The Week Ahead

7 March 2014

Our regular look at the news making the headlines, using our market insight information and analysis tools.

By Shaun Murison, IG Market Analyst

View market data

Company announcements

Dividends

Economic catalysts

Market overview

The trading week was off to a shaky start as our local bourse reacted to poor Chinese Final Manufacturing PMI data, which alluded to minor industry contraction, and tensions mounted between the Ukraine and Russia.

The latter news witnessed investors move into safe havens assets such as gold and the US dollar, while emerging market currencies found themselves under pressure. However, these moves were unwound quickly as market participants became more confident that the Russia/Ukraine black sea debacle was under control.

Local Data

South African vehicle sales for February declined 3.1% as reported by NAAMSA (National Association of Automobile Manufacturers of South Africa). The figure follows on from a weak January reading, which witnessed a 6.8% decline.

HSBC composite PMI and Kagiso PMI manufacturing data both alluded to better than expected industry expansion in February.

Gross Gold and Foreign Exchange Reserves showed that $50.14bn is currently being held as the nation’s reserves, an improvement of the previous figure and better than consensus forecasts had predicted.

International Data

European Central Bank (ECB) president Mario Draghi left interest rates unchanged whilst reaffirming the commitment to maintaining low rates for an extended period.

In the US, Non-Farm Employment data showed that 175 000 jobs were added to the payroll last month, while the unemployment rate worsened marginally from 6.6% to 6.7%. Trade balance data revealed a trade deficit in line with expectation at $39.1bn.

Source: IG Insight, as of  07/03/2014 12:29

Top movers

Source: IG Insight, as of 07/03/2014 12:39

The top movers list bears testimony to a positive week in on our local exchange. Shares heading up the losses column show only minimal declines over the period, while shares heading up the gains column show significant share price increases.

Tiger Brands Ltd has rebounded sharply after last week’s decline. A Stock Exchange News Services (SENS) announcement highlighted that Coronation Asset Management’s funds managed on behalf of segregated clients, have increased its beneficial interest in Tiger Brands to 5.18% of securities in issue.

Exxaro Resources Ltd released full year results showing Headline Earnings Per Share (HEPS) growth of 4% over the period. The HEPS came in nearer the upper end of the -2% to +6% guided range and equated to a stronger 2nd half of the year as lower coal prices, a volatile exchange rate, logistical constraints as well as a R292 million impairment hindered the interim period.

The diversity of this week’s top movers (Industrial, Bank and Resource counters within the list) highlights the broad-based nature of the gains realised in our market, which have been responsible for our local bourse trading to new all-time highs once again. 

Broker consensus

Brokers view on the markets.

Click to view this week's broker consensus

 

 

Spotlight on equities

An analysis of upcoming company announcements, using our market insight information and analysis tools:

Sasol Ltd

AVI Ltd

 

 

Educorner

Measuring risk

When you trade, it’s important to assess the level of risk you can realistically take on.

View the guide now

Try our platform

Follow one of the links below for a quick look at our web-based platform and the range of markets on offer.

Domestic account

  • Explore our platform with no login
  • Search for your favourite shares and open deal tickets
  • Access charts and technical analysis tools

International account

  • Explore our platform with no login
  • Search for your favourite shares and open deal tickets
  • Access charts and technical analysis tools

Open a demo

If you're interested in finding out more about the range of markets available and the functionality of our trading platform, you can open a demo account. 

Domestic account

  • Trade with R100,000 practice funds for two weeks
  • Access charts and view our range of local markets
  • Trade online or via our mobile apps

International account

  • Trade with £10,000 practice funds for two weeks
  • Access charts and view live prices
  • Trade online or via our mobile apps

IG provides an execution-only service. The material on this website does not contain (and should not be construed as containing) investment advice or an investment recommendation, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of the above information. Consequently any person acting on it does so entirely at his or her own risk. The research does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. This communication must not be reproduced or further distributed. The price levels provided are derived from ProRealtime Charts (IT-Finance)

Broker consensus

Source: I-Net Bridge

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.