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Johannesburg - Equity markets opened the day mixed as the Nikkei and Shanghai stock exchanges drifted lower on the day. However, the Hang Seng and the Asx200 were firmer in line with the positive move in the US markets overnight.
The JSE was quick out of the starting blocks as the local bourse began to make ground to catch up with world markets.
What a week this has been on the local bourse! Steinhoff [JSE:SNH], continues to make headlines for all the wrong reasons. On Friday afternoon reports indicated that Christo Wiese's investment vehicle Titan Group Limited has instituted a R59bn claim against SNH.
This saw the share price tumbling 11% to trade below R2 per share, with the embattled retailer closing the day 11.31% lower at 196c.
Disappointing news out of Consol on Wednesday showed that the multi-purpose glass maker had shelved plans to relist on the JSE after a 9-year hiatus.
Consol management cited unfavourable market conditions as the main reason for pulling out from the listing, but there could be more than what meets the eye in this case.
Market participants have highlighted shareholder leverage, mispricing of the share and existing shareholders' unwillingness to sell a bigger stake in the business.
Inflation from the factory gate in South Africa increased by 3.7% down from 4.2%. This decline in producer price inflation (PPI) was better than the market forecast of 4%. It indicated that prices from the factory gate are increasing at a slower-than-expected pace, which would be positive for the struggling consumer market in South Africa.
In corporate news, apparel retailer Mr Price [JSE:MRP], indicated it has had a good 6 months after it revealed to the market that its basic earnings per share would increase by 20% to 24%.
The Durban-based retailer has been making a steady recovery after having recorded back-to-back earnings that missed market expectations. The retailer appears to have turned the corner, despite increased competition from international participants and online alternatives.
The gainers on the day were Hospitality Property Fund [JSE:HPB], which gained 7.6% today to trade at 1175c. Strong gains were also recorded in Capital and Regional [JSE:CRP], Texton Property Fund [JSE:TEX], and PSG Konsult [JSE:KST], up 7.02%, 5.12% and 4.97% respectively.
The major losers on the day were Steinhoff [JSE:SNH], Net1 [JSE:NT1], Tongaat Hulett [JSE:TON], and Liberty Two degrees [JSE:L2D].
SNH slid 11.31% to trade at 196c as the retailer came under pressure after the litigation announcement by Titan group. NT1, TON and L2D were 8.94%, 5.95% and 5.41% respectively lower on the day.
The JSE Top-40 Index was firmer on the day to trade at 50 684 points, gaining 0.89% from its close yesterday. The broader JSE All-Share Index was up 0.82% to trade at 57 453 points.
The Resource20 Index was weaker up 0.4%, while the Industrial Index was up 0.9% as the Financial Index eased 1.28%.
The rand was flat on the day and was trading at R12.43/$ at 17:00 CAT. South African 10-year bond (R186) yields were softer today and were bid at 8.21%, down from 8.30% yesterday. US 10year treasury yields traded below the 3% mark today. as inflation fears eased on Thursday.
Brent crude was firmer on the day and was trading at $73.69 per barrel at 17:00 CAT, off its intraday highs of $74.15/barrel.
