
by MariusGrobler301
Unum Market Commentary: JSE and USA Closes Weaker While Asia Buc South African equity markets continued to trade with a downside bias, this time being held back by financial sector as stocks such as Firstrand, Standard Bank and Absa fell sharply. For the session, the All Share declined by 0.40% while the Top 40 index shed 0.45%. On the upside, winners included British American Tobacco benefited as the US Food and Drug Administration announced that that they have given JUUL and four other makers of flavored e-cigarette 60 days to submit plans to curb the use of their products by youths or risk having them pulled from the market. This came as a positive for the BTI share price which closed the session 5.26% higher. In Europe, markets closed in the green with the DAX, FTSE100 and CAC40 adding 0.52%, 0.55% and 0.92% respectively. Overnight, US markets closed weaker, while this morning Asian equities are bouncing back strongly on the back of a slightly weaker US Dollar. With Tencent having been oversold and showing signs of recovery in the US last night, the stock is up nearly 3% in Hong Kong today, which increases the likelihood of a firmer open on the JSE today. The ALSI, having traded at the bottom of the range, could find support and rebound at this range low. JSE Major Sectors Resources 10 +0.77% Industrial 25 -0.60% Financial 15 -1.36% ________________________________________ It's a data-heavy Thursday on the international economic calendar, with Australia having reported strong job growth, while later we also have releases out of the UK, Eurozone and USA. You may view the Unum Capital Economic Calendar by clicking on this link: www.unum.co.za ________________________________________ In currencies, the South African Rand trades as follows: USDZAR -0.03% to 14.95 GBPZAR -0.08% to 19.50 EURZAR -0.01% to 17.38 Gold trades at $1210 Platinum at $803 Brent Crude Oil at $79.30 International Markets This morning, Asian equities are as follows: Nikkei 225 (+0.90%) Hang Seng (+1.17%) Shanghai Composite (-0.03%) Latam Markets closed as follows: Merval 25 (+1.99%) Bovespa (+0.63%) INMEX (+0.88%) ________________________________________ Company News QUANTUM FOODS HOLDINGS LIMITED - Trading Statement In terms of the Listings Requirements of the JSE Limited, a listed company is required to publish a trading statement once it is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on next will differ by at least 20% from the financial results for the previous corresponding period. Shareholders are hereby advised that for the twelve-month period ending 30 September 2018, a reasonable degree of certainty exists that: • headline earnings per share (HEPS) of the Company will be at least 219% or 107.5 cents per share higher than reported in the comparable period; and • earnings per share (EPS) of the Company will be at least 181% or 100.6 cents per share higher than reported in the comparable period. This implies that for the twelve months ending 30 September 2018: • HEPS is expected to be at least 156.5 cents per share, compared to HEPS of 49.0 cents per share reported in the comparable period ending 30 September 2017; and • EPS is expected to be at least 156.3 cents per share, compared to EPS of 55.7 cents per share reported in the comparable period ending 30 September 2017. HEPS for the first six months of 2018 was 82.5 cents per share and EPS for the first six months of 2018 was 82.4 cents per share. Earnings expected for the second six months of the 2018 financial year compared to the first six months of the 2018 financial year was impacted by: • Continued high levels of profitability in the egg business, although margins declined with an increase in feed costs and a decline in egg prices; • Proceeds of R22 million, received from insurers compensating partly for the Avian Influenza losses that occurred in 2017 and in the first half of 2018; • Slightly weaker margins in the feeds and broiler farming businesses; and • Improved contribution from the other African operations benefiting from the favourable trading conditions. A further trading statement will be issued as soon as there is a reasonable degree of certainty as to the likely range within which the Company’s HEPS and EPS is expected to increase. Shareholders are advised that no further incidents of Avian Influenza have been experienced. Shareholders are reminded that an outbreak of Avian Influenza before the end of the reporting period could have a significant impact on the expected HEPS and EPS reflected in this trading statement. The results for the twelve months ending 30 September 2018 is expected to be published on SENS on or about 29 November 2018. The financial information on which this trading statement is based, has not been reviewed or reported on by the Company’s external auditors. ________________________________________ Aus miners: BHP Billiton (+1.03%) Rio Tinto (+1.96%) S32 (+1.51%) FANGs Facebook (-2.37%) Amazon (+0.14%) Netflix (+3.94%) Google (-1.55%) FTSE Miners: Anglo American plc (+1.29%) BHP Billiton plc (+1.44%) Glencore plc (+2.86%) Alibaba Holdings (+2.54%) Tencent Holdings (+2.72%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk For anty trading related queries, please contact the Unum Trading desk : 011 384 2929
JSE:J200
by MariusGrobler301
