On Friday, the All Share Index edged lower by 0.14% despite a 1.62% rally in our resource counters on the back of further weakening in the rand. Northam Platinum jumped 3.11%, while diversified miners Glencore and Anglo American both finished 2.9% stronger. On the losing side, Steinhoff dropped a further 4.26% and closed at R56.00 per share, while Massmart and Richemont posted losses of 3.04% and 2.46%, respectively.
On the company front, Telkom indicated in interim results for the six months ended 30 September 2017 that headline earnings per share (HEPS) decreased by 7.4% to 303.9 cents compared to the prior corresponding period. Telkom dropped 6.39% and closed at R50.50 per share. Richemont announced its unaudited results for the six month period ended 30 September 2017 highlighting that sales increased by 10% at actual exchange rates to €5.605 billion and by 12% at constant exchange rates. Cash flow from operations increased by 66% to €1.108 billion, while operating profit increased by 46% to €1.166 bilion. Richemont closed the day 2.46% weaker at R125.08 per share. Taste Holdings advised shareholders that they are still in the process of evaluating alternatives to settle its debt. Novus Holdings indicated in interim results that HEPS increased by 13.3% to 71.7 cents per share. In a trading statement for the six months ended 30 September 2017, Tsogo Sun advised shareholders that HEPS is expected to be between 22% and 24% higher, while revenue is expected to increase by between 0% and 2% compared to the prior comparative period.
On the economic front, the UK’s deficit on trade in goods and services narrowed by £0.7 billion to £2.75 billion in September which was way below expectations of a £4.6 billion gap. Manufacturing production in the UK increased 2.7% year-on-year in September, above market expectations of 2.4%, while industrial production went up 2.5% year-on-year. Construction output rose 1.1% in the UK in September which was below the consensus forecast of a 2.2% gain. The University of Michigan’s consumer sentiment for the US was revised down to 100.7 in October. Total value traded for the day was R16.1 billion.
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