Morning Gossip - Rand Surges Below R/$ 13.00

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World News

A lack of any significant risk events saw the reflation trade momentum dissipate yesterday. Wall Street closed mostly flat while a decline in the mining sector pushed UK markets lower. Data from the US showed a softer than expected rise in first time jobless claim applications, indicating that the labour market remains strong. Building permits and housing starts surpassed estimates despite expectations of future rate hikes.

 

South African News

The Rand has broken the R/$13 level and for the umpteenth time that strong momentum seems to have slowed down, yet every time the currency makes up more ground. SA markets closed higher yesterday, driven by industrials while general retailers and resources capped gains. There are not any significant risk events to take note of going into the weekend and a lot of talk regarding the budget speech on 22 February will grab market attention this coming week.

 

Company News

MURRAY AND ROBERTS HOLDINGS LIMITED

Yesterday was somewhat of a crazy day for the Murray and Roberts [MUR] share price. The group announced lacklustre results on Wednesday for the 6th month period ending 31 Dec 16. Basic EPS is expected to be down in the -65 to -75 % range and initially there wasn’t much movement in the share price as the results were largely expected. However, yesterday saw a buying frenzy with almost 96 million shares traded (1.74m were traded when statement announcement). It seems that it is one buyer that has been purchasing the shares and one would guess it is either Allan Gray or PIC, who are the current largest shareholders, who may be looking to ramp up their stake. One would further expect some sort of corporate action soon, but for the risk averse trader, the short term might be a great short opportunity.

 

The Day Ahead

The only notable data release today is the US leading indicator, and excitement is likely to be lacking going into the weekend.

 

Key Results Out Today

US Leading indicator

 

Quote of the day

“I would like to die on Mars. Just not on impact.”

-          Elon Musk