7 - 11 September 2015
A look at local and international economic data, major events, economic releases and company news expected in the week to come.
By Shaun Murison, Market Analyst
The Bidvest Group has outperformed fellow blue chip peers following the release of the company’s full-year results. The Group saw strong sales growth in most of its divisions, although the stand out performance was realized from the food services operations, particularly in Europe and the U.K. Bidvest Group sales increased by 11% and operating profit by 8.6% over the full-year reporting period. A gross final dividend of 483c per share has been declared.
Anglo American Platinum (Amplats) is said to be in advanced talks with Sibanye Gold Limited in lieu of selling off its Rustenburg assets. In restructuring efforts, amidst a difficult trading environment, Amplats is looking at the possible sale or separate listing of the aforementioned assets.
The Mr Price Group saw a single day sell-off in excess of 13% following the release of a 21-week trading update. The negative reaction followed significantly slower than expected sales growth of 9% in the reporting period. The group has cited lower levels of consumer confidence, some poor fashion calls and the late onset of winter as being amongst the reasons for the slower than expected sales growth, which was realized.
The Sanlam Group saw normalized headline earnings per share increasing a marginal 4% over their interim reporting period. The strong performance in the comparative period was highlighted as providing a strong base of comparison while economic headwinds, particularly in South Africa (the groups largest market), were also said to have further dulled the current results.
|07-Sep||Adapt IT Holdings Ltd||Ex-Dividend||R0.109|
|07-Sep||AVI Ltd||Full-year 2015 Preliminary results||n/a|
|07-Sep||Barclays Africa Group Ltd||Ex-Dividend||R4.50|
|07-Sep||BHP Billiton Plc||Ex-Dividend||$0.68889|
|07-Sep||Blue Label Telecoms Ltd||Ex-Dividend||R0.31|
|07-Sep||City Lodge Hotels Ltd||Ex-Dividend||R2.30|
|07-Sep||Emira Property Fund||Ex-Dividend||R0.6962|
|07-Sep||Exxaro Resources Ltd||Ex-Dividend||R0.65|
|07-Sep||Gold Fields Ltd||Ex-Dividend||R0.04|
|07-Sep||Nedbank Group Ltd||Ex-Dividend||R5.37|
|07-Sep||Standard Bank Group Ltd||Ex-Dividend||R3.03|
|07-Sep||Shoprite Holdings Ltd||Ex-Dividend||R2.43|
|07-Sep||Sasol Ltd||Full-year 2015 results||n/a|
|07-Sep||Truworths International Ltd||Ex-Dividend||R1.69|
|08-Sep||Steinhoff International Holdings Ltd||Full-year 2015 results||n/a|
|09-Sep||MMI Holdings Ltd||Full-year 2015 results||n/a|
|10-Sep||Aspen Pharmacare Holdings Ltd||Full-year 2015 results||n/a|
|10-Sep||Discovery Ltd||Full-year 2015 results||n/a|
|10-Sep||RMB Holdings Ltd||Full-year 2015 results||n/a|
Source: Economic Calendar, as of 04/09/2015
South Africa’s trade balance data revealed a R397m deficit in July, while the previous month’s (June) trade surplus was revised lower to R5.5bn from R5.8bn. The figure sees a 12% increase in imports with only a 4.7% increase in exports resulting in the deficit figure. The accumulated deficit for 2015 is now considered at R25.2bn which is less than half that realized over the same period in 2014.
In China, manufacturing PMI data was slightly below consensus alluding to industry contraction, although the real disappointment to markets was the Caixin Services PMI data while declined significantly from the previous months reading and was far short of consensus estimates. The latter part of the week saw Chinese markets closed to mark the anniversary of Japan’s surrender in WWII.
In Europe, the European Central Bank (ECB) implied that it could expand and/or extend the current stimulus measures in place if necessary, as slower growth in China and emerging markets could negatively impact an already fragile recovery in the Eurozone. The ECB has already embarked on a bond-purchasing program until September 2016 to the amount of around $1 trillion.
In the U.S., trade balance data reflected a smaller than expected deficit of $41.9bn. ISM manufacturing PMI data fell short of consensus, although the services PMI data came in ahead of expectation. The all-important jobs data out of the world’s largest economy fell short of estimates with 173 000 (est. 215 000) new jobs being added to the non-farming payroll. The unemployment rate did however drop to the lowest rate (5.1%)witnessed in more than seven years.
The week ahead
The new week will see markets anticipating the reawakening of Chinese markets after being closed for the latter part of this week. China is set to report all-important trade balance data on Tuesday and inflation data on Wednesday.
In the U.S. Producer Price Index (PPI) and consumer sentiment data will be closely monitored at the end of the week (Friday). Further indications around the health of South Africa’s mining and manufacturing sectors will be assessed in Thursday’s production and sales reports.
|07-Sep||08:00||SA||Gold & foreign exchange reserves (gross)||-||$45.82bn|
|07-Sep||08:00||SA||Gold & foreign exchange reserves (net)||-||$41.01bn|
|09-Sep||10:30||GBP||Manufacturing production m/m||-||0.20%|
|10-Sep||11:30||SA||Mining: production & sales, July 2015||-||4.00%|
|10-Sep||13:00||SA||Manufacturing: production & sales, July 2015||-||-0.40%|
|10-Sep||13:00||GBP||MPC official bank rate votes||1-0-8||1-0-8|
|10-Sep||TBC||GBP||Official bank rate||0.50%||0.50%|
|10-Sep||TBC||GBP||MPC rate statement||-||-|
|11-Sep||16:00||USD||Prelim UoM consumer sentiment||-||91.9|
Source: Economic Calendar, as of 04/09/2015
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Source: INET BFA, as of 04/09/2015