US markets closed mixed yesterday as a recovery in technology sector stocks was offset by weakness in energy. The price of oil fell on higher than expected US stockpiles. Private sector employment in the US climbed in line with estimates. GDP growth in the US economy has been strong, but pfinal figures from Europe shows that the latter has passed the US in the htird quarter and is now a higher growth region. UK markets found some relief from a weaker Pound after there was a breakdown in Brexit talks.
South African News
All sectors declined yesteday, but the market’s large trade lower was mostly as a result of a substantial sell-off in Steinhoff and there was additional pressure from Naspers that also traded lower. Data showed a rise in business confidence, but that didn’t prevent the Rand from weakening slightly.
Sanlam [SLM] released an operational update for the first 10 months of the year and the performance looked strong with headline earnigns rising 22% despite a 2% drop in new business volumes.
Hammerson, a real estate company, has agreed to an all share offer for the issued share capital of Intu Properties, which casued a surge in the latter’s share price.
The Day Ahead
We await gold and mining production figures from October, which could give a sense of the sector’s growth in the first month of the fourth quarter. There is also jobless claims from the US on the data calendar. A potential focus point could be the Energy Indaba hosted by the department of energy. Over 700 delegates will be in attendance and the nuclear energy plans may come up in conversation. Back in the US, the Dollar may come under pressure if negotiations to cut expenditure in order to remain below the debt ceiling are unsuccessful. S&P has issued a warning of potential credit action on the US should rising fiscal debt be left unchecked.
Key Results Out Today
SA Gold and mining production
US Initial jobless claims
Quote of the day
“Stop chasing the money and start chasing the passion.”
- Tony Hsieh
Quantitative Investment Analyst
Ian Stiglingh is a full time quantitative analyst, responsible for research of equities across all industries. Ian completed his degree in Mathematical Science in 2013 and his Honours degree in Financial Risk Management in 2014, both at the University of Stellenbosch. During his studies, Ian worked as an intern at Old Mutual Actuaries & Consultants as well as J.P. Morgan in Johannesburg, and is currently a CFA candidate.