(iStock)
Johannesburg
- Equity markets opened the day mixed as the Nikkei and Shanghai stock
exchanges drifted lower on the day. However, the Hang Seng and the
Asx200 were firmer in line with the positive move in the US markets
overnight.
The JSE was quick out of the starting blocks as the local bourse began to make ground to catch up with world markets.
What a week this has been on the local bourse! Steinhoff [JSE:SNH],
continues to make headlines for all the wrong reasons. On Friday
afternoon reports indicated that Christo Wiese's investment vehicle
Titan Group Limited has instituted a R59bn claim against SNH.
This
saw the share price tumbling 11% to trade below R2 per share, with the
embattled retailer closing the day 11.31% lower at 196c.
Disappointing
news out of Consol on Wednesday showed that the multi-purpose glass
maker had shelved plans to relist on the JSE after a 9-year hiatus.
Consol
management cited unfavourable market conditions as the main reason for
pulling out from the listing, but there could be more than what meets
the eye in this case.
Market
participants have highlighted shareholder leverage, mispricing of the
share and existing shareholders' unwillingness to sell a bigger stake in
the business.
Inflation
from the factory gate in South Africa increased by 3.7% down from 4.2%.
This decline in producer price inflation (PPI) was better than the
market forecast of 4%. It indicated that prices from the factory gate
are increasing at a slower-than-expected pace, which would be positive
for the struggling consumer market in South Africa.
In corporate news, apparel retailer Mr Price [JSE:MRP],
indicated it has had a good 6 months after it revealed to the market
that its basic earnings per share would increase by 20% to 24%.
The
Durban-based retailer has been making a steady recovery after having
recorded back-to-back earnings that missed market expectations. The
retailer appears to have turned the corner, despite increased
competition from international participants and online alternatives.
The gainers on the day were Hospitality Property Fund [JSE:HPB], which gained 7.6% today to trade at 1175c. Strong gains were also recorded in Capital and Regional [JSE:CRP], Texton Property Fund [JSE:TEX], and PSG Konsult [JSE:KST], up 7.02%, 5.12% and 4.97% respectively.
The major losers on the day were Steinhoff [JSE:SNH], Net1 [JSE:NT1], Tongaat Hulett [JSE:TON], and Liberty Two degrees [JSE:L2D].
SNH
slid 11.31% to trade at 196c as the retailer came under pressure after
the litigation announcement by Titan group. NT1, TON and L2D were 8.94%,
5.95% and 5.41% respectively lower on the day.
The
JSE Top-40 Index was firmer on the day to trade at 50 684 points,
gaining 0.89% from its close yesterday. The broader JSE All-Share Index
was up 0.82% to trade at 57 453 points.
The Resource20 Index was weaker up 0.4%, while the Industrial Index was up 0.9% as the Financial Index eased 1.28%.
The
rand was flat on the day and was trading at R12.43/$ at 17:00 CAT.
South African 10-year bond (R186) yields were softer today and were bid
at 8.21%, down from 8.30% yesterday. US 10year treasury yields traded
below the 3% mark today. as inflation fears eased on Thursday.
Brent crude was firmer on the day and was trading at $73.69 per barrel at 17:00 CAT, off its intraday highs of $74.15/barrel.
Company Data
HOSPITALITY PROPERTY FUND LIMITED [JSE:HPB]
| Last traded | 12 |
| Change | 1 |
| % Change | 8 |
| Cumulative volume | 150254 |
| Market cap | 0 |
PSG KONSULT LIMITED [JSE:KST]
| Last traded | 10 |
| Change | 0 |
| % Change | 5 |
| Cumulative volume | 170717 |
| Market cap | 0 |
TONGAAT HULETT LIMITED [JSE:TON]
| Last traded | 88 |
| Change | -6 |
| % Change | -6 |
| Cumulative volume | 445302 |
| Market cap | 0 |
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