Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Today’s market opens in the red, with declines across most of the board and significant moves in the American tech sector. Gold seems to be the only outlier in the commodities sector, seeing minor growth, while oil just barely holds steady. Tencent has dropped by another 2.2%, which makes it all the more interesting to see if it’s able to go sideways and maintain some of its gains from Tuesday’s bounce, or if those gains were simply a speed bump on the downward road.
S&P 500 Index
The U.S. market saw some action to the downside yesterday, reaching the lower weekly expectation, where it found support. This is in large part due to the SpaceX IPO (Initial Public Offering), scheduled for next Friday (12th June), with a target market evaluation of $1.7 trillion. As for specific stocks, we’d like to point to Micron Technologies (MU), as it has held up incredibly well, while making new all-time highs.
Softwares
The software sector came down by approximately 4.3%, and we speculate further drops. This is almost expected after the growth the sector has seen since April, and we suspect the lower $90 range on the iShares Expanded Tech-Software Sector ETF (IGV) to be the level to keep an eye on.
Local Stocks
Anglo American plc (AGL)
Anglos saw a dip yesterday, dropping to just shy of R90. We think this is a good time to get out with any shorts you may be holding, as last time the company had a push up, it had two or three days of downwards movement before it regained its losses. The same logic could apply to other dual-listed miners, such as Glencore (GLN) and BHP (BHG).
Investec (INP) & Mondi (MNP)
Mondi’s replacement by Investec in the FTSE100 has been confirmed and is scheduled for two weeks, on Friday, 19th June. This is likely to pull investments out of Mondi and into Investec until the scheduled date.
Left: Investec (INP), right: Mondi (MNP)
Economic Data
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