Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
We start the day with strength in U.S. bonds and oil after the U.S. walked back the oil sanctions waiver on 21st June. The rise in U.S. bonds is a sign that the market is once again concerned about further escalations and subsequent interest hikes, which explains the pressure we see in equities and the metal spaces. Interestingly, we saw headlines of the People’s Bank of China (PBOC) buying gold, which could explain why it’s holding relatively well today.
Chinese Tech
We see U.S. software, semiconductors, and memory stocks continue to drop as the rotation into China continues today. Hang Seng is up 3.3%, and the likes of Tencent (700) and Alibaba (BABA) are up by 4-10%. If the rotation continues, we could see further upside in China, with Alibaba and Tencent being able to test $120-130, and even further if rotations are directed into A.I. as well as Chinese technology.
Left: Tencent (700), right: Alibaba (BABA)
Local Stocks
Sasol (SOL)
Sasol should benefit from the increased oil prices, but it’s lagging behind other international oil companies in terms of growth. If you were able to buy into it last night, expect the real volume and movement to come in at around 15:30, when the U.S. market opens.
Naspers (NPN) & Prosus (PRX)
With golds and PGMs (Platinum Group Metals) taking hits and the banks being rotated out of, we expect Naspers and Prosus to see most of the gains in our market. Tencent’s (700) growth should also help further boost both companies’ performances.
Left: Naspers (NPN), right: Prosus (PRX).
Earnings, Ex-Dividends & Economic Data
Today’s a somewhat quiet day, with only the FOMC meeting minutes scheduled at 20:00. This is simply a summary of the current state of affairs by the Fed, so don’t expect any rate decisions.
Pre-Market Earnings
Helen Of Troy (HELE)
Helen of Troy is the owner and developer of a number of houseware, health and beauty brands, such as Braun, Vicks and Drybar.
After-Market Earnings
Levi Strauss & Co (LEVI)
Levi’s is an American apparel brand, famous for its jeans and denim products.
Ex-Dividends
The following stocks are set to go Ex-div today.
| Stocks | Price | Dividend | Ex-Div Price | Change |
| BTI | R 1,011 | R 13.31 | R 997.69 | -1.32% |
| NTC | R 18.51 | R 0.44 | R 18.07 | -2.38% |
| SSS | R 17.00 | R 0.57 | R 16.43 | -3.35% |
| VKE | R 25.05 | R 0.83 | R 24.22 | -3.31% |
Economic Data
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