A 20% surge in Netflix’s stock price after the internet-based movie distributor reported it reached nearly 87-million subscribers set an upbeat tone for stock markets trading ahead of the JSE on Tuesday morning.
Netflix said many of its new customers are outside of the US. Already over 39-million of its customers are outside of its domestic market, and it forecast 3.75-million of the 5.2-million new subscribers it expects to add in the quarter underway will be from outside the US.
Judging from Sydney whose S&P/ASX 200 index was up 0.39% and Hong Kong where the Hang Seng index gained 0.88%, the JSE will rebound from Monday’s 0.74% drop in its all share index.
The rand was 0.36% stronger at R14.09/$ as Monday’s confidence of a US interest rate increase this year waned. Trading Economics reported the NY Empire State Manufacturing Index fell to -6.8 points in October of 2016 from -1.99 in September and much worse than market expectations of 1. It was the lowest reading in five months.
Pick n Pay Stores said in a trading update on October 7 it expected to report on Tuesday its interim headline earnings per share for the 26 weeks ended August 28 grew by up to 25%.
"The group’s long-term strategy — built on a combination of greater operating efficiency, sales growth and margin improvement — remains on track," the grocery chain said in its results statement.
Pick n Pay’s turnover grew 7.2%, or 7.5% in constant currency, reflecting a tougher trading environment and some internal disruption from store refurbishments. Two-year compound turnover growth — which smoothes the impact of disruption — is close to 8%, the trading statement said.
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