Market Overview
Today’s opening market is less red as the metal space sees some relief, following a 50-basis-point drop in the Dollar Index (DXY) from its peak on Tuesday. We see copper and iron show decent growth, while gold and the PGMs (Platinum Group Metals) move sideways. Equities, in the meantime, continue to struggle, though certain sectors and individual stocks still have potential for action. Going into the day, we believe it’s still important to keep an eye on the Dollar Index while it remains in the 101. range, but we also recommend looking at memory manufacturing stocks.
Apple (AAPL)
Apple’s stock fell dramatically yesterday, following a price increase on certain Apple products and the subsequent decrease in customer demand. The -roughly- 6.5% drop was attributed to the increased cost of chips and components, and it’s likely to continue in the short term, making it worthwhile to short or hedge against it for now.
Micron Technology (MU)
Micron’s Wednesday earnings have propelled it to a new all-time high yesterday, and perhaps even improved the sentiment towards other stocks in the same sector, as we see stocks like SanDisk (SNDK) also see growth. We recommend keeping an eye on Micron and memory stocks as a whole, as they seem to have a lot of momentum for the time being.
Local Stocks
Sasol (SOL)
Sasol has been dropping since the 12th of this month, and with the oil price continuing to drop, it may seem like a strange time to invest in oil producers. But the war in the Middle East has led to the biggest draw on strategic reserves in history, which makes it likely for the likes of Sasol to bounce, as the world’s nations scramble to refill their strategic reserves.
Tiger Brands (TBS)
Tiger Brands was cut to hold by Investec, with a new target price of R307, which is 4% higher than the previous closing rate.
Economic Data
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