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ZA TOP 40

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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
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by MariusGrobler301
Unum Market Commentary: JSE Falls Financials See Selling Pressur On Tuesday the JSE came under pressure as it caught up with a softer global sentiment driven by traders expecting economic data, USD-China trade negotiations as well as political maneuverings out of Washington. For the day, the All Share Index was lower by 0.49% while the Top 40 declined by 0.64%. Leading the declining were financials, with Standard Bank and Nedbank which were lower by 3.99% and 3.14% respectively while Bidvest (-3.76%) also added to the losses. In the winning lane, Sasol was boosted by a rising oil price, adding 3.87% for the session while Kumba Iron Ore attracted buying interest, adding 3.88% for the session. In Europe, stock were mostly higher with the FTSE 100 adding 0.62% on the day. US Stocks were mixed, with the Dow Jones, S&P 500 lower by 0.26% and 0.13% while the Nasdaq was higher by 0.18%. This morning Asian equities are higher with the Hang Seng leading the way with a 1.6% gain. JSE Major Sectors Resources 10 -0.05% Industrial 25 +0.31% Financial 15 +0.34% Two ideas (by Lester Davids) that had mixed results recently were a short/sell on the DAX and a Buy/Long on the FTSE100. Here's how that played out: #1. DAX Futures - Stop-loss breached #2. FTSE 100 Futures While consolidating, the price slipped below the stop-loss level before moving in the anticipated direction. ________________________________________ Platinum's Pause - Technical View by Lester Davids Platinum has had a solid recovery from the lows of $756 just over one month ago. The price is now trading in line with the downward trend line going back to the year-to-date peak of $1033 as well as near the horizontal resistance that has been in place over the last 13 weeks. While the price appears to be bottoming over the medium term, the short term dircetion may see a pause as a short term recovery in the US Dollar curbs further upside. Platinum Daily Chart Are you receiving RobbyP's Stock Alerts? Sign up today ________________________________________ In currencies, the South African Rand trades as follows: USDZAR +0.10% to 14.36 GBPZAR +0.09% to 18.93 EURZAR +0.08% to 16.90 Gold trades at $1205 Platinum at $828 Brent Crude Oil at $81.24 International Markets This morning, Asian equities are as follows: Nikkei 225 (+0.24%) Hang Seng (-0.03%) Shanghai Composite (-0.12%) Latam Markets closed as follows: Merval 25 (+2.68%) Bovespa (+0.83%) INMEX (+0.37%) ________________________________________ Company News Standard Bank Group - Withdrawal of Cautionary Shareholders of Standard Bank Group (“Shareholders”) are referred to the cautionary announcement dated 30 August 2018, and the subsequent update announcement dated 6 September 2018, in terms of which Shareholders were advised that the Central Bank of Nigeria (“CBN”) had imposed a penalty on Stanbic IBTC Bank PLC (“Stanbic IBTC Bank” or “the Bank”) relating to the remittance of foreign exchange on behalf of MTN Nigeria Communications Limited (“MTN Nigeria”) and requested that the funds remitted by the Bank on behalf of MTN Nigeria be refunded to the CBN. Shareholders are hereby notified that the CBN has written to advise the Bank that it will examine new submissions and documentations made by the Bank, and where justified, it will review its earlier decision on the penalty it imposed on the Bank. The Bank had communicated that it believed that it had acted properly in an agency capacity. Furthermore, the CBN has confirmed that the Bank will not be debited for USD2.632 billion which the CBN had previously suggested that the Bank should also be prepared to refund. The Bank will continue its engagements with the CBN. As the financial impact of the penalties levied by the CBN on the Bank has been published and sufficient clarity has now been provided by the CBN regarding the Bank’s relationship to the refund sought by the CBN, caution is no longer required to be exercised by Shareholders when dealing in their Standard Bank Group securities. ________________________________________ Aus miners: BHP Billiton (+1.17%) Rio Tinto (+1.13%) S32 (+0.51%) FANGs Facebook (-0.30%) Amazon (+2.08%) Netflix (-0.05%) Google (+1.21%) FTSE Miners: Anglo American plc (+0.96%) BHP Billiton plc (+1.47%) Glencore plc (+3.48%) Alibaba Holdings (+0.67%) Tencent Holdings (+0.79%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk Please feel free to contact the Unum trading desk : 011 384 29 29
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by MariusGrobler301