Unum Market Commentary: Global Equities (Ex-USA) Ease As Trade T On Tuesday, many traders and investors on the JSE most likely knocked off and called it a Tough Tuesday! If one looks at the scoreboard, it certainly appeared to be, with the All Share Index closing lower by 0.95% while the Top 40 Index was 1% in the red however well off the lows of the day. Leading the decline on the downside was Pepkor with a 3.26% decline (and which is approaching trend line support for a buy), MTN Group (-2.82%) and British American Tobacco (-2.80%). On the upside, shares that gained included Aspen Pharmacare (2.20%), RMI (+2.19%) and Nedbank (1.96%). Over in Europe, the DAX and FTSE100 closed slightly lower by 0.13% and 0.08% respectively while the CAC40 added 0.27%. On the day, out-performers in the Eurozone included Schneider Electric (+2.53%), Total (2.12%) and Airbus (+1.87%) while Bayer declined by 2.90%. In the United States, markets remained strong with the three major indices gaining meaningfully. This morning in Asia, indices trade at/near year-to-date lows as China seeking permission from the World Trade Organization to impose sanctions against the U.S. JSE Major Sectors Resources 10 -1.62% Industrial 25 -1.14% Financial 15 -0.03% ________________________________________ Today on the local front, we have Sacci Business Confidence at 11:30am followed by Retail Sales at 1pm. For the rest of the week's local and international data, you may view the Unum Capital Economic Calendar by clicking on this link: www.unum.co.za ________________________________________ In currencies, the South African Rand trades as follows: USDZAR +0.29% to 15.10 GBPZAR +0.10% to 19.64 EURZAR +0.12% to 17.49 Gold trades at $1198 Platinum at $788 Brent Crude Oil at $79.31 International Markets This morning, Asian equities are as follows: Nikkei 225 (-0.40%) Hang Seng (-0.42%) Shanghai Composite (-0.33%) Latam Markets closed as follows: Merval 25 (-0.99%) Bovespa (+2.33%) INMEX (+0.15%) ________________________________________ Company News ADvTECH ADDS MONASH SOUTH AFRICA TO GROWING HIGHER EDUCATION PORTFOLIO In terms of section 9.15 of the Listings Requirements, shareholders are advised that ADvTECH, through its subsidiary, The Independent Institute of Education Proprietary Limited, has agreed to the key terms of a proposed transaction with Monash South Africa Limited (MSA) and LEI AMEA Investments BV, which will see ADvTECH acquiring control of the MSA business (“the Business”), as well as the related property company, Laureate SA Proprietary Limited (“the Property Company”). Finalisation of the transaction is subject to the fulfilment of conditions relating to the proposed acquisition. Africa’s largest private education group ADvTECH, continues to consolidate its position in the tertiary education sector with the acquisition of MSA, a leading South African private tertiary education institution with students from more than 50 countries. The acquisition will bring ADvTECH’s tertiary student complement to more than 40, 000 full time and 30, 000 distance students, along with a comprehensive suite of premium programs, an extensive executive education and training portfolio, and new highly sought-after programmes such as engineering and public health. Rationale For The Transaction: MSA, a joint venture between the prestigious Monash University and Laureate Education, Inc., the world’s largest private higher education network, offers a world-class education environment, with a strong track record for outstanding pass rates, qualification completion times and student employability, which perfectly complements ADvTECH’s existing offering. MSA’s reputation for academic excellence aligns with ADvTECH’s values and will support its growth strategy. The Independent Institute of Education (The IIE), ADvTECH’s higher education division, together with its existing brands Varsity College, Rosebank College and Vega and now MSA, positions us well to further develop our reputation as a leading private Higher Education provider. The MSA campus, located on Johannesburg’s West Rand, is one of the largest private higher education precincts in the country. With a capacity for 6 500 students, it boasts extensive sports facilities, laboratories and 4 student residences, creating a university-like environment for students drawn from across the continent. Prof. Alwyn Louw, CEO and Academic President of MSA, says MSA is excited about becoming part of ADvTECH, as well as the opportunities that a new steward with local insights, views and experiences will bring to the development of high-quality education for South Africa. Commenting on the transaction, ADvTECH Group CEO Roy Douglas said: “We are delighted with the addition of MSA to our existing high-quality academic offering and look forward to integrating it into the group following the finalisation of regulatory and competition commission approval processes. MSA’s track record of academic excellence, along with its growth prospects, aligns perfectly with the strategic imperatives of ADvTECH.” “Organic growth is a key measure of our business, and together with acquisitions that add value to our existing portfolio, form an important part of our strategy,” Douglas says. This transaction follows a number of other recent acquisitions by ADvTECH in the Tertiary Education sector, including Capsicum Culinary Studio, The Private Hotel School and Oxbridge Academy. EFFECTIVE DATE AND