Life insurer Old Mutual Plc's half-year results and an interest rate-setting meeting in the United States will be the key focus of the South African stock market this week, traders and fund managers said.
Old Mutual is expected to post a modest rise in underlying first-half profit as it struggles with its Nedcor banking unit and weak growth in domestic new business, analysts said.
Earnings of Old Mutual, which has its primary listing in London, will be flattered in sterling terms when it reports on Tuesday, reflecting the strength of the rand, they added. Adjusted operating earnings per share were expected to rise 14 percent to 6.4 pence for the six months to end-June, according to the average estimate of nine analysts polled by Reuters.
Rival insurer Liberty Group, 30 percent owned by Standard Bank, reports half-year results on Wednesday.
In late June, Liberty said in a trading statement that interim headline earnings would be 10 to 30 percent higher than for the same period last year. Midcap gold miner Durban Roodepoort Deep is expected to report a 37 percent fall in cash operating profit to 82.8 million rand ($13.23 million) for its fourth quarter when it reports on Tuesday, according to the average forecast of four analysts polled by Reuters.
Traders said the market will also be driven by the US central bank's decision on interest rates on Tuesday and the subsequent impact on the dollar.
"We anticipate a 25 basis-point hike and that would be dollar-positive and could have a negative impact on the rand," said Kevin Brady, head of trading at Investec Securities.
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