Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Today’s opening market is very red, with weakness in the South African market and the commodity sector, while the dollar and U.S. bonds maintain their strength. This is in large part due to concerns of an impending interest rate hike, which remain prevalent, especially as Kevin Warsh and other authorities continue to signal a desire to maintain the dollar’s strength. The U.S. market, in the meantime, is moving sideways, as the semiconductors and, to a lesser extent, software see most of the growth, which, in conjunction with yesterday’s volumes, gives us the impression that we’ll have a quiet session today.
Local Stocks
Thungela Resources (TGA)
Thungela has been trading below pre-war levels and has been dropping, and the market’s reaction to yesterday’s quarterly update has dashed any hopes of a return to the R100 mark in the immediate future. With the earnings coming up in August, we speculate that Thungela will have to play with Dividends to gain the market’s interest. For now, we recommend adding it to your wait-and-see list in case it consolidates at some point.
Equites Property Fund (EQU)
Equites was upgraded to buy by Investec, with a new target price of R19.4, which is a 9% increase from its closing price at around R17.6.
Ex-Dividends & Economic Data
We’d like to remind you once again that the Hong Kong and Canadian markets are closed today due to a public holiday, and subsequently, certain stocks like Tencent (700) will not be available or move.
Ex-Dividends
The following stocks are set to go Ex-div today.
| Stocks | Price | Dividend | Ex-Div Price | Change |
| CLS | R 227.47 | R 2.58 | R 224.89 | -1.13% |
| ANI | R 5.00 | R 0.30 | R 4.70 | -6.00% |
| TBS | R 296.10 | R 4.30 | R 291.80 | -1.45% |
| MRP | R 179.78 | R 5.93 | R 173.85 | -3.30% |
| PHP | R 20.95 | R 0.40 | R 20.55 | -1.92% |
| NVS | R 6.60 | R 0.55 | R 6.05 | -8.33% |
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.
