The All Share Index opened higher by 407.80 points or 0.69% on Wednesday in response to positive follow through on the Asian bourses. Our market continued to edge higher to close the day 0.91% in the black. Financials were stronger by 1.05%, with the likes of Nedbank and Firstrand both trading higher by 0.79% and 0.78% respectively. Resources rallied significantly by 2.67%, led by Anglo American and BHP Billiton which gained 4.01% and 3.03% respectively whilst the the Gold miners followed suit by closing 2.22% in the black. The Iron Ore producers performed solidly with Assore and Kumba Iron Ore finishing higher by 4.04% and 2.31% respectively.
On the company front, Old Mutual announced that the strategic minority shareholding to be retained in Nedbank has been agreed at 19.9% following on from the initial Old Mutual Managed Separation statements made on 11 March 2016 and the subsequent communication on 25 May 2017. The new South African holding company, to be named Old Mutual Limited, will have a Primary listing on the JSE and a secondary listing on the London Stock Exchange and the company will be listed at the earliest opportunity in 2018 following the publication of Old Mutual Plc’s 2017 full-year results announcement. The decrease in Old Mutual’s shareholding in Nedbank Group to 19.9% will be achieved via a distribution of the balance of Old Mutual’s majority shareholding to its shareholders post the listing. RECM and Calibre announced a trading statement for the half-year ended 30 September 2017 and advised shareholders that the company expects the NAV per share to be between R27.00 and R28.00, which represents an increase of between 20% and 25% compared to the NAV per share of R22.42 disclosed on 30 September 2016. Rebosis Property Fund announced that Sanlam Investment Management (SIM), on behalf of its clients has notified the company that accounts under its management have increased its holding in Rebosis A ordinary shares such that SIM now holds 10.12% of the A ordinary shares in the Company. Coronation released an announcement advising shareholders that the company’s total assets under management were R614bn as at 30 September 2017, compared to the R599bn disclosed as at 30 September 2016. Ascendis announced that the board of directors has decided to pursue an underwritten renounceable rights offer to shareholders. The company intends to raise R750m to settle outstanding deferred vendor consideration payments and the capital raising will be underwritten by their largest shareholder, Coast2Coast Capital.
On the economic front, the Nikkei Japan Manufacturing PMI came in at 52.8 in October 2017, higher than the preliminary estimate of 52.5 and following a final figure of 52.9 in September. Output increased the most since May, new orders went up solidly and new export orders from other Asian countries rose significantly. Manufacturing PMI in South Africa increased to 47.80 in October from 44.90 in September 2017 whilst total Vehicle Sales in South Africa increased to 51040 in October from 50644 in September 2017. The UK Manufacturing PMI rose to 56.3 in October 2017 from an upwardly revised 56 in September. Data from Mortgage Bankers revealed that mortgage applications in the US fell 2.6% in the week ending 27 October 2017 following a 4.6% drop in the previous period. The US Manufacturing PMI rose to 54.5 in October 2017 from 53.1 in September, beating market expectations of 53.5. Total value traded for the day was recorded at R24.774bn
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