Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Today’s market is a far more colourful one, as we see an unusual, simultaneous growth in oil and precious metals. The former is in large part due to a new round of trade route disruptions in the Middle East, as the Houtis once again threaten to block the southern entrance to the Red Sea. There’s also movement in both directions, in a variety of sectors and markets, as geopolitics, important earnings and key economic data come together to create a no doubt interesting day at the market, and overall, we expect the rise in gold, PGMs (Platinum Group Metals), and Oil to help push the JSE up today.
Tencent (700)
Hong Kong is down by around 1.5% today, following trade restrictions on A.I. tech between the U.S. and China. Companies like Alibaba (BABA) and Baidu(BIDU) have seen similar drops, while Tencent is down by around 6.6% today. This is strange, as there have been no headlines or catalysts to explain such a sharp drop compared to other Chinese tech giants. This is highly likely to cause a bad day for Naspers (NPN) and Prosus (PRX), and we expect to see a minimum drop of 2%.
Software
Yesterday, we saw the continuation of the inverse correlation between software and semiconductors, as wins in the semis coincided with drops in software again. Adobe (ADBE) and Workday (WDAY) were downgraded to underweight by Morgan Stanley, which could have soured the sentiment on the sector, though individually, they performed relatively well, all things considered. As for today, ServiceNow’s (NOW) earnings should be closely watched, as its performance could go either way and will likely play a pivotal role in the sector’s direction in the near future.
From left to right: iShares Expanded Tech-Software Sector ETF, Adobe (ADBE), and ServiceNow (NOW).
Local Stocks
Goldminers
Gold sees growth for the fourth day in a row, and with the overnight push. As a result, we speculate that goldminers such as AngloGold (ANG), Harmony (HAR), and Sibanye-Stillwater (SSW) will have a decent day today.
From left to right: Gold, AngloGold Ashanti (ANG), and Harmony Gold (HAR).
Aspen Pharmacare (APN)
Aspen’s report yesterday seemed more positive than negative. But word of supply chain constraints seems to have been enough to cause a 7.3% drop, bringing it to a previous swing-low at R144. We see R142.5 as the level to look out for, as going below it could cause a drop to R140 or lower.
Earnings, Ex-Dividends & Economic Data
Today’s quite stacked on three fronts, and we recommend watching South Africa’s CPI figures closely, as they are likely to impact tomorrow’s interest rate decision.
After-Market Earnings
ServiceNow (NOW)
ServiceNow is an American software company whose earnings could determine whether the software sector drops or goes up in the near future.
Tesla (TSLA)
Tesla is an American EV (electric vehicle) and clean energy company, and one of the so-called ‘Magnificent 7’.
Alphabet (GOOGL)
Alphabet, colloquially known as Google, is a diverse tech company, known primarily for its search engine and YouTube. But the company also deals with A.I., software, cloud storage and more.
Texas Instruments (TXN)
Texas Instruments is a multinational Semiconductor manufacturer, based in the U.S.
International Business Machines (IBM)
IBM is a U.S. multinational tech and tech research company, operating in a variety of fields in the broader tech sector.
Ex-Dividends
The following stocks are set to go Ex-div today.
| Stock | Price | Dividend | Ex-Dividend Price | Change |
| TSG | R 7.80 | R 0.30 | R 7.50 | -3.85% |
| ISA | R 2.00 | R 0.09 | R 1.91 | -4.45% |
| LEW | R 93.00 | R 5.60 | R 87.40 | -6.02% |
| PMR | R 185.00 | R 1.82 | R 183.18 | -0.98% |
| CVW | R 9.54 | R 0.56 | R 8.98 | -5.87% |
Economic Data
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