Unum Market Commentary: JSE Struggles For Direction As Rand Weig On Wednesday, a weaker South African Rand weighed on local shares, holding the index back from a further advance. On the day, the All Share closed higher by 0.21% but really struggled to find a real direction as financial shares closed lower by 1.14% while other domestic names such as Shoprite, Bidvest and Vodacom declined by 4.23%, 2.14% and 2.03% respectively. On the upside, BHP Billiton closed at the highest level since August 2014, while Nepi Rockcastle, British American Tobacco and Glencore helped the index to remain in positive territory. In Europe, indices were mostly higher while the UK's FTSE100 saw a decline of 0.71%. In the United States, indices closed in positive territory as the S&P 500 held onto the 2900 level while the Nasdaq closed at another all-time high. JSE Major Sectors Resources 10 +1.59% Industrial 25 +0.17% Financial 15 -1.14% ________________________________________ 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 +0.36% to 14.41 GBPZAR +0.35% to 18.77 EURZAR -0.32% to 16.86 Gold trades at $1210 Platinum at $794 Brent Crude Oil at $77.62 International Markets This morning, Asian equities are as follows: Nikkei 225 (+0.16%) Hang Seng (-0.73%) Shanghai Composite (-0.81%) Latam Markets closed as follows: Merval 25 (+1.46%) Bovespa (+1.18%) INMEX (+0.39%) ________________________________________ Company News Murray and Roberts Holdings - Audited annual provisional results for the 12 months ended 30 June 2018 Salient features - R21,8 billion Revenue from continuing operations, increased by 2% (FY2017: R21,4 billion) - R267 million Attributable earnings increased by 456% (FY2017: R48 million) - 50 cents Gross annual dividend increased by 11% to 50 cents per ordinary share (FY2017: 45 cents) - 112 cents Diluted continuing HEPS, increased by 56% (FY2017: 72 cents) - R2 billion Cash, net of debt, increased by 11% (30 June 2017: R1,8 billion) - R30,1 billion Order book for continuing operations increased by 12%(30 June 2017: R26,9 billion) ________________________________________ Aus miners: BHP Billiton (-0.08%) Rio Tinto (-0.44%) S32 (+0.98%) FANGs Facebook (-0.20%) Amazon (+3.38%) Netflix (-0.12%) Google (-1.51%) FTSE Miners: Anglo American plc (-1.83%) BHP Billiton plc (-0.70%) Glencore plc (-0.78%) Alibaba Holdings (+0.17%) Tencent Holdings (-1.11%) Share Link: bit.ly/JoinUnum For any trading related queries or advice, please contact the Unum Trading desk: 011 384 2929 ________________________________________ The Unum Capital Trading Desk
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by MariusGrobler301
Unum Market Commentary: Global Equities Mixed As Traders Assess Global equities got off to a weaker start this week as traders assessed the impact of further tariffs as well as a slew of economic data and potentially market-moving events for the week ahead. This morning we saw the release of the Bank of Japan Monetary Policy Meeting Minutes while tomorrow the US Federal Reserve's Interest Rate Announcement is made known where traders largely expect the committee to raise the lending rate by 25bps. On Thursday, Euro-Area business confidence figures is expected to be released while US Personal Spending is due on Friday at 8:30am New York time. In Europe, equities were weaker, with the DAX, FTSE100 and CAC40 all lower by 0.64%, 0.42% and 0.33% respectively while major indices in the US were mostly lower between 0.35% and 0.70% on average while the Nasdaq managed to get back into the green with a 0.08% gain. This morning in Asia, markets are flat to down, with the Hang Seng being the biggest drag (-1.62%). JSE Major Sectors Resources 10 +0.30% Industrial 25 +0.99% Financial 15 +2.54% ________________________________________ US Dollar Futures (DXY) - Technical View by Lester Davids The price has found support 93.42, a level that has held over the past four months. The medium term setup is bearish, with a head and shoulder top developing while the near term price action signals higher levels as the right shoulder of the technical formation develops. US Dollar Index Futures (Daily Chart) ________________________________________ In currencies, the South African Rand trades as follows: USDZAR -0.03% to 14.37 GBPZAR -0.12% to 18.83 EURZAR -0.07% to 16.87 Gold trades at $1202 Platinum at $832 Brent Crude Oil at $80.69 International Markets This morning, Asian equities are as follows: Nikkei 225 (+0.07%) Hang Seng (-1.62%) Shanghai Composite (-0.83%) Latam Markets closed as follows: Merval 25 (-3.39%) Bovespa (-1.84%) INMEX (-0.14%) ________________________________________ Company News ArcelorMittal South Africa Limited - Appointment Of Chief Financial Officer And Executive Director In compliance with paragraph 3.59(a) of the Listings Requirements of the JSE Limited, shareholders are advised that after following an appropriate recruitment process. The Board of Directors (Board) has approved the appointment of Mr Avinash Desmond Maharaj (Desmond) as Chief Financial Officer (CFO) and Executive Director of the Board with effect from 1 October 2018. Mr Maharaj has a Master’s degree in Finance and is a qualified Chartered Accountant registered with the South African Institute of Chartered Accountants. He has a 22-year career with 17 years at a senior executive level in Finance and General Management level. Mr Gerhard van Zyl, who acted as Acting CFO pending the appointment of a permanent CFO, will accordingly step down as Acting CFO. The Board congratulates Mr Maharaj on his appointment and looks forward to his contribution. ________________________________________ Amazon Inc - The Most Important Stock In The World? - Technical View by Lester Davids The contribution of technology behemoth Amazon Inc to US stock market performance cannot be understated. From being the second company (behind Apple) to reach 1 trillion US Dollars in market value and being a feature across feature across many active and passive funds, the share has