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Morning Market Scoop 18 October 2018

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Barry Dumas
Moring-market-scoop

 

Mediclinic share price drop and FED meeting minutes

Mediclinic is expecting around 10 pence per share from the previous 11.3 pence per share from the previous period. The Federal Open Market Committee (FOMC) released their meeting minutes on Wednesday evening, could we see the Rand weaken against the Dollar?

I'm Barry "The Beef Dumas" and this is your morning market scoop!

Dedicating this mornings Throwback Thursday track to the Rand:

 

 

mediclinic-share-price-drops-17

 

Taking a dive?

What’s the scoop? Mediclinic Share Price

Mediclinic international PLC brought out a trading statement on Wednesday which indicated that it’s share holder could expect lower profits than expected.

  • The share price of Mediclinic tumbled over 17% after the interim trade update was issued the share was trading at R73 around midday.

The big picture Mediclinic is expecting around 10 pence per share from the previous 11.3 pence per share from the previous period. Switzerland operations are still coping with regulatory changes in the inpatient environment which had a greater impact than expected. It is reported that in South Africa the weakness in the second quarter came from fewer cases of bronchitis and pneumonia.

What does all this mean for me?

  • Mediclinic’s middle east operations are growing at a steady rate as well as the South African operations performing in line with guidance. The group is currently also looking to acquire Intercare, which has four-day clinics, three rehabilitation facilities.

FED-release-minutes-on-Wednesday-evening

 

FED not Fred!

What’s the scoop? FOMC Meeting Minutes

The Federal Open Market Committee (FOMC) released their meeting minutes on Wednesday evening. The minutes offered some interesting insights to the stance of the committee on its monetary policy moving forward.

  • The committee seems to be in an agreement on the current gradual path of rate increases and signalled their intention to hike again before the year end.

The big picture an increase in the U.S. interest rate might have a positive effect on the U.S Dollar. Dollar strength will put pressure on Emerging Markets, so we can expect the Rand (ZAR) to depreciate if the Dollar (USD) starts to strengthen.

What does all this mean for me?

  • If the rand starts to come under pressure, then we can expect an overall price increase in retail goods and services (Financial) filtering through to the S.A consumer.

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