CONDITIONS PRECEDENT: The transaction will become effective once all the conditions precedent to the offer have been met. Conditions Precedent include the approval of the Competition Commission, approval of the Department of Higher Education and Training (DHET) and the Council on Higher Education (CHE), and any exchange control approvals which may be required in terms of the Exchange Control Regulations. All things being equal, it is expected that the Effective Date will be on or about 1 January 2019. Shareholders will be advised accordingly. TRANSACTION CONSIDERATION & OTHER TERMS: The transaction consideration will entail an amount of R343 million, plus cash on hand and working capital adjustments at Effective Date. In order to not fall foul of Section 9.8(d) of the Listings Requirements regarding being deemed a Category 1 transaction, a maximum consideration of R500 million has been agreed, however, based on current estimates of likely working capital adjustments, the final consideration is expected to be well below the maximum. NET ASSETS & ATTRIBUTABLE PROFITS: As at the audited last year end being 31 December 2017, the combined Net Asset Value (“NAV”) of the Business and the Property Company was R330 million. The consolidated pro forma results of the business being acquired reflects a profit after taxation for the year ended December 2017 of R9,6 million. Significant synergies have already been identified and are expected to benefit the enlarged group. This forward looking statement has not been reviewed nor reported on by the Company’s external auditors. MOI: Laureate South Africa, the related property company will become a subsidiary of The Independent Institute of Education, a major subsidiary of ADvTECH. The MOI will be amended so as to conform to Schedule 10.21 of the Listings Requirements, as required. CATEGORISATION OF THE TRANSACTION: For purposes of categorisation, the transaction is deemed a category 2 transaction, given the maximum cash consideration payable, or potentially payable in terms of the agreed terms. ________________________________________ Aus miners: BHP Billiton (-0.61%) Rio Tinto (-1.01%) S32 (+0.28%) FANGs Facebook (+1.07%) Amazon (+2.48%) Netflix (+2.16%) Google (+1.27%) FTSE Miners: Anglo American plc (+0.16%) BHP Billiton plc (-1.24%) Glencore plc (-1.32%) Alibaba Holdings (+0.70%) Tencent Holdings (+0.32%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk Please feel free to contact the Unum Trading desk for any trade related queries : 011 384 29 29
by MariusGrobler301
Unum Market Commentary: JSE Declines As Trade Fears Linger; Asia South African equity markets started the week on a softer note as fears around trade between the United States and China continued to weigh on global sentiment. For the session, the All Share Index finished lower by 0.62% while the Top 40 declined by 0.57%, lead lower by Tiger Brands (-2.29%), Shoprite (-2.24%) and Bidvest (2.09%). On the upside, winners included Hammerson (2.33%), South 32 (2.19%) and Nepi Rockcastle (+1.23%). Over in Europe, the week got off to a positive start with the DAX, FTSE100 and CAC40 adding 0.22%, 0.02% and 0.33% respectively while indices in the US fared better than their Asian counterparts. This morning in Asia, equities are in the green, with the Nikkei leading the pack. JSE Major Sectors Resources 10 +0.11% Industrial 25 -0.72% Financial 15 -0.98% ________________________________________ Coming up today is SA Manufacturing Production while on the international front major highlights include UK Unemployment. For the rest of the week's local data, you may view the Unum Capital Economic Calendar here: www.unum.co.za ________________________________________ In currencies, the South African Rand trades as follows: USDZAR -0.07% to 15.18 GBPZAR +0.06% to 19.80 EURZAR +0.00% to 17.61 Gold trades at $1198 Platinum at $789 Brent Crude Oil at $77.50 International Markets This morning, Asian equities are as follows: Nikkei 225 (+1.13%) Hang Seng (-0.04%) Shanghai Composite (+0.30%) Latam Markets closed as follows: Merval 25 (-1.19%) Bovespa (+0.03%) INMEX (-0.41%) ________________________________________ Company News AVI Limited - Results for the year ended 30 June 2018 Key Features - Profit growth in a challenging demand environment - Carefully balanced value versus volume across key categories - Revenue up 1,9% to R13,44 billion - Gross profit margin recovery in line with easing of Rand driven cost pressures - Operating profit up 7,0% to R2,55 billion - Cash generated by operations up 16,1% to R2,69 billion - Capital expenditure to grow and sustain our businesses of R419,9 million - Return on capital employed increased to 28,7% - Headline earnings per share up 7,0% to 543,1 cents - Final dividend of 260 cents per share, total normal dividend up 7,4% to 435 cents per share - Special dividend of 250 cents per share ________________________________________ Aus miners: BHP Billiton (-1.15%) Rio Tinto (+1.40%) S32 (-0.86%) FANGs Facebook (+0.70%) Amazon (-0.67%) Netflix (-0.08%) Google (-0.21%) FTSE Miners: Anglo American plc (-0.73%) BHP Billiton plc (-0.29%) Glencore plc (-1.76%) Alibaba Holdings (-3.70%) Tencent Holdings (-0.96%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk Please feel free to contact the Unum Trading desk for any Trading related queries : 011 384 29 29
by MariusGrobler301
