Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Yesterday was a mostly quiet day, with little in terms of new news or geopolitical tensions. We saw the upwards momentum continue in the U.S., with the S&P 500 nearly reaching our weekly level of resistance before dipping slightly. The commodity market is mostly in the green, with the notable exception of oil, which is dropping towards $70 again. We expect a quiet session today, with the gold and platinum groups being the name of the game as they receive flows from Naspers (NPN) and Prosus (PRX).
Tencent (700)
Tencent has dropped into the HK$460 range, making it increasingly likely it will close the gap to the HK$450-440 range before bouncing back and forming an inverted head-and-shoulders. We expect Naspers (NPN) and Prosus (PRX) to move in similar directions, and until the trend line is broken, we recommend selling on every move higher.
From left to right: Tencent (700), Naspers (NPN), and Prosus (PRX).
Local Stocks
Kumba Iron Ore (KIO)
Kumba was upgraded to neutral by J.P. Morgan, with a target price of R314. With it trading near swing lows of June 2025, it might be worth looking into. However, Kumba can be risky, with wide spreads and inconsistent volumes, so trade carefully.
Telkom (TKG)
Telkom had a great day yesterday, following the upgrade from Absa. We believe it still has some room to grow. The telcos seem to be performing well in general, so we recommend keeping an eye on the sector as a whole.
Earnings & Economic Data
Pre-Market Earnings
Delta Air Lines (DAL)
Delta is an international airline based in the U.S., with close to a century of operation.
Economic Data
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