Market Overview

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

We see a further decline in the commodity market today, following headlines of strikes and counter-strikes between the U.S. and Iran, which further raise tensions. With most of the metal space in the red, we expect diversified miners to struggle today, with gold and the PGMs (Platinum Group Metals) in particular struggling to grow. We expect pressure to be the name of the game today, with more movement in the afternoon, with Core PCE and GDP data coming from the U.S. at 14:30, and the Reserve Bank releasing its interest rate decision at 15:00.

Tencent (700)

Tencent’s struggle continues as it drops to the HK$420 range, with a further drop to HK$400 looking increasingly possible. This will put pressure on Naspers (NPN) and Prosus (PRX), despite their decent performance, as they are major shareholders.

Local Stocks

Telkom (TKG)

Telkom has earnings scheduled on Tuesday next week (2nd June), and following yesterday’s trading statement, we speculate that R67 is the next level to look out for, with R70 right after it.

Sappi (SAP)

Sappi signed a definitive agreement with UPM (UPM), securing a joint venture which has been in the works for some time now. This could make the company grow, and we wouldn’t recommend any shorts for the time being.

Life Healthcare (LHC)

Life Healthcare came out with disappointing numbers on its earnings, and despite the slight recovery it saw due to Netcare’s (NTC) earnings, we see further drops in the cards.

Earnings & Economic Data

Pre-Market Earnings

Xpeng (XPEV)

Xpeng is a Chinese electric vehicle manufacturer, with operations in both Europe and North America.

After-Market Earnings

Dell Technologies (DELL)

Dell is an American hardware and tech company, known best for manufacturing personal computers and related accessories, such as printers.

Costco (COST)

Costco is a U.S. based grocery and retail multinational, and one of the world’s largest in the field.

Economic Data

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