become nearly a proxy for US stock market resilience. Today I'm having a brief look at the short term technical position for the share and how it may influence near term performance for US Stocks. The price has performed strongly year-to-date, appreciating by 64%. Recently the share has breached it's upward trend line that has been in place since October 2017 and has also breached support on it's RSI technical indicator which is starting to turn lower and trending toward the short term bearish zone. When Amazon is overlayed versus the S&P 500 we see the a strong correlation in performance over the short term. Bottom Line: With the upward trend line having been breached and the RSI pointing toward the bearish "zone", Amazon under-performance may filter through to the broader S&P 500 index. ________________________________________ Aus miners: BHP Billiton (+0.86%) Rio Tinto (+0.97%) S32 (+1.56%) FANGs Facebook (+1.52%) Amazon (+1.01%) Netflix (+2.33%) Google (+0.63%) FTSE Miners: Anglo American plc (-1.40%) BHP Billiton plc (-0.41%) Glencore plc (-2.02%) Alibaba Holdings (+0.89%) Tencent Holdings (-1.97%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk Please feel free to contact the Unum Trading desk for any trading related queries : Tel: 011 384 2929
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by MariusGrobler301
Unum Market Commentary: JSE Stable As Rand Gains On Inflation Da Wednesday saw the release of a key piece of SA economic data which helped the Rand gain versus the major currencies. Inflation for the month of August (YoY) came in at 4.9% versus a prior reading of 5.1% and consensus forecast of 5.2%. This saw the Rand gain by approximately 27 cents versus the US Dollar, closing the session just above the R14.60 level from a Tuesday session close of R14.90. A weaker US Dollar also saw metals strong on the day which in turn helped Anglo American plc add 4.11% for the session, while Mr Price and Sanlam added 3.86% and 3.52% respectively. On the downside, Aspen continued to be under significant selling pressure, shedding nearly 8%. In Europe, markets remained buoyant with the DAX, FTSE and CAC40 adding 0.50%, 0.42% and 0.56% respectively. Overnight US stocks closed as follows: Dow Jones (+0.61%), S&P500 (+0.13%), Nasdaq (-0.08%). This morning in Asia, equities are flat to down. REMINDER: Today at 3:00pm the South African Reserve Bank will announce it's interest rate decision. JSE Major Sectors Resources 10 +1.27% Industrial 25 -0.99% Financial 15 +1.41% ________________________________________ Unum Capital Economic Calendar: www.unum.co.za ________________________________________ In currencies, the South African Rand trades as follows: USDZAR -0.23% to 14.66 GBPZAR +0.16% to 19.28 EURZAR +0.15% to 17.12 Gold trades at $1210 Platinum at $825 Brent Crude Oil at $79.64 International Markets This morning, Asian equities are as follows: Nikkei 225 (+0.24%) Hang Seng (-0.03%) Shanghai Composite (-0.12%) Latam Markets closed as follows: Merval 25 (+3.15%) Bovespa (-0.19%) INMEX (-0.20%) ________________________________________ Company News Life Healthcare Group Holdings Limited - Disposal of interest in Max Healthcare Institute Limited and withdrawal of cautionary announcement Further to the cautionary announcement released on the Stock Exchange News Service on 27 August 2018, shareholders are advised that the Company through its wholly owned subsidiary, Life Healthcare International Proprietary Limited, has accepted an offer from the global investment firm Kohlberg Kravis Roberts & Co. LP. for and on behalf of funds and/or investment vehicles managed by it together with its affiliates ("the Purchaser") to acquire its 49.7% stake in Max Healthcare Institute Limited ("Max Healthcare") ("the Transaction"). The Purchaser may complete the transaction through its portfolio company, Radiant Life Care Private Limited. 2. THE TRANSACTION Rationale Exiting its joint shareholding investment in Max Healthcare will further enable Life Healthcare to focus on its core operations in South Africa, UK, Poland and Western Europe. The Company will initially use the net disposal proceeds to settle debt as well as to invest in growth opportunities in its core markets. Terms of the Transaction Subject to the terms and conditions to be mutually agreed in a share purchase agreement, the Purchaser will acquire 266,997,937 equity shares held by Life Healthcare International Proprietary Limited, which represents 49.7% of the share capital of Max Healthcare, at Rupees 80 per share for approximately R4.3 billion before costs and the impact of exchange rate fluctuations (the R4.3 billion is an indicative amount based on the rate of exchange as at 19 September 2018, R1 = Rupees4.93). The final amount will be determined based on the rate of exchange when the transaction is finalised. The transaction is currently expected to be finalised and become effective before the end of December 2018. The business of Max Healthcare Max Healthcare is a leading hospital group in India. The business operates state of the art hospitals in Delhi-NCR, Punjab and Uttarakhand. Life Healthcare acquired an initial stake of 26% in Max Healthcare in 2012 and subsequently increased its stake to 46.25% in 2014. Following the acquisition of half of the International Finance Corporation’s interest in 2017, Life Healthcare increased its stake in Max Healthcare to 49.7%. The consideration The total consideration for Life Healthcare’s stake in Max Healthcare will be settled in cash. The Company will initially utilise the net proceeds (less estimated costs and taxes) from the disposal to settle debt as well as to invest in growth opportunities in the Company’s core markets. Financial effects of the Transaction Max Healthcare is equity accounted for in the published unaudited interim Group results. The investment’s book value as at 31 March 2018 amounted to R2.893 billion (30 September 2017: R2.960 billion). The net loss after tax for the period ended 31 March 2018 was R67 million (30 September 2017: R27 million). 