Market Overview

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

We start the day with oil down by more than 3%, while much of the metal space is in the green, which should bring some flows back to the South African market. Meanwhile, upcoming U.S. tech IPOs (Initial Public Offerings) like SpaceX, Anthropic, and OpenAI are sparking significant speculation and market shifts, as fund managers scramble for liquid capital to invest in them. This includes capital in emerging markets, including the JSE, and could result in more unusual market actions in the coming weeks. We also see Chinese tech, such as Alibaba (BABA) and Baidu (BIDU), in the green, while Tencent (700) starts with a massive jump of more than 10%.

Tencent (700)

Tencent had a significant jump of more than 10% after an announcement regarding their upcoming A.I. chat agent for WeChat. There have been concerns regarding Tencent’s ability to fund the maintenance of such an A.I. project, but it doesn’t seem to affect the market’s view of Tencent enough to halt its gains. Tencent’s gains will also impact Naspers (NPN) and Prosus (PRX) positively, and we speculate that they will open with at least 5% higher share value, making this a prime opportunity for profit-taking if you have any shares in those companies.

Local Stocks

Telkom (TKG)

Telkom came out with earnings today and performed well, with revenue being its only miss. But the company’s overall performance was decent.

Dual Listed Miners

Miners, and specifically gold miners, have benefited from the green metal space and lower oil prices. This, along with a stronger Rand, makes dual-listed gold miners and diversified miners, such as AngloGold Ashanti (ANG) and Sibanye-Stillwater (SSW), respectively, into the hedging options of the day.

From left to right: AngloGold Ashanti (ANG) and Sibanye-Stillwater (SSW).

Earnings & Economic Data

Today has a few noteworthy earnings in the retail and tech sectors that have shown the ability to move a lot.

Pre-Market Earnings

Dollar General (DG)

Dollar General is an American food retailer that sells name brands, as well as products made by its own privately owned companies, with pre-market earnings today.

Victoria’s Secret (VSCO)

Victoria’s Secret is an American women’s clothing and beauty company, most famous for its lingerie products.

After-Market Earnings

Palo Alto (PANW)

Palo Alto is a tech multinational based in the U.S., specialised in cybersecurity.

Economic Data

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