Market Overview

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

Today’s market opens with a risk-on sentiment as oil drops by more than 6%, following news of a possible deal between the U.S. and Iran. We see other commodities rise, with PGMs (Platinum Group Metals) showing potential for growth following last week’s drops. However, it’s worth noting that the markets in the U.S., the U.K., Switzerland, and Hong Kong are closed due to public holidays. Subsequently, we’re likely to see a drop in trade volume, particularly in regards to dual-listed stocks .

Coal

A mining accident in China’s Shanxi has led to a rally in coal prices across Asia. This has already led to an approximate 8% increase in coking coal futures (coal used mainly in steel production) as the accident could impact the broader coal supply chain. This will have varying degrees of impact on coal miners, such as Thungela (TGA) and diversified miners like Glencore (GLN), as well as companies that rely on coal in steel, oil or other productions.

Netcare (NTC) & Life Healthcare (LHC)

Life Healthcare had a drop last Thursday following a poor update, which, for a while, also brought down Netcare. But the latter was able to reverse its fortunes with a trading update of its own. Now it’s likely for the metaphorical tables to turn in more ways than one, as Life Healthcare could make a comeback, with sympathy play from Netcare.

Left: Netcare (NTC), right: Life Healthcare (LHC)

Local Stocks

Pick N Pay (PIK)

Pick n Pay had a great day on Friday, going up to around 24. Rand, but its earnings earlier this morning were slightly disappointing, while the target date for their rescue plan was shifted to 2029. We recommend keeping an eye on it, as we expect some profit taking today.

Telkom (TKG)

Telkom is on our watchlist, as it’s been trending downward as of late. We think that its next trading statement would play a deciding role in whether it’s going to continue its downward trend or make a comeback.

MTN Group (MTN)

MTN is on our watchlist, with the 21.0 Rand as the level to look out for, as it could see further upside if that mark is reached.

Economic Data

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