3. CONDITIONS The implementation of the Transaction is subject to the fulfillment of the following: - the negotiation and entry into a mutually agreed share purchase agreement to be approved by the Boards of the Company and the Purchaser; - the satisfaction of the conditions to be set out in the share purchase agreement including necessary regulatory and other approvals required in India being obtained; - the waiver by Max India of its pre-emptive rights under the existing shareholders’ agreement; and - finalisation of Warranty & Indemnity Insurance on terms acceptable to the Purchaser. 4. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT Given that the material terms of the Transaction are contained in this announcement; caution is no longer required to be exercised by shareholders when dealing in their Life Healthcare shares. ________________________________________ Aus miners: BHP Billiton (+1.42%) Rio Tinto (+3.13%) S32 (-1.64%) FANGs Facebook (+1.72%) Amazon (-0.75%) Netflix (-0.19%) Google (+0.61%) FTSE Miners: Anglo American plc (+5.05%) BHP Billiton plc (+3.17%) Glencore plc (+3.53%) Alibaba Holdings (+3.82%) Tencent Holdings (+0.50%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk Please contact the Unum Trading desk for any trading related queries Tel: 011 384 2929
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by MariusGrobler301
ALSI sep18 FCO trading IdeaThe ALSI top40 Sep-18 futures contract will roll over to its dec-18 expiry tomorrow 20th sep. Trading Idea right now is that the 49800 technical 60min support level will attract buying for the market to get option hedgers that took trades short below 5000 to buy back above 50000 by FCO closing price I have initiated a long position at 49600 on September 17th and target for the long trade is the FCO closing price. a stop loss below 49200 will be exercised as well.
TVC:SA40Long
by T2TWELL
Unum Market Commentary: Equities Stable As Traders Shrug Off Unum Market Commentary: Equities Stable As Traders Shrug Off Trade Woes; Copper Rebounds On Tuesday, traders appeared to ignore the threat of a trade war, instead focusing on a softer US Dollar to drive sentiment throughout the session which saw equities largely higher on the day. On the JSE, the All Share Index added 0.15% while the Top 40 managed to stay in the green by 0.05%. On the leader-board, Anglo American Platinum added 4.70% while MTN recovered some of it's recent losses to add 4.52%. On the downside, Pepkor and Tiger Brands lost 2.94% and 2.84% respectively. In Europe, it was a mixed day with the DAX and CAC 40 adding 0.51% and 0.28% respectively while the FTSE100 lost 0.03%. After a rocky start to the week, equities in the US bounced back immediately with the major indices all higher for the session. This morning in Asia, markets are up strongly with the Nikkei, Hang Seng and Shanghai Composite all gaining over 1%. In the commodities space, Copper is starting to show signs of recovery, having rebounded sharply during yesterday's session, while Brent Crude Oil hold above the $79 level. JSE Major Sectors Resources 10 +0.25% Industrial 25 -0.26% Financial 15 +0.75% ________________________________________ Unum Capital Economic Calendar: www.unum.co.za ________________________________________ In currencies, the South African Rand trades as follows: USDZAR -0.32% to 14.90 GBPZAR -0.29% to 19.60 EURZAR -0.20% to 17.39 Gold trades at $1208 Platinum at $820 Brent Crude Oil at $79.06 International Markets This morning, Asian equities are as follows: Nikkei 225 (+1.19%) Hang Seng (+1.47%) Shanghai Composite (+1.34%) Latam Markets closed as follows: Merval 25 (+3.05%) Bovespa (+1.99%) INMEX (+0.72%) ________________________________________ Company News Phumelela Gaming & Leisure Limited - Resignation of Chief Executive Officer In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited, the board of directors of Phumelela Gaming and Leisure Limited ("the Board") hereby notifies its shareholders that Mr Rian du Plessis has tendered his resignation as CEO of Phumelela Gaming and Leisure Limited (“the Company”) for personal reasons, effective from 17 September 2018. Rian has committed to assist his successor until the end of March 2019 to ensure a smooth transition. Rian has full confidence in the Company’s executive management team, underlying business fundamentals and strategic direction and has undertaken not to dispose of any Phumelela shares held directly or indirectly by him, his family or otherwise in the foreseeable future. The Board and management team would like to thank Rian for his valued service and contribution to the Company over the past ten years. He led the development of a