South African Markets - Factors to watch on Aug 20
Chinese shares clawed back up on Thursday after a two-week sell-off, giving a boost to Asian stock indexes and commodities, but many investors were nervous that the Shanghai slide may have more room to run.
The benchmark Shanghai Composite Index .SSEC was up 1.5 percent, helped by reports that the stock regulator had approved new mutual funds this week to help underpin the market that has slid nearly 20 percent since hitting a 14-month high earlier in the month. [.SS] Japan's Nikkei average .N225 was up 0.7 percent, while the MSCI benchmark of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 1 percent. [ID:nLK336095]
SOUTH AFRICAN MARKET
South Africa's rand fell slightly against the dollar on Wednesday but was off its day's low as risk aversion waned, while local stocks edged higher after a positive open on U.S. equities.
The JSE Top-40 index of blue chips .JTOPI rose 0.11 percent to 21,872.92 points and the broader All-share index lost 0.02 percent to 24,259.54 points. [ID:nLJ255599]
MTN (MTNJ.J)
MTN Group Ltd (MTNJ.J) says extends talks with Bharti Airtel (BRTI.BO) to September 30. [ID:nWEA7253] [ID:nBMA005630]
IMPALA PLATINUM (IMPJ.J)
The main South African miners' union said on Wednesday it would start an indefinite strike next week at Impala Platinum, the world's No.2 platinum producer, over a wage dispute.
South Africa is the world's biggest platinum producer. A strike at Impala Platinum could hurt broader investor sentiment as it follows a wave of industrial action in South Africa in the past few weeks that has led to above-inflation pay settlements South Africa's fourth biggest gold producer, DRDGOLD Ltd, said on Thursday annual gold production fell 20 percent after output at a key mine was suspended, while higher costs eroded its profit.
Looking ahead, DRDGOLD's Chief Executive Officer Niel Pretorius said the company would improve its underground operations to boost output. [ID:nLK374294]
CIPLA MEDPRO SA LTD (CMPJ.J)
Cipla Medpro SA said on Thursday first half headline earnings per share rose 8 percent to 15.3 cents. It added that revenue increased 19.8 percent to 555.4 million for the six months to end-June. [ID:nWEA7172]
EXXARO RESOURCES (EXXJ.J)
South African diversified miner Exxaro (EXXJ.J) on Thursday reported an 8 percent rise in first-half headline earnings per share, but said that lower prices and a stronger rand would weigh on second-half figures. Earnings at the company's coal business were boosted by higher sales to utility Eskom [ESCJ.UL] and international clients, but were hit by lower prices and weaker demand from local consumers other than Eskom. [nLK497236]
GRINDROD (GNDJ.J)
Africa's biggest shipping company Grindrod (GNDJ.J) posted a 56 percent fall in first-half headline earnings per share as the global economic slowdown hit cargo volumes and rates. Grindrod, which drives more than 80 percent of its profit from shipping resources such as iron ore, coal and fuel, said on Thursday headline EPS for the six months to end-June fell to 105.7 cents, in line with its own forecast for a 50-60 percent fall. [nLJ657822]
GOLD XAU=
Gold was steady above $940 an ounce on Thursday, underpinned by light physical buying as investors eyed the currency market for clues on the precious metal's direction. Spot gold XAU= stood at $941.90 an ounce at 0400 GMT, almost flat from New York's notional close of $941.55. It hit a three-week low below $930 per ounce on Monday. [GOL/]
WALL STREET
U.S. stocks rose on Wednesday, shaking off a slide in China's equity market, as investors responded favorably to a surprising drop in crude oil stockpiles that might suggest an improving demand outlook.
The Dow Jones industrial average .DJI gained 61.22 points, or 0.66 percent, to end at 9,279.16. The Standard & Poor's 500 Index .SPX rose 6.79 points, or 0.69 percent, to 996.46. The Nasdaq Composite Index .IXIC advanced 13.32 points, or 0.68 percent, to 1,969.24. [.N]
EMERGING MARKETS
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Some of the main stories out of the South African press:
BUSINESS DAY
- Stanlib, one of South Africa's biggest asset managers and investors in commercial property, questions viability of shopping centres
- Ailing state entities to ask Treasury for billions more
- South Africa's biggest solar energy project shelved by Eskom [ESCJ.UL] this year State holds back on arms manufacturer Denel's 1.7 billion rescue
- Transnet [TRANS.UL] unit 'ready to sign for 212 diesel engines'
- Independent power producers slam Eskom connection delays
