The Week Ahead 14 February

14 February 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


Economic catalysts

Market overview

The All-Share index looks to complete its seventh day of consecutive gains, moving within touching distance of its all-time highs. Resource counters are once again at the forefront of this week’s gains, following higher commodity prices while the rand remains weak although well off this year’s lows.

Mining production figures reported for South Africa in December 2013 showed a strong 12% annualized growth. The main contributions to the increase came from iron ore followed by platinum group metals (PGMs) and gold.

Retail sales figures at constant prices were a beat on consensus, with year on year growth at 3.5%, while manufacturing production for 2013 increased a lackluster 1.5%.

In the US, Janet Yellen addressed the public for the first time in her new role as Federal Reserve Bank chairman. Mrs. Yellen highlighted that she remained committed to her predecessor’s path of economic stimulus relative to growth and employment conditions in the US.

The supporting data this week out of the world’s largest economy was subpar, with weekly unemployment claims being worse than expected, while month-on-month retail sales showed an unexpected contraction. The news has witnessed a softer dollar and in turn higher commodity prices.

Source: IG Insight, as of  14/02/2014 11:40

Top movers

Source: IG Insight, as of 14/02/2014 11:20

The recent market theme continues as resource counters remain favoured in our local market, while retail counters continue to decline.

A weaker dollar has followed subpar US economic data, which has witnessed spot gold rebound back above the $1300/oz mark.  Local gold miners have benefited from the strong move in dollar denominated gold especially while the rand remained weak, albeit much improved from this year’s worst levels.

General retailers find themselves under pressure as sentiment is once again hampered by sector specific news. JD Group announced in its results that it would look to recapitalize its business through a rights offer as bad debts grow amidst a pressured consumer, which has affected the company’s earnings.

Investors are reminded of the recent African Bank/Ellerines impairment and subsequent recapitalization and draw concerns around retailers with an affinity for credit sales.    

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:

Truworths International Ltd






How leverage works

Learn how you can use leverage to gain a large exposure to a financial market with a relatively small initial outlay. Leverage can magnify your profit, but we explain that it’s important to use it with care, because it also increases your risk of loss.

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

Data provided by I-Net Bridge