Unum Market Commentary: Global Stocks Mixed On Friday, South African equity markets were stable, holding near the lows of the week and continuing to trade within a tight, two-day range. For the session, the All Share closed 0.05% higher at 57130, while the Top 40 index was in the green by 0.12%. Supporting the positive close was Naspers (+2.61%), Discovery Holdings (+2.27), Firstrand (+2.23%) and Tiger Brands (1.94%) while shares that brought balance were the miners as Anglo American, BHP Billiton and Glencore closed lower by 4.18%, 3.38% and 3.36% respectively. Over in Europe, stocks were mixed, with the DAX and CAC40 gaining by 0.04% and 0.16% respectively while the FTSE 100 was lower by 0.56%. In the United States, stocks finished lower with the Dow Jones Industrial Average leading the way down, losing 0.31%. This morning Asian stocks are being weighed down by fresh concerns of an additional $267bn of tariffs being imposed on China by the United States. JSE Major Sectors Resources 10 -2.64% Industrial 25 +0.92% Financial 15 +0.44% ________________________________________ For the week ahead, there is plenty of data on the local economic calendar with Manufacturing Production kicking off tomorrow at 1pm. For the rest of the week's local and international data, you may view the Unum Capital Economic Calendar here: www.unum.co.za ________________________________________ In currencies, the South African Rand trades as follows: USDZAR +0.28% to 15.27 GBPZAR +0.20% to 19.72 EURZAR +0.18% to 17.63 Gold trades at $1298 Platinum at $779 Brent Crude Oil at $77.27 International Markets This morning, Asian equities are as follows: Nikkei 225 (+0.15%) Hang Seng (-0.85%) Shanghai Composite (-0.63%) Latam Markets closed as follows: Merval 25 (-0.46%) Bovespa (+1.76%) INMEX (+0.56%) ________________________________________ Company News Tiger Brands - Changes to the Board of Directors of Tiger Brands In compliance with section 3.59 of the JSE Limited Listings Requirements, shareholders are advised that Mr Rob Nisbet has stepped down as independent non-executive director of the Company with effect from today, 7 September 2018. He accordingly also steps down as a member and chairman of the Audit Committee, as well as a member of the Investment and Risk & Sustainability Committees of the Company. Rob has served on the Board of Tiger Brands since 1 August 2010. The Board would like to thank Rob for his significant contribution to the Company and wishes him well in his future endeavours African Rainbow Minerals - Provisional results for the year ended 30 June 2018 Salient features - Headline earnings increased by 51% to R4 814 million (F2017: R3 196 million), which includes a net fair value gain of R977 million. The net fair value gain is due to a change in the net present value of loan repayment cash flows as a result of restructuring the ARM coal debt. Excluding the net fair value gain, headline earnings are up 20% compared to F2017. - Headline earnings per share were 2 526 cents compared to 1 684 cents in F2017. - Final dividend of 750 cents declared. A maiden interim dividend of 250 cents per share was paid for the first half of the financial year (1H F2018). The cumulative dividend for F2018 is 1 000 cents per share (F2017: 650 cents per share). - Basic earnings were R4 562 million (F2017: R1 372 million) and include the net value gain of R977 million as a result of the restructuring of the ARM Coal debt. F2017 included attributable impairments of the Nkomati Mine and Modikwa Mine assets of R711 million and R734 million after tax and non-controlling interest, respectively. - US Dollar prices realised for most commodities were higher except for iron ore, platinum and chrome concentrate prices. - ARM and Glencore successfully concluded the restructuring of the ARM Coal debt which improves ARM and ARM Coal's obligations in terms of this debt. - The disposal of ARM and Vale's 80% interest in Lubambe Mine was completed on 22 December 2017. - Dividends received from the Assmang joint venture were R3 000 million (F2017: R2 488 million). - The consolidated financial position improved by R2 266 million to net cash of R995 million (net debt of R1 271 million as at 30 June 2017). ________________________________________ Aus miners: BHP Billiton (-0.16%) Rio Tinto (-0.80%) S32 (+2.01%) FANGs Facebook (+0.31%) Amazon (-0.32%) Netflix (+0.64%) Google (-0.54%) FTSE Miners: Anglo American plc (-1.77%) BHP Billiton plc (-1.67%) Glencore plc (+2.68%) Alibaba Holdings (+1.56%) Tencent Holdings (-0.13%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk Please feel free to contact the Unum Trading desk for any trading related queries : 011 384 29 29
JSE:J200
by MariusGrobler301
