Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Friday’s session in the U.S. saw further drops for the semiconductors, while the software sector took a driving role in the market. We also saw a series of strikes between the U.S. and Iran over the weekend, which have had a relatively minimal effect on oil prices, with the market seeming to focus less on headlines and more on concrete data, such as oil flows or the number of ships still in transit. Going into the day, we see a mix of reds and greens in the commodities, but our market is up by a hair short of 70 basis points, which could translate to a risk-on start to the session.
Microsoft (MSFT)
As previously mentioned, the software sector was the centre of attention in the U.S., with a mix of rotations and bottom buying bringing considerable gains. Microsoft, in particular, stood head and shoulders above the rest, with a huge trade volume (at around 186 million) and gains. It’s on our watchlist, as it’s currently resting at $372 and could see further growth if it breaks the $380 mark. As for the lower range, we’ve set it at Thursday’s lows, which is roughly around $349. It’s important, however, to note that this is still a slightly risky idea, and we recommend that you research it yourself and don’t take any risks if it starts dropping again.
Local Stocks
Sanlam (SLM)
Sanlam was raised to overweight by Morgan Stanley today, with a target price of R144, which is a 24% increase from Friday’s close at R86.
BHP Group (BHP)
BHP had a good day in Australia, which should also lead to it having a good day in South Africa. It might also help bring some risk back to diversified miners as a whole, so you might want to keep an eye out.
Naspers (NPN) & Prosus (PRX)
Naspers and Prosus had decent earnings reports today, with Naspers in particular beating expectations on nearly all fronts. Tencent (700) also had a decent performance on the market today, with it reaching 3% growth at one point, which should translate to a good day for Naspers and Prosus.
From left to right: Naspers (NPN), Prosus (PRX), and Tencent (700).
Economic Data
Start your trading journey with us today!
We’re posting on TradingView, we’re posting on our blog… but the real magic happens in our client community where you can get access to our ideas as they develop. So, open your account and join us and start taking advantage of South Africa’s Top Broker for both Active Traders and Traditional Investors. We have a Discord server, with a Daily Morning Call at 08:30 (Monday – Friday), where our Trading Strategist shares market updates and posts information with the Community. If you are not trading with us yet, what’s stopping you?
*Please note that these trade ideas form part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources.
