Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Yesterday, the U.S. market moved down slightly, as SpaceX (SPCX) remains at the centre of attention, with a combination of hype and forced buying making it harder for other sectors to see growth for the time being. We also see oil continue its downward movement as the war in the Middle East seemingly nears a conclusion, coinciding with J.P. Morgan’s downgrade of Sasol (SOL) to neutral.
SpaceX (SPCX)
As mentioned previously, SpaceX is the talk of the town since it listed on Friday, with it jumping to $225 at one point before ending the session flat. It’s important to note that the stock’s growth is in part due to forced buyings, which has more or less crushed any shorts, and its earnings set for August this year will be very interesting, as it will show the company’s performance, and allow the IPO (Initial Public Offering) buyers will be able to sell.
Semiconductors & Softwares
We saw the U.S. tech sector drop by 2% yesterday, with semiconductors going into the red by around 6%. This stands out as it was not the result of any particular event or headlines. We also saw software going down by 1.4%, which rules out rotation, and it warrants keeping an eye on for the next few sessions, to see if it’s just a round of profit taking and buying into SpaceX (SPCX), or if it is the flows that should be expected in the foreseeable future.
Left: Philadelphia Semiconductor Index (SOX), right: iShares Expanded Tech-Software Sector ETF (IGV)
Local Stocks
Platinum Group Metals (PGMs)
The PGMs had a great day on Monday, with miners like Valterra (VAL) breaking through levels or just having solid performances. We expect today to be a profit-taking day, as it’s usually unlikely that such jumps continue on the second day.
From left to right: Sibanye Stillwater (SSW), Impala Platinum Holdings (IMP), and Valterra Platinum (VAL).
Shoprite Holdings (SHP)
Shoprite traded very poorly on Monday, compared to the rest of the market. We intend to keep an eye on it, as we speculate that the selling could continue into tomorrow’s session.
Earnings & Economic Data
Today’s another quiet day on the earnings front, but plenty eventful elsewhere. We have CPI and Core CPI reports scheduled for 10:00 today, and the U.S. will have an interest rate and an anticipated FOMC statement in the evening. Lastly, tomorrow night (Thursday, 18th June) is the set expiration date for the futures contracts, and Friday (19th June) is a public holiday in the U.S., China, and Hong Kong.
Ex-Dividends
The stocks listed below will go ex-div today.
Economic Data
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