Unum Market Commentary: Global Equities Firm As Dollar Weakens
On Friday, the South African equity market continued to tick higher, buoyed by a general risk-on sentiment as well as a weaker US Dollar and lower US Bond Yields. On the day, the All Share Index added 1.02% while the Top 40 Index was higher by 1.17% lead by Pepkor, Glencore and Naspers while South 32, Standard Bank and South 32 weighed on the index.
In Europe, equity markets were higher with the EuroStoxx50 index adding 0.29%, lead by CRH and Nokia that added 1.86% and 1.37% respectively. In the US, markets ended the week on a high note with the the Dow Jones, S&P500 and Nasdaq adding 0.52%, 0.62% and 0.86% respectively. This morning equity markets in Asia are on the front foot, with the Nikkei, Hang Seng and Shanghai Composite higher by 0.85%, 2.17% and 1.43% respectively (6:25am).
JSE Major Sectors
Resources 10 +0.98%
Industrial 25 +1.41%
Financial 15 +0.52%
Join the Unum Trading Desk on Friday 7 Sep 2018 starting at 14:15 as we look to trade the EURUSD Forex pair on the NFP data. t.me/NFP7SEP2018
In currencies, the South African Rand trades as follows:
USDZAR +0.04% to 14.26
GBPZAR +0.09% to 18.33
EURZAR +0.10% to 16.58
Gold trades at $1212
Platinum at $791
Brent Crude Oil at $76.09
International Markets
This morning, Asian equities are as follows:
Nikkei 225 (+0.85%)
Hang Seng (+2.17%)
Shanghai Composite (+1.43%)
Latam Markets closed as follows:
Merval 25 (-5.11%)
Bovespa (+0.83%)
INMEX (-0.22%)
Company News
MMI Holdings - Trading statement for the year ended 30 June 2018
Shareholders are reminded that MMI executive management has introduced a number of recent changes to the organisation in order to focus on the practical implementation of our strategy. We have reset the business to provide a strong foundation for improved performance and future growth. We are confident that these changes will create value for shareholders in due course.
Shareholders are advised that the diluted core headline earnings per share, the group's main earnings measure to monitor the operational performance of the group, is expected to decrease by between 5 and 15 percent relative to the previous year.
The diluted core headline earnings expectation equates to a range from 170cps to 190cps for F2018, compared to 200cps in F2017. Diluted core headline earnings has been negatively affected during the period by various factors including increased investment in client engagement activities, higher expenditure in technology, and weaker persistency in Metropolitan Retail. Also, MMI’s share of losses increased, in line with business plans, on new initiatives such as the India joint venture. Momentum Corporate profits have improved with group underwriting results showing an improvement year-on- year, whilst good expense management also contributed to their improved result. Strong mortality and morbidity profits across the group boosted core earnings.
Shareholders are further advised that the group's basic earnings per share is expected to decrease by between 5 and 15 percent (to between 84cps and 94cps) relative to 98cps earned in the comparative period. Headline earnings per share is expected to show a decrease of between 15 and 25 percent (to between 89cps and 101cps) relative to 118cps for the comparative period. Basic and headline earnings have both been negatively affected by significant basis changes in Momentum Retail and Metropolitan Retail and the weak investment markets of F2017 resulting in a lower starting asset base for the current year.
Basic earnings decreased by less than headline earnings mainly due to a reduction in the impairment of intangibles compared to F2017.
Note that MMI excludes fair value gains, impairment of intangibles, movement in value of MMI shares held in policyholder funds, investment variances and non-recurring items from core headline earnings whereas basic earnings include all these items.
MMI will be releasing final results for the year ended 30 June 2018 on 5 September 2018. The forecast financial information contained in this trading statement to shareholders is based on information available at the time of publication and has not been reviewed and reported on by the Company’s auditors.
Aus miners:
BHP Billiton (+1.31%)
Rio Tinto (+0.98%)
S32 (+0.59%)
FANGs
Facebook (+1.01%)
Amazon (+0.13%)
Netflix (+5.79%)
Google (+1.28%)
FTSE Miners:
Anglo American plc (+2.54%)
BHP Billiton plc (+2.17%)
Glencore plc (+3.30%)
Alibaba Holdings (+1.16%)
Tencent Holdings (+1.36%)
Please feel free to contact the Unum Trading Desk for any assistance or trading related queries.
