The Week Ahead 21 February

21 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

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Company announcements

Dividends

Economic catalysts

Market overview

The JSE All-Share index has extended the previous week’s gains, moving into new high territory once again.

Flash Manufacturing PMI data out of China initiated temporary weakness in global markets on Thursday, as the data alluded to minor contraction in the regions manufacturing industry. Manufacturing and services PMI data out of Europe furthered Thursday’s setback, as readings fell short of consensus.

Equity markets quickly discounted the news and resumed strength, following a rebound in US indices which reacted positively to mixed economic news. US Philly Fed Manufacturing data indicated worsening manufacturing conditions in Philadelphia, while Manufacturing PMI data showed better than expected industry expansion in the US. Poor economic data over the last few weeks is currently being dismissed in the US on account of severe winter conditions adversely affecting the readings. 

Local Consumer Price Index (CPI) data showed 0.7% inflation for the month of January, while the annualised figure was recorded at 5.8%. The CPI number was worse than consensus estimates predicted, but remained within the 3% -6% targeted range.

The new week will bring a busy local economic calendar with a number of JSE listed companies releasing results, fourth quarter Gross Domestic Product (GDP) figures expected as well as a budget speech from finance minister Pravin Gordhan.

Source: IG Insight, as of  21/02/2014 11:20

Top movers

Source: IG Insight, as of 21/02/2014 11:07

This week witnesses a more diverse mix of shares in the top movers list.

African Bank Investments has seen a sharp rebound from recent lows after UBS raised its target price for the company to R10.60, and gave it a neutral rating.

BHP Billiton continued this year’s impressive gains after releasing strong interim results for the six months ending December 2013. Increased productivity and better Earnings Before Interest and Taxes (EBIT) margins now see BHP Billiton’s share price trading at all-time highs.

Truworths share price has rebounded from severely oversold levels after the company released its interim results. Revenue over the period grew 8%, with headline earnings per share increasing by 1%. The interim dividend was increased to 6%.

ArcelorMittal and Sanlam appear to be weaker on the back of profit taking from the recent gains which were catalyzed by improved earnings.

Broker consensus

Brokers view on the markets.

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Spotlight on equities

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

Nedbank Group Ltd

 

 

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