Unum Market Commentary: Recession Realities Hit JSE; Rand SlidesOn Tuesday, the reality of South Africa's economic challenges manifested itself in the data set released by Statistics South Africa which showed that the economy contracted by 0.7% for the second quarter of 2018, following on from a 2.6% contraction in the first. Immediately following the release, weakness was seen in the Rand which saw a sharp sell-off from 15.02 to 15.21 versus the US Dollar. This weakness continued throughout the day with the local unit reaching a low of R15.38 versus the greenback by 8pm Tuesday evening. As a result of the poor GDP print and subsequent currency slump, shares with widespread South African exposure saw sharp declines. These shares included Bidvest (-6.60%), Firstrand (-5.00%) and Vodacom (4.54%) while MTN (-17.05%) saw sharp losses on the back of fresh claims out of Nigeria. Benefiting from the weaker currency was Kumba Iron Ore (4.69%), Mediclinic International (2.45%) and British American Tobacco (+2.37%). On European markets, declines were seen across the board with the Euro Stoxx 50 index shedding 1.06% on the day, dragged down by luxury goods retailer LVMH (-3.51%) and semiconductor producer ASML (-3.20%). This morning, the Dollar starts on the back foot while Asian equities are down over 1% on average. JSE Major Sectors Resources 10 +0.55% Industrial 25 -1.75% Financial 15 -3.10% ________________________________________ Join the Unum Trading Desk on Friday 7 Sep 2018 starting at 14:15 as we look to trade the EURUSD Forex pair on the NFP data. t.me ________________________________________ In currencies, the South African Rand trades as follows: USDZAR -0.25% to 15.30 GBPZAR -0.23% to 19.67 EURZAR -0.17% to 17.74 Gold trades at $1198 Platinum at $778 Brent Crude Oil at $77.83 International Markets This morning, Asian equities are as follows: Nikkei 225 (-0.30%) Hang Seng (-1.67%) Shanghai Composite (-0.92%) Latam Markets closed as follows: Merval 25 (-4.10%) Bovespa (-1.94%) INMEX (-1.18%) ________________________________________ Company News Steinhoff International Holdings N.V - Sale Of Interests In The Poco Furniture Group On 26 April 2018 the Group announced that it had agreed in principle a settlement of the German litigation proceedings between the Group and entities controlled by Dr Andreas Seifert (the “Seifert Entities”). It was noted in the 26 April 2018 announcement that the Seifert Entities had offered to acquire the Group’s remaining 50% interest in the POCO furniture group (“POCO”). The Group’s subsidiary LiVest GmbH (“LiVest”) holds the Group’s shares in POCO and has today entered into a sale agreement with the Seifert Entities by which the Seifert Entities will acquire LiVest’s shares in POCO and certain related properties for a total consideration of €270.685 million (the “POCO Sale”). In addition, the POCO business will retain debt of approximately €140 million, with no recourse to the Group. The closing of the POCO Sale is subject to typical conditions precedent including German and Austrian competition and merger control provisions. Closing of the POCO Sale shall bring the German litigation proceedings with the Seifert Entities to an end. As noted in the Company’s Q3 2018 trading update, following the declaration of a dispute by the Pohlmann family regarding the 2015 sale of their interest in LiVest to Steinhoff, any proceeds from the sale by LiVest of its 50% share in POCO will be held in escrow while the Pohlmann dispute is finalised. Shareholders and other investors in the Company are advised to exercise caution when dealing in the securities of the Group. ________________________________________ Aus miners: BHP Billiton (-2.42%) Rio Tinto (-2.48%) S32 (-2.31%) FANGs Facebook (-2.60%) Amazon (+1.33%) Netflix (-1.11%) Google (-1.66%) FTSE Miners: Anglo American plc (-1.48%) BHP Billiton plc (-1.92%) Glencore plc (-1.81%) Alibaba Holdings (-2.61%) Tencent Holdings (-2.48%) Share Link: bit.ly/JoinUnum ________________________________________ Please feel free to contact the Unum Trading desk for any queries : 011 384 29 29
JSE:J200
by MariusGrobler301
Unum Market Commentary: JSE Contagion Casualties; Equities Slip It was "Throwback Thursday" on the JSE as the index gave back all of the week's gains due to the extended emerging market contagion. This time we (again) cried for Argentina as the central bank raised interest rates to 60% which saw it's currency plunge to an all-time low of 41.35 to the US Dollar. This impact was seen in the local unit as the Rand closed weaker by 2.5% versus the US Dollar, 2.4% versus the British Pound and 2.2% versus the Euro. Reports also surfaced that Us President Donald Trump is looking at impose a further $200bn of tariffs on China. This saw US Indices close lower on the day, with the Dow Jones Industrial Average, S&P500 and Nasdaq in the red by 0.53%, 0.44% and 0.26% respectively. On the local market, stocks were under pressure with the biggest news story of the day being MTN coming to heads with the Nigerian Central Bank with the authority suggesting that the telecommunications giant repay $8.1bn that had been "illegally" moved abroad. This saw even further contagion amongst JSE listed shares, with Shoprite and Coronation Fund Managers declining, potentially on the back of the news. On the day, the JSE All Share Index closed lower by 2.27%, while the Top 40 Index closed in the red by 2.56%. This morning, Asian markets are mostly lower with Tencent down 4.5% as the Chinese Government plans to limit the number of new online games in its push against gaming addiction. JSE Major Sectors Resources 10 +0.20% Industrial 25 -4.07% Financial 15 -1.43% ________________________________________ Join the Unum Trading Desk on Friday 7 Sep 2018 starting at 14:15 as we look to trade the EURUSD Forex pair on the NFP data. t.me ________________________________________ In currencies, the South African Rand trades as follows: USDZAR +0.01% to 14.72 GBPZAR +0.02% to 19.16 EURZAR -0.00% to 16.18 Gold trades at $1210 Platinum at $794 Brent Crude Oil at $78.03 International Markets This morning, Asian equities are as follows: Nikkei 225 (-0.09%) Hang Seng (-0.92%) Shanghai Composite (-0.08%) Latam Markets closed as follows: Merval 25 (+5.34%) Bovespa (-2.53%) INMEX (-1.08%) ________________________________________ Company News MTN GROUP LIMITED - Central Bank of Nigeria (CBN) correspondence re Certificates of Capital Importation(CCIs) in Nigeria and cautionary Central Bank of Nigeria (CBN) correspondence regarding Certificates of Capital Importation (CCI’s) in Nigeria and cautionary announcement MTN Nigeria Communications Limited (MTN Nigeria) received a letter on 29 August 2018 from CBN alleging that CCI’s issued in respect of the conversion of shareholders loans in MTN Nigeria to preference shares in 2007 had been improperly issued. As a consequence they claim that historic dividends repatriated by MTN Nigeria between 2007 and 2015 amounting to $8,1 billion need to be refunded to the CBN. MTN Nigeria strongly refutes these allegations and claims. No dividends have been declared or paid by MTN Nigeria other than pursuant to CCI’s issued by our bankers and with the approval of the CBN as required by law. The issues surrounding the CCI’shave already been the subject of a thorough enquiry by the Senate of Nigeria. In September 2016 the Senate mandated the Committee on Banking, Insurance and other Financial Institutions to carry out a holistic investigation on compliance with the Foreign exchange (monitoring and miscellaneous) Act by MTN Nigeria & Others. In its report issued in November 2017, the findings evidenced that MTN Nigeria did not collude to contravene the foreign exchange laws and there were no negative recommendations made against MTN Nigeria. MTN Nigeria, as a law-abiding citizen of Nigeria, is committed to good governance and to abiding by the extant laws of the Federal Republic of Nigeria. The re-emergence of these issues is regrettable as it damages investor confidence and, by extension, inhibits the growth and development of the Nigerian economy. We will engage with the relevant authorities and vigorously defend our position on this matter and provide further information when available. Shareholders are accordingly advised to exercise caution when dealing in the Company’s securities until a further announcement is made. ________________________________________ Aus miners: BHP Billiton (-1.15%) Rio Tinto (-0.67%) S32 (-1.82%) FANGs Facebook (+0.99%) Amazon (+0.21%) Netflix (+0.80%) Google (-1.81%) FTSE Miners: Anglo American plc (-1.33%) BHP Billiton plc (-1.77%) Glencore plc (-0.60%) Alibaba Holdings (-2.18%) Tencent Holdings (-4.53%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk
JSE:J200
by MariusGrobler301
Unum Market Commentary: Equities Hit Record High Global equity markets started the week on a strong note, continuing the upward momentum following comments last week by the Federal Reserve Chairman Jerome Powell that the committee sees "gradual" interest rate increases and no clear signs that inflation would accelerating above target. Adding to the "risk-on" sentiment was the revised trade agreement between the US and Mexico as well as news that the Chinese central bank would look to support the currency. On the day, the Dow Jones Industrial Average and S&P500 (all time high) closed higher by 1.01% and 0.77% respectively, while the technology-heavy Nasdaq Composite index also hit a record high, topping 8000 index points for the first time ever. On the JSE, the All Share Index saw it's best level since January of this year, boosted by a strong performance out of financial shares as the Fini15 added 2.17% on the day. JSE Major Sectors Resources 10 +2.04% Industrial 25 +1.06% Financial 15 +2.17% ________________________________________ Join the Unum Trading Desk on Friday 7 Sep 2018 starting at 14:15 as we look to trade the EURUSD Forex pair on the NFP data. t.me ________________________________________ In currencies, the South African Rand trades as follows: USDZAR +0.48% to 14.22 GBPZAR +0.33% to 18.31 EURZAR +0.42% to 16.60 Gold trades at $1207 Platinum at $816 Brent Crude Oil at $76.48 International Markets This morning, Asian equities are as follows: Nikkei 225 (+0.39%) Hang Seng (+0.26%) Shanghai Composite (0.00%) Latam Markets closed as follows: Merval 25 (+1.06%) Bovespa (+2.19%) INMEX (+1.73%) ________________________________________ Company News Homechoice International - Interim results for the six months ended 30 June 2018 and cash dividend declaration Financial Highlights - Revenue up 16.1% to R1.5 billion - Retail sales up 18.9% to R856 million - Loan disbursements up 30.0% to R853 million - Credit extended on digital channels up 54.7% to 39.1% of all credit - Cash generated from operations up 37.9% to R240 million - Headline earnings per share up 14.7% to 250 cents - - Customer base up 5.0% to 836 000 - Interim dividend up 15.9% to 95 cents ________________________________________ Aus miners: BHP Billiton (+0.97%) Rio Tinto (+0.75%) S32 (+2.37%) FANGs Facebook (+1.61%) Amazon (+1.17%) Netflix (+1.61%) Google (+1.58%) FTSE Miners: UK Market Closed on 27-Aug-2018 Alibaba Holdings (+3.68%) Tencent Holdings (+1.16%) Share Link: bit.ly/JoinUnum ________________________________________ Please feel free to contact the Unum Trading desk for any advice or trading related queries. 011 384 2929