sophisticated business with multiple revenue streams and has formed a management team supporting long term stability and growth. The Board wishes Rian every success in his future endeavours. The Board is pleased to advise that Mr John Stuart, the current Executive Director: International Operations, has been appointed to fulfil the role as CEO. With more than 39 years of experience in the horse racing and gaming industry, the Board welcomes John’s increased participation in the business and looks forward to his ongoing contribution. The Company’s financial results announcement scheduled for 5 October 2018 will be delivered by the new CEO. ________________________________________ Aus miners: BHP Billiton (+2.99%) Rio Tinto (+2.99%) S32 (+1.97%) FANGs Facebook (-0.17%) Amazon (+1.73%) Netflix (+4.94%) Google (+0.63%) FTSE Miners: Anglo American plc (+1.91%) BHP Billiton plc (+1.08%) Glencore plc (+2.78%) Alibaba Holdings (-1.41%) Tencent Holdings (+1.70%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk For any trading related queries or advice, please contact the Unum trading desk Tel: 011 384 2929
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by MariusGrobler301
Unum Market Commentary: Global Equities Decline In Risk-Off It was a risk-off start to the trading week for global equities as new rounds of jabs between the United States and China regarding trade saw Asian equities attract sellers early in the session, with the the major Hang Seng and Shanghai Composite Indices losing over 1% each while the Nikki bucked the trend, adding 1.19%. In Europe, markets continued with the bearish undertone as the DAX lost 0.23%, lead by Linde while the FTSE 100 Index shed a marginal 0.03% weighed down by Hikma Pharmaceuticals. On the local bourse, the All Share Index was lower by 0.50% while the Top 40 Index shed 0.48%, lead lower by Sanlam (-3.41%) and RMIH (-3.25%) while Kumba Iron Ore saw a gain of 1.60%. Overnight, US equities were sharply lower, with the NASDAQ Composite declining by 1.43% while this morning Asian Equities are mixed. JSE Major Sectors Resources 10 +0.37% Industrial 25 -0.43% Financial 15 -1.74% ________________________________________ Unum Capital Economic Calendar: www.unum.co.za ________________________________________ In currencies, the South African Rand trades as follows: USDZAR +0.28% to 14.94 GBPZAR +0.28% to 19.65 EURZAR +0.14% to 17.46 Gold trades at $1202 Platinum at $800 Brent Crude Oil at $77.56 International Markets This morning, Asian equities are as follows: Nikkei 225 (+1.63%) Hang Seng (-0.65%) Shanghai Composite (+0.25%) Latam Markets closed as follows: Merval 25 (+3.25%) Bovespa (+1.80%) INMEX (-0.46%) ________________________________________ Company News Naspers Limited - Listing and Unbundling of Video Entertainment Business as Multichoice Group on the JSE Naspers today announced its intention to list its Video Entertainment business separately on the Johannesburg Stock Exchange (JSE) and simultaneously to unbundle the shares in this business to its shareholders. The new company will be named MultiChoice Group Ltd ("MultiChoice Group") and will include MultiChoice South Africa Holdings (Pty) Ltd (and its subsidiaries, associates and/or affiliates), MultiChoice Africa Holdings B.V. (and its subsidiaries, associates and/or affiliates), MultiChoice Botswana (Pty) Ltd, MultiChoice Namibia (Pty) Ltd, NMS Insurance Services SA Ltd, (the aforesaid entities collectively "MultiChoice"), the African division of Showmax B.V. (and its subsidiaries, associates and/or affiliates), Irdeto Holdings B.V. (and its subsidiaries, associates and/or affiliates) and Irdeto South Africa (Pty) Ltd (collectively "Irdeto"). This marks a significant step for the Naspers Group as it continues its evolution into a global consumer internet company. Listing MultiChoice Group via an unbundling is expected to unlock value for Naspers shareholders and at the same time create an empowered, top 40 JSE-listed African entertainment company. (Extract from Stock Exchange News Services) Rhodes Foods Group - Trading update and trading statement for the year ending 30 September 2018 Trading update The increasingly challenging local economic environment and the prolonged drought in the Western Cape have adversely impacted the group’s regional and international performance. Regional segment (South Africa and the rest of Africa) Trading conditions showed a marked deterioration in the second half of the group’s financial year as declining consumer disposable income resulted in a sharp slowdown in sales growth, in line with the pressure being experienced in the food retail sector. Despite the tougher trading environment, market shares have been maintained or grown. - The pie category has proven to be resilient in the current consumer slowdown. However, the turnaround in Ma Baker has been slower than expected and the business is anticipated to report a small loss for the full year. - Dry foods (formerly Pakco) continues to perform well and gain momentum from the relaunch of its brand portfolio earlier in the year. - Escalating meat prices have contributed to margin dilution in Bull Brand. - Fruit juices have shown good growth in an intensely competitive environment. Trading in the sub-Saharan Africa markets remains tough owing to poor economic conditions and liquidity constraints in some major markets. The