Last week saw a slightly different pattern emerge within the top mover rankings. The decliners list found itself populated by high momentum, market darling industrial counters of last year such as Aspen Pharmacare and Naspers, while the gainers lists saw the return of a few resource counters in what looks to have been a short-term, speculative rebound.
British American Tobacco Plc led the way (in terms of share price gains) after results for the six-month period ending June 30, showed group revenue to have increased by 2.4% (at constant rates of exchange), basic earnings per share were 52.6% higher at 142.4p (2014: 93.3p), having benefitted from gains which followed the acquisition of Lorillard by the group’s associate, Reynolds American Inc. However, the reported revenue at current exchange rates was 5.9% lower than the comparative period, due to adverse exchange rate movements.
Reinet Investments echoed similar gains to that of British American Tobacco Plc, as the company makes up the primary asset in Reinet’s investment portfolio.
Brait Se continues to defy gravity as it remains in the top gainers list once again, as it has every week since being incorporated into the JSE Top 40 index.
Kumba Iron Ore has started to rebound from the depths of its multi-year lows following a rebound in iron ore as rumours surface in China that steel makers have been ordered to cut production.
The top decliners list sees a week where industrial counters have come under pressure.
The MTN Group saw a sharp selloff in its share price, following the release of a trading statement, in which the company guided that it expects headline earnings per share for the interim period to be 10% to 15% lower than the comparative six-month period in 2014. The decline in earnings follows a weaker Naira in Nigeria, MTN’s largest market.
Naspers continues to react to market volatility in Asia, falling in sympathy with its Hang Seng listed counterpart Tencent holdings.
The new week
At home a quiet economic calendar will perhaps be overshadowed by the corporate calendar where blue chip companies Nedbank, MTN, Old Mutual and Liberty are scheduled to release interim results.
Non-farm employment change data out of the US (on Friday) will once again be the dominant economic data point scheduled for the new week, preceded by US trade balance data on Wednesday, and ISM Manufacturing PMI data on Monday.