Market Overview

The following is a partial recap of the market analysis shared during today’s morning Discord call.

Today’s opening market is mostly flat or in the red, with a marginally weaker Rand. We expect yesterday’s earnings from NVIDIA (NVDA) to play a significant role today. As is typical with NVIDIA, the earnings’ effect on its stock tends to show on the day after, and it remains to be seen where it goes from here. Otherwise, we expect a quiet morning, driven by news from the Middle East. And if you’re a day trader, we recommend keeping an eye out for spikes in oil trade volume.

Softwares

The software sector mostly saw sells at the beginning of yesterday’s session, but managed to close the day in the green. Interestingly, we saw both software and semiconductors grow yesterday, which is rather unusual, as they tend to move in opposite directions. As for specific stocks, we recommend keeping an eye on Intuit (INTU). It saw a massive drop following yesterday’s earnings, and it’s currently trading below swing lows. It’s worth putting on the day’s watchlist for whether it sees dip-buying or further drops.

Tencent (700)

Tencent starts the day with a 3.3% drop due to no particular headline, which will likely pressure Naspers (NPN) and Prosus (PRX). It’s worth noting that the latter two have held up surprisingly well, despite Tencent’s performance, but are expected to start the day under pressure regardless.

Local Stocks

Harmony Gold (HAR)

Harmony traded well on both sides of the pond yesterday, and among the gold miners, we see it as the best option. We speculate that reaching the R290. threshold could propel it up to the R300. Mark, where it’s likely to see further levels of growth.

Sappi Ltd (SAP)

Sappi saw a significant drop yesterday, following a 46% downgrade by J.P. Morgan. The company is at an all-time low now, and it’s worth keeping an eye on to see if it makes a comeback.

Economic Data

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