The All Share Index opened higher by 393.10 points or 0.66% on Monday as the weaker domestic currency and firmer oil price bolstered commodity stocks. Our market remained resilient throughout the afternoon and closed the day 0.57% in the black. Financials were stronger by 0.08%, with the likes of Standard Bank and Firstrand both trading higher by 1.27% and 0.76% respectively. Resources rallied and closed the trading session 1.71% stronger, led by BHP Billiton and Anglo American which gained 2.64% and 2.41% respectively and the Gold miners followed suit by closing 2.26% in the black. The Iron Ore producers performed solidly with Assore and Kumba Iron Ore finishing higher by 2.73% and 2.46% respectively.
On the company front, AngloGold Ashanti released a market update report for the quarter ended 30 September 2017 and advised shareholders that third-quarter gold production rose 11% year-on-year to 997 000 ounces with free cash flow of $88m in contrast to the $41m outflow in the previous quarter. The company advised that net debt to adjusted EBITDA was down to 1.49 times from 1.56 times in the second quarter of 2017 and that the restructuring of the SA operations remains on track. The stock closed the day 3.42% in the black. Raubex announced their results for the half year ending 31 August 2017 and the salient features were a 2% decline in revenue to R4.67bn and a 0.4% decline in HEPS to 131.1c compared to the 130.6c disclosed for the previous corresponding period. An interim dividend of 45c was declared and the stock closed unchanged. Barloworld released a trading update for the full year ended 30 September 2017 and advised shareholders that HEPS from continuing operations would be between 925c and 1009.1c being an increase of between 10% and 20% compared to the 840.9c disclosed for the prior comparative period. Redefine announced their results for the full year ending 31 August 2017 and the REIT advised shareholders that operating margin had improved to 82.7% and that their property asset platform had expanded by R11.4bn to R84.1bn. Total revenue showed significant growth of 17.3% and operating costs were stable at 34.2% of contractual rental income. Their Net Asset Value (NAV) declined to R10.2253 from the R10.5574 disclosed on 31 August 2016. A final distribution of 47.18c was declared, bringing the full year distribution to 92c resulting in year-on- year growth of 7.0% which is in line with market guidance, and the REIT closed 2.01% in the red. Redefine International advised shareholders that they’ve agreed to dispose of their German retail portfolio to Patrizia Immobilien AG for a consideration of €205m, which represents a 10.8% or €20m premium to the 31 August 2017 book value. Steinhoff announced that Christo Wiese had acquired 20 000 single stock futures contracts on 3 November 2017 which represents 2m Steinhoff ordinary shares at an average price of R61.46394.
On the economic front, the Eurozone PMI Composite Output Index stood at 56 in October 2017, compared with the flash estimate of 55.9 and September’s four-month high of 56.7 whilst the services PMI Activity Index came in at 55 in October 2017, compared with the flash estimate of 54.9 and September’s final reading of 55.8. Industrial producer prices in the Euro Area rose 2.9% year-on-year in September 2017, following a 2.5% increase in August and beating market expectations of 2.8%. New car registrations in the UK decreased 12.2% year-on-year to 158 192 in October 2017, the seventh consecutive month of decline, as falling confidence among buyers continued to impact the market. Total value traded for the day was recorded at R16.458bn
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