The All Share Index opened higher by 161.90 points or 0.27% on Monday as our weaker domestic currency bolstered Rand hedges and dual listed stocks. Our market failed to hold onto its gains throughout the afternoon and closed the day 0.08% in the black. Financials were marginally softer by 0.10%, with the likes of Standard Bank and Barclays both trading lower by 0.83% and 0.21% respectively. Resources edged higher by 0.38%, led by Anglo American which gained 0.67% and the Gold miners followed suit by closing 1.07% in the black. The Iron Ore producers sold off heavily with Assore and Kumba Iron Ore finishing weaker by 5.85 and 2.15% respectively.
On the company front, Tongaat released their results for the half year ending 30 September 2017 and the company reported that revenue increased 4.5% to R8.118bn, operating profit increased 9% to R1.471bn and HEPS increased 4.96% to 573.8c compared to the 546.7c disclosed for the previous comparative period. The company declared a gross dividend of 100c and the stock closed 0.88%lower. Vodacom released their results for the half year ending 30 September 2017 and reported that group revenue increased by 4.6% to R42bn, South African revenue growth accelerated to 7.7% boosted by stronger device sales, 4.3m subscribers were added and HEPS was up 1.1% to 445c. A gross dividend of 390c was declared and the stock closed 3.35% in the red. Lewis Group announced their results for the half year ending 30 September 2017 and disclosed that sales were up 5%, the company’s gross margin expanded to 40.9% and HEPS declined 15.8% to 163.9c compared to the 194.8c accomplished for the prior corresponding reporting period. Datatec announced their results for the half year ending 31 August 2017 and reported revenue from continuing operations of $1.84bn, EBITDA of $7.7m and underlying EPS of 1.4 US cents. Life Healthcare released a trading update advising shareholders that HEPS for the year ending 30 September 2017 are expected to be between 71.6c and 86c, being a decline of between 60% and 52% compared to the adjusted HEPS of 179.1c for the previous comparative period.
On the economic front, the German selling prices in wholesale trade increased by 3.0% in October 2017 from the corresponding month of the preceding year. In September 2017 and in August 2017 the annual rates of change were +3.4% and +3.2% respectively. US households’ expectations for consumer price inflation over the coming 12 months rose to 2.61% in October 2017 from 2.54% in September and these inflation expectation averaged 2.85% from 2017 until 2017. The US budget deficit widened to $63.2bn in October 2017 from $45.8bn in the same month of the previous year, and slightly above market expectations of $62bn. Total value traded for the day was recorded at R15.923bn
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