Consolidation

After releasing positive results Standard Bank dropped 2.90% and the rest of the banks (FirstRand -2.67%, Nedbank -1.46%, RMB Holdings -3.31% and Investec -2.25%) following suite.

The Efficient Group report that Alexander Forbes managed a gain of 1.47% with AECI exploding by 1.34%. The weaker currency could not halt the slide in the rand hedge stocks, as BHP Billiton (-2.06%) and Anglo American (-1.20%) traded lower. The dollar strengthened against the euro leaving commodities weaker. Gold shed 1.33%, platinum holding the slide by remaining almost unchanged while oil dropped 3.52%.

The US stocks were supported by the weaker oil price as this bodes well for the global economy. Brilliant results released by Hewlett Packard (13.17%) provided further impetus. Not even the strong performance of TDC (15.00%), a Danish telecom company, could prevent the European stock markets to slip lower.

The Far East is once again mixed with the Nikkei rising in response to the lower oil price raising the outlook for the US economy, while the Hang Seng is trading lower as profit taking is the name of the game. Trading on the domestic markets is expected to be flat today after the declines recorded the previous two days.