Unum Trading Desk : 011 384 2929
In Europe, equity markets were higher with the EuroStoxx50 index adding 0.29%, lead by CRH and Nokia that added 1.86% and 1.37% respectively. In the US, markets ended the week on a high note with the the Dow Jones, S&P500 and Nasdaq adding 0.52%, 0.62% and 0.86% respectively. This morning equity markets in Asia are on the front foot, with the Nikkei, Hang Seng and Shanghai Composite higher by 0.85%, 2.17% and 1.43% respectively (6:25am).
JSE Major Sectors
Resources 10 +0.98%
Industrial 25 +1.41%
Financial 15 +0.52%
Join the Unum Trading Desk on Friday 7 Sep 2018 starting at 14:15 as we look to trade the EURUSD Forex pair on the NFP data. t.me/NFP7SEP2018
In currencies, the South African Rand trades as follows:
USDZAR +0.04% to 14.26
GBPZAR +0.09% to 18.33
EURZAR +0.10% to 16.58
Gold trades at $1212
Platinum at $791
Brent Crude Oil at $76.09
International Markets
This morning, Asian equities are as follows:
Nikkei 225 (+0.85%)
Hang Seng (+2.17%)
Shanghai Composite (+1.43%)
Latam Markets closed as follows:
Merval 25 (-5.11%)
Bovespa (+0.83%)
INMEX (-0.22%)
Company News
MMI Holdings - Trading statement for the year ended 30 June 2018
Shareholders are reminded that MMI executive management has introduced a number of recent changes to the organisation in order to focus on the practical implementation of our strategy. We have reset the business to provide a strong foundation for improved performance and future growth. We are confident that these changes will create value for shareholders in due course.
Shareholders are advised that the diluted core headline earnings per share, the group's main earnings measure to monitor the operational performance of the group, is expected to decrease by between 5 and 15 percent relative to the previous year.
The diluted core headline earnings expectation equates to a range from 170cps to 190cps for F2018, compared to 200cps in F2017. Diluted core headline earnings has been negatively affected during the period by various factors including increased investment in client engagement activities, higher expenditure in technology, and weaker persistency in Metropolitan Retail. Also, MMI’s share of losses increased, in line with business plans, on new initiatives such as the India joint venture. Momentum Corporate profits have improved with group underwriting results showing an improvement year-on- year, whilst good expense management also contributed to their improved result. Strong mortality and morbidity profits across the group boosted core earnings.
Shareholders are further advised that the group's basic earnings per share is expected to decrease by between 5 and 15 percent (to between 84cps and 94cps) relative to 98cps earned in the comparative period. Headline earnings per share is expected to show a decrease of between 15 and 25 percent (to between 89cps and 101cps) relative to 118cps for the comparative period. Basic and headline earnings have both been negatively affected by significant basis changes in Momentum Retail and Metropolitan Retail and the weak investment markets of F2017 resulting in a lower starting asset base for the current year.
Basic earnings decreased by less than headline earnings mainly due to a reduction in the impairment of intangibles compared to F2017.
Note that MMI excludes fair value gains, impairment of intangibles, movement in value of MMI shares held in policyholder funds, investment variances and non-recurring items from core headline earnings whereas basic earnings include all these items.
MMI will be releasing final results for the year ended 30 June 2018 on 5 September 2018. The forecast financial information contained in this trading statement to shareholders is based on information available at the time of publication and has not been reviewed and reported on by the Company’s auditors.
Aus miners:
BHP Billiton (+1.31%)
Rio Tinto (+0.98%)
S32 (+0.59%)
FANGs
Facebook (+1.01%)
Amazon (+0.13%)
Netflix (+5.79%)
Google (+1.28%)
FTSE Miners:
Anglo American plc (+2.54%)
BHP Billiton plc (+2.17%)
Glencore plc (+3.30%)
Alibaba Holdings (+1.16%)
Tencent Holdings (+1.36%)
Please feel free to contact the Unum Trading Desk for any assistance or trading related queries.
Unum Trading Desk : 011 384 2929