Markets Overnight:
Well if you didn’t have the ‘pleasure’ seeing the repeats on all the television stations worldwide, all day long, Muhammad Gaddafi was purged from Libyan concern as NTC found and killed him in his home town. What does this mean for us here in South Africa? Possibly a fraction less for petrol, the country produces close to 1 million barrels a day and will hopefully continue their supply going forward.
US markets lead another classic choppy session, but experienced a small rally later in the afternoon after a number of companies posted better than expected earnings, Microsoft earnings hitting their expectations on the head. Further, the Philly Manufacturing Index gave a major surprise on the upside, but other data kept the reaction subdued as Existing Home Sales (a key indicator for the US economic health) was worse than expected, alongside the initial jobless claims (an important count as it shows the new number of people applying for jobless claims from government).
New news! But don’t to surprised, there is now speculation that the EU meeting expected to sort out the EU concerns this Sunday has now been postponed. Yup, you heard it, postponed. Now they are planning to use the meeting on Sunday to put into place plans they will vote on next week 26 October. Three days, that’s nothing! Right!? One thing we’ve learnt is that uncertainty can go a long way in three days!
This extension of the summit, and thus a second meeting comes from the disagreements between France and Germany. Why are they disagreeing though? France has more to lose than Germany in the event they accept Germany’s plans, more specifically, their AAA credit rating!
South Africa:
The SAVI (South African Volatility Index) – our fear index, nudged over the 30 mark yesterday to 30.48, over the continuing concern of Europe. The World Bank report based on the ease of doing business within a country was released yesterday, with South Africa moving up one place to 35, out of the 183 countries surveyed.
Company News:
Clicks [CLS] reported an 18.1% increase in diluted headline earnings per share for the year to August 2011. Famous Brands [FBR] reported their six month earnings to August 2011 at 120 cents per share, up from 112 cents per share the year before. Anglo American [AGL] reported a 9% drop in copper output, while Anglo American Platinum [AMS] reported a 13% increase in quarterly output alongside Kumba Iron Ore’s [KIO] 2% increase in overall output for the same period.
Today:
On the data front, you can take it easy as both the US and local markets remain mime today. The only real data could be France and Germany’s Business Confidence and Business Climate Indicator respectfully.
On our shores though, there are a number of stocks going LDT (Last Day to Trade) – i.e. last day to buy the stock and receive the dividend. Worthwhile stocks are Optimum Coal Holdings (30c), Steinhoff International Preference share (335c) and Netcare Preference share (338.42c).
