Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Today, we see a wave of movement in commodities, with oil going into the red by 1%, while much of the metal space is in the green. We see similar growth in the U.S. market, with software stocks continuing to rise, while semiconductors were able to turn around the sell-off and nearly close the gap between Friday’s close and Monday’s opening. We expect a similar action for the day, with fund managers buying into semis, as today is both a month-end and a quarter-end.
Tencent (700)
Tencent seems to have found a bottom, at least for the short term, at around HK$410. This should be a relief for anyone holding Naspers (NPN) and Prosus (PRX), and we recommend keeping an eye on Tencent, as it will have to break the HK$440 or HK$450 before it can see proper growth again. It’s worth noting that the Tencent share buyback is still ongoing. Meanwhile, lobbying firms from the U.S. are cutting ties with Chinese companies like Tencent and Alibaba (BABA) following new restrictive laws.
Local Stocks
Naspers (NPN) & Prosus (PRX)
Naspers and Prosus had a nice bounce after earnings yesterday, with Naspers seeing a 5% growth. Considering Tencent’s performance, it most likely was just a minor contributing factor at most, which makes it all the more interesting to see where it goes today. We believe that R840 is the level to look out for, as it has been a significant level of support before, and if it holds without breaking, R860-880 will be on the table. Prosus is in a similar situation, with R710 as the level of support and R750 as the level of resistance to look out for.
Left: Naspers (NPN), right: Prosus (PRX).
AngloGold Ashanti (ANG)
AngloGold traded very well in the U.S., which is strange, as it’s not due to any headlines or increases in gold price. It could be worthwhile to keep an eye on to see whether the sells of yesterday continue or reverse and catch up with the U.S. on our side.
Earnings & Economic Data
China released its manufacturing PMI report earlier today, and beat expectations by a small margin . The Canadian and Hong Kong markets will be closed tomorrow due to public holidays, meaning that stocks like Tencent (700) will not be tradable.
After-Market Earnings
Nike (NKE)
Nike has been performing poorly in the last few months, and it’s currently down to 2014 levels. We intend to keep an eye out to see if the company is able to make a turnaround.
Economic Data
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