JSE:J200
by MariusGrobler301
Unum Market Commentary: Global Equities Firm As Dollar Weakens On Friday, the South African equity market continued to tick higher, buoyed by a general risk-on sentiment as well as a weaker US Dollar and lower US Bond Yields. On the day, the All Share Index added 1.02% while the Top 40 Index was higher by 1.17% lead by Pepkor, Glencore and Naspers while South 32, Standard Bank and South 32 weighed on the index. In Europe, equity markets were higher with the EuroStoxx50 index adding 0.29%, lead by CRH and Nokia that added 1.86% and 1.37% respectively. In the US, markets ended the week on a high note with the the Dow Jones, S&P500 and Nasdaq adding 0.52%, 0.62% and 0.86% respectively. This morning equity markets in Asia are on the front foot, with the Nikkei, Hang Seng and Shanghai Composite higher by 0.85%, 2.17% and 1.43% respectively (6:25am). JSE Major Sectors Resources 10 +0.98% Industrial 25 +1.41% Financial 15 +0.52% Join the Unum Trading Desk on Friday 7 Sep 2018 starting at 14:15 as we look to trade the EURUSD Forex pair on the NFP data. t.me In currencies, the South African Rand trades as follows: USDZAR +0.04% to 14.26 GBPZAR +0.09% to 18.33 EURZAR +0.10% to 16.58 Gold trades at $1212 Platinum at $791 Brent Crude Oil at $76.09 International Markets This morning, Asian equities are as follows: Nikkei 225 (+0.85%) Hang Seng (+2.17%) Shanghai Composite (+1.43%) Latam Markets closed as follows: Merval 25 (-5.11%) Bovespa (+0.83%) INMEX (-0.22%) Company News MMI Holdings - Trading statement for the year ended 30 June 2018 Shareholders are reminded that MMI executive management has introduced a number of recent changes to the organisation in order to focus on the practical implementation of our strategy. We have reset the business to provide a strong foundation for improved performance and future growth. We are confident that these changes will create value for shareholders in due course. Shareholders are advised that the diluted core headline earnings per share, the group's main earnings measure to monitor the operational performance of the group, is expected to decrease by between 5 and 15 percent relative to the previous year. The diluted core headline earnings expectation equates to a range from 170cps to 190cps for F2018, compared to 200cps in F2017. Diluted core headline earnings has been negatively affected during the period by various factors including increased investment in client engagement activities, higher expenditure in technology, and weaker persistency in Metropolitan Retail. Also, MMI’s share of losses increased, in line with business plans, on new initiatives such as the India joint venture. Momentum Corporate profits have improved with group underwriting results showing an improvement year-on- year, whilst good expense management also contributed to their improved result. Strong mortality and morbidity profits across the group boosted core earnings. Shareholders are further advised that the group's basic earnings per share is expected to decrease by between 5 and 15 percent (to between 84cps and 94cps) relative to 98cps earned in the comparative period. Headline earnings per share is expected to show a decrease of between 15 and 25 percent (to between 89cps and 101cps) relative to 118cps for the comparative period. Basic and headline earnings have both been negatively affected by significant basis changes in Momentum Retail and Metropolitan Retail and the weak investment markets of F2017 resulting in a lower starting asset base for the current year. Basic earnings decreased by less than headline earnings mainly due to a reduction in the impairment of intangibles compared to F2017. Note that MMI excludes fair value gains, impairment of intangibles, movement in value of MMI shares held in policyholder funds, investment variances and non-recurring items from core headline earnings whereas basic earnings include all these items. MMI will be releasing final results for the year ended 30 June 2018 on 5 September 2018. The forecast financial information contained in this trading statement to shareholders is based on information available at the time of publication and has not been reviewed and reported on by the Company’s auditors. Aus miners: BHP Billiton (+1.31%) Rio Tinto (+0.98%) S32 (+0.59%) FANGs Facebook (+1.01%) Amazon (+0.13%) Netflix (+5.79%) Google (+1.28%) FTSE Miners: Anglo American plc (+2.54%) BHP Billiton plc (+2.17%) Glencore plc (+3.30%) Alibaba Holdings (+1.16%) Tencent Holdings (+1.36%) Please feel free to contact the Unum Trading Desk for any assistance or trading related queries. Unum Trading Desk : 011 384 2929
JSE:J200
by MariusGrobler301
