Market Overview

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

Today’s opening market stands in sharp contrast to yesterday’s. This is the result of yet another round of escalations, as negotiations once again fail, or simply stall, making oil into a green island in a sea of red, which should be a silver lining if you hold any shares in Sasol (SOL). We expect things to be quiet this morning until the U.S. market opens, but we should see higher volumes today as markets in the U.S., the U.K., Switzerland, and Hong Kong are once again open.

Gold

Gold has dropped by around 0.8% overnight, which should also bring down gold miners. But with the U.S. and others back in the market, the impact should be doubly as pronounced on dual-listed companies, such as Anglogold (ANG) and Harmony Gold (HAR). We recommend keeping an eye on them, as any dual-listed gold miner that opens flat is a prime opportunity for your shorts.

Local Stocks

Mondi (MNP)

Mondi saw an unusual burst of growth yesterday, and despite its upcoming trade update, we don’t expect it to maintain those gains. We recommend short if it opens flat.

Pepkor (PPH)

Pepkor can be watched as an indicator of where the apparel retailers are headed. We’ve set R21.60 as the lower level and R22.40 as the upper level to look out for.

FirstRand (FSR)

FirstRand had a huge jump yesterday, reaching just shy of R94. This came following news of a potential buyer for Aldermore, but the lack of details about the deal may have led FirstRand to give up a significant portion of those gains. Notably, the stock is still trending upwards and could see a catch-up trade during the day.

Datatec (DTC)

Datatec soared last week to around the R86 mark, and with their earnings today, we expect significant profit-taking.

Economic Data

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