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All eyes will be on one of the JSE's biggest stocks on Friday - Anglo American - as the release of the mining giant's annual results will determine whether it has been hit by the depressed global environment. A global economic recession has taken commodity prices as its victim, in turn, hurting mining houses.
On Fin24.com's AM Stock Take, presenter Chris Gibbons spoke to David Shapiro, a market commentator from Sasfin, about what investors could see from the results. "It's a mixed picture, it's not easy to really determine where the results are going to be like many other companies that we are seeing at the moment," says Shapiro.
"The big question is where does Anglo go from here?" Have they got money to continue to expand operations or will they join other companies by coming to the market for cash? Most commodity companies have been after cash conservation and that might just underpin the results today."
Other results expected to be released today include diamond giant De Beers, which could also indicate what impact the liquidity crisis has had on its sales and operations.
Gibbons and Shapiro also spoke about SA Finance Minister Trevor Manuels comments to MP's in parliament that the global economic downturn could last longer than many think, and they discuss the components of a defensive portfolio.
Trade on the JSE today is expected to be dampened by world markets. Overnight, Asian markets were down on concerns that the global recession is damaging corporate profits, which is causing bad debts to creep up. Gibbons says this was also reflected in Wall Street. |
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