regional operating margin for the second half is anticipated to be at a similar level to the 7.8% reported for the first half, although the margin for the first six months was net of certain once-off costs. International segment International revenue will show an increase for the year due to improving export volumes. Industrial puree and concentrate pricing has remained weak and margins continued to be impacted by increased canned fruit product costs as a result of the drought in the Western Cape over the last two seasons. The higher canned fruit costs could not be recovered through price increases and this together with the currency impact has had a material impact on profitability which will contribute to the international segment posting a loss for the year. Trading statement In addition to the trading performance, the group’s earnings will be adversely impacted by increased interest payments which are expected to be between R26 million and R28 million higher than the previous year. This relates mainly to the funding for the acquisition of Ma Baker, the increased capital investment programme and lower levels of cash generated as a result of the lower profit over the past year. Earnings have benefited by R11 million from an income tax rebate relating to capital projects in the current year and the release of an over-provision for prior years. As a result of these factors outlined above, management expects headline earnings for the year ending 30 September 2018 to be between 28% and 38% lower than the R237.0 million reported for the previous year. Earnings per share measures have been impacted by the 8.1 million or 3.3% increase in the weighted average number of shares in issue over the prior year relating to the issue of shares for the capital raise and the acquisition of Pakco in the previous year. ________________________________________ Aus miners: BHP Billiton (-1.11%) Rio Tinto (-0.32%) S32 (-0.13%) FANGs Facebook (-1.17%) Amazon (-3.15%) Netflix (-3.90%) Google (-1.55%) FTSE Miners: Anglo American plc (+0.09%) BHP Billiton plc (+0.17%) Glencore plc (-0.40%) Alibaba Holdings (-3.62%) Tencent Holdings (-2.44%) Share Link: bit.ly/JoinUnum ________________________________________ Please contact the Unum trading desk for any trading related queries : 011 384 29 29
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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
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by MariusGrobler301
Unum Market Commentary: Global Equities Firmer As Dollar Weakens On Thursday, South African equities managed to bounce back with a 0.38% gain for the All Share Index while the Top 40 Index managed to add 0.35% for the session as emerging market assets found support on the back of a weaker US Dollar driven softer inflation data which also curtailed expectations of aggressive rate increases by the US Federal Reserve. We also saw the Turkish Central Bank raise interest rates by 6.25%, helping the Lira rally which then filtered through to the Rand which saw it's best level for September, testing R14.62 on the day. Stocks that performed well included Naspers (3.31%), South 32 (2.27%) and RMI (2.24%) while Aspen Pharmacare shares experienced aggressive selling pressure as it released it's full year results which came in below expectations which it also announced the sale of it's Nutritionals business to Lactalis Group for EUR739.8 million. On the day the shares closed lower by over 17%, following a slump of at least 25% on an intraday basis. This morning in Europe, futures poit to a positive open, following through from the rebound in Asian equities. JSE Major Sectors Resources 10 -0.14% Industrial 25 +0.61% Financial 15 +0.21% ________________________________________ In currencies, the South African Rand trades as follows: USDZAR -0.03% to 14.76 GBPZAR -0.01% to 19.36 EURZAR +0.02% to 17.26 Gold trades at $1210 Platinum at $808 Brent Crude Oil at $78.18 International Markets This morning, Asian equities are as follows: Nikkei 225 (+1.19%) Hang Seng (+1.01%) Shanghai Composite (+0.03%) Latam Markets closed as follows: Merval 25 (+0.94%) Bovespa (-0.58%) INMEX (+0.88%) ________________________________________ Company News ASPEN PHARMACARE HOLDINGS LIMITED - Reviewed provisional financial results, announcement of Nutritionals Business disposal and retraction of cautiionary Aspen improved revenue by 3% to R42,6 billion and grew normalised headline earnings per share ("NHEPS") by 10% to 1 605 cents in the year ended 30 June 2018. At constant exchange rates ("CER") revenue was up 5% and NHEPS increased 10%. The Group's performance was underpinned by strong operating cash flows with a conversion rate of operating profits to cash of 105% being achieved. Lower earnings in the second half of the year than in the first half were primarily influenced by the unfavourable impact of the strengthened ZAR. At CER, revenue in the second half of the financial year was in line with that of the first half. However, the stronger ZAR in the second half resulted in ZAR reported second half revenue being lower by R1,3 billion. Significant factors influencing performance for the year were as follows: - Underlying positive growth in Commercial Pharmaceuticals; - Strong growth in China in the first full year of operation in that country; - The inclusion for the full year of the