After an initial "Trump slump" on Wednesday morning,
global markets rallied on the hope "Trumponomics" will live up to its
promises.
Tokyo’s Nikkei 225 index rebounded 6% on Thursday morning ahead of
the JSE’s opening after crashing 5.36% on Wednesday on the news of
Donald Trump’s US presidential election victory.
US markets bet that Trump’s policies would be good for pharmaceutical
and bank shares, sending both the S&P 500 and Nasdaq indices up
1.11%.
After an initial gloomy view, European markets also decided Trump may
be good for the US economy. Frankfurt’s DAX 30 closed 1.56% higher and
Paris’s CAC 40 1.49%.
The JSE’s all share index closed 0.55% higher on Wednesday after
initially following Asian markets down as US voting results trickled in.
Fashion chain The Foschini Group (TFG) is scheduled to release its
interim results for the six months to end-September on Thursday.
The clothing retailer has not issued a trading statement, indicating its earnings will be within 20% of the matching period’s.
At its annual general meeting on September 6, CEO Doug Murray said
TFG’s total sales growth for the first five months of its financial year
was 17.2% including its international division comprising Phase Eight
and Whistles.
"Turnover excluding our international division grew by 9.5% over the previous period with same store
sales growth of 3.5%. Cash sales growth remains strong at 19.5%.
Credit sales growth at 1.5% has been severely impacted by the reduction
in new accounts as a result of the affordability regulations and we
estimate the loss to creditworthy turnover to be approximately R300m for
this period," Murray said.
Sappi is scheduled to release its September quarter results on Thursday. This is the final quarter of its financial year.
Private hospital group Mediclinic said in a trading statement on
September 27 it expected to report its interim results for the six
months to end-September on Thursday.
The trading update did not include a range of earnings, but said its
South African operations had a revenue of R6bn during the first five
months of its financial year. Margins were reduced by higher
pharmaceuticals costs.
Statistics SA is scheduled to release September’s mining production figures at 11:30am and manufacturing at 1pm.
Investec Bank economist Kamilla Kaplan forecast mining production to
increase 3.8% from September 2015 and manufacturing to have declined
0.1% from the previous year.
"Mining production fell by 6.9% in the year to date to August, with
the underperformance impacted by a multitude of factors ... [including]
increased operating costs, weaker commodity demand from China and low
commodity prices," Kaplan wrote in her weekly economics note.
Purchasing managers index polls sponsored by Barclays and Standard
Bank have foreshadowed a fall in September’s manufacturing production.
"Rand weakness since 2011 has not provided the stimulus to
manufacturing that many may have hoped for," Stats SA noted in August’s
report.
No comments:
Post a Comment