Market Overview

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

We open the day to copper and silver in the green once again, while gold holds steady. The PGMs (Platinum Group Metals) seem to be the only losers in the metals space, as they continue to decline. Tencent (700) also starts the day, a hair below 0.6% in the green, which, while not very significant compared to its losses yesterday, should be enough to ease some of the pressure on Naspers (NPN) and Prosus (PRX). All in all, risk seems to be on the table today, as the Rand starts stronger and markets open greener.

Oil

The price of oil saw several dramatic shifts yesterday in response to conflicting headlines that emerged throughout the day. It appears that news from the Middle East is becoming increasingly unreliable, and if you’re investing in oil, we recommend being ready and quick to react to such turns. The saying “don’t marry a trade” is particularly relevant here, as only the words of President Trump and his Iranian counterpart seem to be reliable.

Local Stocks

Pick N Pay (PIK)

Pick N Pay released an after-hours trading statement yesterday, and the company is trading well into its earnings, scheduled for Monday (May 25th). It could see some profit-taking today or ramp up further before earnings.

Boxer (BOX)

Boxer saw a drop from around 84 Rand to slightly above R82. It also saw an upgrade from Standard Bank yesterday, so we recommend keeping an eye on it for today.

Netcare (NTC)

Life Healthcare (LHC) released a weak trading update yesterday, creating a golden opportunity for its competitor, Netcare, to drop a trading update of its own, which secured it a very sizable win.

British American Tobacco (BTI)

British American didn’t trade too well yesterday, but it’s seen as a reliable hedge for risk-on days, and it’s worth watching if that’s what you’re looking for.

Economic Data

Start your trading journey with us today!

We’re posting on TradingView, we’re posting on our blog… but the real magic happens in our client community where you can get access to our ideas as they develop. So, open your account and join us and start taking advantage of South Africa’s Top Broker for both Active Traders and Traditional Investors. We have a Discord server, with a Daily Morning Call at 08:30 (Monday – Friday), where our Trading Strategist shares market updates and posts information with the Community. If you are not trading with us yet, what’s stopping you?

*Please note that these trade ideas form part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources.