SAB Miller offer lifts JSE

Local markets

The JSE traded 0.25% stronger to start the week on Monday following news that the second largest brewer and JSE-listed company SAB Miller (SAB) made an offer to Heineken after the world’s largest brewer, Anheuser-Busch InBev, made a takeover offer of the company. Heineken refused the offer, making SAB Miller more vulnerable to an unwanted takeover offer.

The rand is due to remain under pressure in anticipation of the release of local inflation data and a rates decision later in the week. The randedged up against the US dollar by 5pm SA time, swapping hands at R10.99.

Brent crude lost 1.06% over the course of the day following the release over the weekend of Chinese data that points to slower national economic growth, which in turn threatens demand for the commodity.

International markets

In Asia, Japanese markets were closed for a public holiday, while China’s Shanghai was up 0.31%, and Hong Kong’s Hang Seng fell 0.82%. Chinese industrial output numbers were released over the weekend and showed a slower than expected increase.

European markets moved slowly on Monday following disappointing Chinese data that was offset by increased merger and acquisition activity. The German DAX added 0.05%, the French CAC40 shed 0.41% and the English FTSE slid 0.12%, while UK investors remain cautious as the Scottish independence referendum is due on Thursday.

American markets fluctuated on Monday morning following the release of the Chinese data and the assessment of its impact on Federal Reserve Bank decisions, which was being compensated for by Apple’s rising share price after impressive pre- orders of its iPhone 6 devices. The Dow Jones edged 0.02% up, the S&P 500 dropped 0.17% higher and the Nasdaq slumped 0.9%.

Share price news

Monday saw SAB Miller (SAB) grow by 9.66% to trade at R668.91 a share after 13,372 deals saw 5,440,934 shares trade hands. Another counter trading above R1 a share was Drdgold Ltd (DRD) which investors traded 1,103,843 shares from 350 deals that saw it gain 10.04% to settle at R2.85 a share.

On the other hand, Woolworths Holdings Ltd Npl (WHLN) was amongst the shares above R1 to fall the most over the trading day when investors bought and sold 4,595,547 shares in 3,909 deals that led to a closing share price of R12.20, a fall of 12.23%. After investors traded 2,872,501 shares in 3,385 deals, Telkom SA (TKG) slid 4.98% to R58.25 a share. The company announced the appointment of executive director and chief financial officer.