Anaesthetics portfolios acquired during the course of the prior year and the margin benefit of the residual rights to the Astra Zeneca ("AZ") Anaesthetics acquired with effect from 1 November 2017; - A decline in manufacturing revenue and profitability; and - Additional operating expenditure related to the development of structures in China and Japan. DIVESTMENT OF GLOBAL NUTRITIONALS BUSINESS TO LACTALIS FOR EUR739,8 MILLION With reference to Aspen's announcement of 29 January 2018, wherein Aspen advised that it had undertaken a strategic review of its Global Nutritionals Business predominantly carried on in Latin America, Sub-Saharan Africa and Asia Pacific under the S-26, Alula and Infacare brands ("Nutritionals Business") and its cautionary announcement of 11 September 2018, Aspen is pleased to announce that it has concluded an agreement to divest of its Nutritionals Business to the Lactalis Group, a leading multinational dairy corporation' based in Laval, France, for a fully funded cash consideration of EUR739,8 million/R12,9 billion (translated at ZAR17,4/EUR) ("the Transaction"). The Lactalis Group is a privately owned, global leader in the dairy industry with revenue of EUR18,4 billion, sales in over 200 countries, approximately 80 000 employees and 246 industrial plants in 47 different countries. Lactalis' strategic intent is to develop a global infant nutritional business to complement their existing global product range. The transaction is considered to be a compelling opportunity for the transferring Aspen employees, as well as the shareholders of both Aspen and Lactalis. In terms of the Transaction, the disposal of the Nutritionals Business will comprise the following elements: - Intellectual property and any related goodwill presently owned by: - Aspen Holdings and Pharmacare Limited in respect of the South African and Sub-Saharan Africa Nutritionals Businesses; and - Aspen Global Incorporated in respect of the Latin American and Asia Pacific Nutritionals Businesses; - Tangible assets (including plant, leased immovable property, equipment, associated fixed assets and inventory) presently owned by various Aspen Group companies in respect of the South African, Sub-Saharan Africa and Latin American Nutritionals Businesses; - Product registrations and retail registrations relating to Aspen's nutritional products; - Shares in companies conducting Aspen's Nutritional Business across Asia Pacific (including the acquisition of shares held by joint venture partners in New Zealand and Hong Kong); and - Transfer of dedicated Nutritionals staff employed within each of the geographical regions. Rationale Aspen's disposal of the Nutritionals Business will allow the Aspen business units in Asia Pacific, Latin America and Sub-Saharan Africa to dedicate all of their time and attention to their core pharmaceutical businesses. This heightened focus is expected to drive increased business efficiency and performance. Aspen believes that Lactalis' entrepreneurial spirit and commitment to develop a leading global position in infant nutrition will provide the Nutritionals Business and the transferring Aspen employees with exciting future opportunities for growth and development. ________________________________________ Aus miners: BHP Billiton (+1.63%) Rio Tinto (+1.22%) S32 (+1.63%) FANGs Facebook (-0.40%) Amazon (-0.01%) Netflix (-0.49%) Google (+0.90%) FTSE Miners: Anglo American plc (+1.66%) BHP Billiton plc (+0.17%) Glencore plc (+1.49%) Alibaba Holdings (+2.52%) Tencent Holdings (+2.04%) 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
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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
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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
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by MariusGrobler301
Unum Market Commentary: Results and Rand Lift JSE Financials; Gl On Thursday a stronger South African Rand helped to lift local shares, keeping the All Share Index in the green by 0.05%. On the day, the local currency traded in a 30c range versus the US Dollar, reaching a low of R15.53 and a high of R15.23. Providing support was banking group Firstrand that released it's results for the year ended 30 June 2018, showing a 12% increase in Diluted Head Earnings Per Share while return on equity came in slightly lower but still at a healthy 23%. Also among the winners were Discovery while other banks such as Nedbank, Standard Bank and Absa added 3.25%, 2.49% and 2.41% respectively. On the downside Kumba Iron Ore, Sappi and Nepi Rockcastle were weaker by 4.85%, 3.22% and 2.76% respectively. In Europe, market continued to slide, with the DAX, FTSE 100 and CAC40 lower by 0.71%, 0.87% and 0.31% respectively. This morning in Asia, concerns around a trade war continue to weigh on markets, with Japan's Nikkei 225 index leading the market lower by a negative 0.92%. JSE Major Sectors Resources 10 -1.05% Industrial 25 +0.04% Financial 15 +1.69% ________________________________________ Join the Unum Trading Desk today, 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 +0.07% to 15.33 GBPZAR +0.07% to 19.83 EURZAR +0.12% to 17.83 Gold trades at $1206 Platinum at $789 Brent Crude Oil at $76.40 International Markets This morning, Asian equities are as follows: Nikkei 225 (-0.92%) Hang Seng (-1.19%) Shanghai Composite (-0.12%) Latam Markets closed as follows: Merval 25 (+4.10%) Bovespa (+1.76%) INMEX (-0.23%) ________________________________________ Company News Sanlam Limited - Interim Results for the six months ended 30 June 2018 Key features of the 2018 interim results Earnings - Net result from financial services increased by 8% (up 10% in constant currency) New Business - Net value of new covered business up 1% to R791 million (up 4% on consistent economic basis) - Net new covered business margin of 2,46% (2,61% in 2017) - New business volumes declined by 1% to R110 billion (in line with 2017 in constant currency) - Net fund inflows of R17,2 billion compared to R18,9 billion in 2017 Group Equity Value - Group Equity Value per share of R60,90 - Annualised Return on Group Equity Value per share of 13,7% - Adjusted annualised Return on Group Equity Value per share of 18,2%; exceeding target of 13% Capital management - Executing on our African strategy - Acquisition of remaining 53% stake in Saham Finances awaiting certain regulatory approvals, anticipated before end of 2018 - R5,5 billion raised at favourable share price to de-risk transaction - Discretionary capital of R9,9 billion at 30 June 2018 committed to acquisition - Planned 5% BBBEE share issuance will provide remainder of funding requirement and restore discretionary capital to appropriate level - Sanlam Group solvency cover ratio of 2,3 times; Sanlam Life Insurance Limited solvency cover ratio for covered business of 2,3 times Dividend - No interim dividend declared in line with Group policy ________________________________________ Aus miners: BHP Billiton (-1.15%) Rio Tinto (+1.40%) S32 (-0.86%) FANGs Facebook (-2.78%) Amazon (-1.83%) Netflix (+1.55%) Google (-1.26%) FTSE Miners: Anglo American plc (-1.83%) BHP Billiton plc (-4.55%) Glencore plc (+2.56%) Alibaba Holdings (-2.65%) Tencent Holdings (-0.83%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk Please feel free to contact the trading desk at any time : 011 384 29 29
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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
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by MariusGrobler301
Unum Market Commentary: Global Equities Mixed As Traders Assess On Friday, the South African equity market continued to soften following the sharp sell-off seen on Thursday. For the session, the All Share Index closed lower by 0.23% while the Top 40 index shed 0.35%. These declines were led by South 32 (-4.17%), AB Inbev (-2.60%) and Naspers (2.51%). On the upside, Bidvest, Bidcorp and Woolworths saw strong buying activity which saw these shares gain 4.16%, 3.69% and 3.28% respectively. On the currency front, the Rand traded near it's year-to-date lows, closing the trading week at R14.68 versus the US Dollar. In commodities, Brent Crude Oil continued it's move higher, closing near it's one-month high of $78.03, while Copper continued to trade near it's year-to-date lows, finishing the trading week at $2.64. This morning, Asian markets are on the back foot with the Nikkei 225, Hang Seng and Shanghai Composite lower by 0.57%, 0.93% and 0.94% respectively. JSE Major Sectors Resources 10 -0.25% Industrial 25 -0.77% Financial 15 +0.76% ________________________________________ 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 +0.49% to 14.75 GBPZAR +0.26% to 19.07 EURZAR +0.49% to 17.12 Gold trades at $1204 Platinum at $786 Brent Crude Oil at $77.40 International Markets This morning, Asian equities are as follows: Nikkei 225 (-0.57%) Hang Seng (-0.93%) Shanghai Composite (-0.94%) Latam Markets closed as follows: Merval 25 (+9.49%) Bovespa (+0.36%) INMEX (-0.16%) ________________________________________ Company News Old Mutual Limited - Unaudited Condensed Group Interim Results for the six months ended 30 June 2018 - Results from operations (RFO) of R4,848 million, up 7% (HY 2017: R4,530 million - Adjusted headline earnings (AHE) of R5,393 million, marginally up on prior year (HY 2017: R5,359 million - AHE per share of 112.3 cents per share, in line with prior year - IFRS profit after tax attributable to equity holders of the parent of R10,648 million up 42% (HY 2017: R7,503 million) mainly due to the accounting effects of the sale and distribution of Quilter shares - Declaring first interim dividend of 45 cents per share, representing 40% of AHE, in line with our dividend policy - Declaring special dividend of 100 cents per share - Funds under management (FUM) up 2% to R1.097 billion - Net client cash flow (NCCF) of R9.4 billion, an increase of R7.8 billion (HY 2017: R1.6 billion) - RoNAV of 17.5%, down from 19.4% reflecting lower investment returns. - Group solvency ratio of 164%, reflecting capital resilience of the Group ________________________________________ Aus miners: BHP Billiton (-0.51%) Rio Tinto (-1.20%) S32 (-0.57%) FANGs Facebook (-1.08%) Amazon (+0.52%) Netflix (-0.89%) Google (-1.80%) FTSE Miners: Anglo American plc (-2.15%) BHP Billiton plc (-1.34%) Glencore plc (-2.90%) Alibaba Holdings (+0.23%) Tencent Holdings (-3.06%) Share Link: bit.ly/JoinUnum ________________________________________ The Unum Capital Trading Desk
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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
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by MariusGrobler301