Unum Market Commentary: JSE Higher As Local Shares AdvanceLocal equity markets continued to trade strongly on Wednesday as a weaker US Dollar helped to bring relief to the battered emerging markets, which have been under significant pressure year-to-date. On the day, the iShares Emerging Markets ETF advanced by 0.79%, continuing to bounce off the YTD lows. On the JSE the All Share Index closed higher by 1.64% while the Top 40 added 1.83%. Leading the way higher was Aspen Pharmacare and Mediclinic that added 5.95% and 4.77% respectively while Quilter and Bidcorp lost 6.83% and 2.19% respectively. In Europe, the DAX was unchanged (+0.01%), while the FTSE 100 and CAC 40 added 0.11% and 0.22% respectively. JSE Major Sectors Resources 10 +1.53% Industrial 25 +2.16% Financial 15 +1.22% ________________________________________ In currencies, the South African Rand trades as follows: USDZAR +1.61% to 14.38 GBPZAR +1.35% to 18.52 EURZAR +1.24% to 16.62 Gold trades at $1198 Platinum at $788 Brent Crude Oil at $74.60 International Markets This morning, Asian equities are as follows: Nikkei 225 (+0.36%) Hang Seng (-0.35%) Shanghai Composite (-0.38%) Latam Markets closed as follows: Merval 25 (+3.07%) Bovespa (+2.29%) INMEX (+1.18%) ________________________________________ Company News Bidvest Group - Trading Statement In accordance with Section 3.4(b) (i) of the JSE Listings Requirements, listed companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported will differ by at least 20% from those of the previous corresponding period. Shareholders are advised that: - The normalised headline earnings per share (HEPS) for the year to 30 June 2018 is expected to be between 11% and 14% higher than the prior year (2017: 1 115.4 cents), translating into normalised HEPS of between 1 238 cents and 1 272 cents. Normalised HEPS, which excludes acquisition costs and amortisation of acquired customer contracts, is a measurement management uses to assess the underlying business performance. - The HEPS for the year to 30 June 2018 is expected to be between 10% and 12% higher than the prior year (2017: 1 108.2 cents), translating into HEPS of between 1 219 cents and 1 241 cents. - Basic earnings per share (EPS) for the year to 30 June 2018 is expected to be between 19% and 22% lower, translating into EPS of between 1 116 cents and 1 159 cents, when compared to the previous twelve months (2017: 1 430.3 cents). This is primarily due to a contraction in the share prices of our associates, Adcock Ingram and Comair, compared to material share price increases in the prior year. The financial information on which this trading statement is based has not been reviewed and reported on by the Group’s auditors. The Group expects its results for the year ended 30 June 2018 to be released on SENS on or about the 3rd of September 2018. ________________________________________ Aus miners: BHP Billiton (+1.26%) Rio Tinto (+0.43%) S32 (+5.67%) FANGs Facebook (+0.59%) Amazon (+1.14%) Netflix (+1.90%) Google (+0.36%) FTSE Miners: Anglo American plc (+0.91%) BHP Billiton plc (+1.58%) Glencore plc (+0.38%) Alibaba Holdings (-0.01%) Tencent Holdings (+0.17%) For any assistance or trading related queries, please contact the Unum Trading desk on 011 384 2929
JSE:J200
by MariusGrobler301
Unum Market Commentary: Global Equities Remain Bid, Dollar fadesRumblings throughout the financial markets continued on Tuesday around US Donald Trump being concerned about the Federal Reserve raising interest rates. As you may well know, higher rates in the US means a stronger US Dollar but could also spell trouble for equity markets which for nearly a decade have relied on low interest rates to borrow cheaply and fuel growth. This dollar weakness saw the Rand gain on the day, testing a one-week low of R14.27. Also on the day the All Share Index was marginally higher by 0.07% while the Top 40 added 24 points to close the session 0.05% higher. JSE Major Sectors Resources 10 -1.19% Industrial 25 +0.28% Financial 15 +1.03% In currencies, the South African Rand trades as follows: USDZAR -0.28% to 14.34 GBPZAR -0.23% to 18.52 EURZAR -0.23% to 16.61 Gold trades at $1201 Platinum at $795 Brent Crude Oil at $72.92 International Markets This morning, Asian equities are as follows: Nikkei 225 (+0.61%) Hang Seng (+0.30%) Shanghai Composite (-0.65%) Latam Markets closed as follows: Merval 25 (-0.74%) Bovespa (-1.50%) INMEX (+1.04%) Aus miners: BHP Billiton (-1.60%) Rio Tinto (-1.62%) S32 (-0.91%) FANGs Facebook (+0.07%) Amazon (+0.36%) Netflix (+3.14%) Google (-0.37%) FTSE Miners: Anglo American plc (+0.54%) BHP Billiton plc (-2.10%) Glencore plc (+0.24%) Alibaba Holdings (+0.92%) Tencent Holdings (+2.28%)
JSE:J200
by MariusGrobler301
BTCUSD: Bitcoin Monday Morning FeelingBitcoin Monday Morning Feeling Bitcoin finally gave up the weekend rally with a little double top at 8399 before falling away overnight to a low at 8005 at 06:00 gmt/01:00est A break below 8000 was needed to trigger the next short from here. Since then it's made a little counter-rally but looks vulnerable again once it fails and the small rising dynamic underpinning the rally today gives way. Should fall back to 8000 when this gives way and once 7962 gives way should begin to pick up downside momentum. A short when 8070 breaks with stop above 8115 and add or more aggressive short once 7950 gives way with stops 70 or so higher when broken. But until we see the little rising dynamic broken below Bitcoin will attempt to push higher in nearterm and cannot be shorted yet.
COINBASE:BTCUSD
by sumastardon
4
Morning Star on GBPNZD daily! Go long! Morning star got formed 3 hours ago on GBPNZD daily when NY closed. Last time it was seen on the daily chart of this pair was more than a year ago in early March 2017. After last year´s GBPNZD morning star the bullish move was for over 1600 pips all the way into May 2017. Morning star is one of top 6 reversal signs. Earlier we had bullish engulfing which failed to penetrate 68 fib level resulting in the formation of this beautiful morning star off 68 fib level.
by ICFX