IG Markets: Midday market update, 18 February

The JSE all-share index is trading 0.15% higher in morning trade led by financial counters, while resources are softer amidst further declines in commodity prices.

The resource index is 0.1% lower, the financial index 0.35% higher and the industrial index has added 0.14%.

In company news Sasol announced a change to its dividend policy which has seen a significant sell-off in the company’s share price today.

The negative impact of the sudden oil decline has resulted in the reassessment of the progressive dividend policy to a revised cover range policy similar to the dividend cover rates during the years 2008 to 2014.

The Rand is trading at R11.69 to the Dollar, R13.33 to the Euro and R17.96 to the British Pound. In commodities Gold is trading at $1,209/oz., Platinum at $1,172.4/oz. and Brent Crude will cost you $61.87 a barrel.

The headline CPI (for all urban areas) in South Africa showed an annualised inflation rate in January 2015 of 4.4%. In the U.S. we are expecting building permit and producer price index data out at 3:30pm.

Chart of the day

The Emira Property Fund released interim results in which the company declared 9% growth in distributions, 13% distributable income growth and net asset value growth of 14%. The share is also the chart of the day. The price of the company has retraced from overbought levels back to trend-line support at 1800.

The move is the first pullback from the recent high and the share now trades in oversold territory. A move back to recent high territory is favoured at 1940, while a continued decline to below 1710would consider the failure of the bullish considerations.

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