Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Today’s market opens with risk-on sentiment, with a stronger Rand, green across most of the commodity space, and weakness in oil. Interestingly, this is despite the unchanged status in the Strait of Hormuz, following a U.S. announcement regarding a peace deal, which was firmly denied by Iran. We also see strong interest in Hong Kong, with Tencent (700), Baidu (BIDU), and Alibaba (BABA) all having a good day, which, in Tencent’s case, should translate into a good day for Naspers (NPN) and Prosus (PRX).
Coal
With much of the world’s oil supply unavailable due to the wars in Ukraine and the Middle East, coal as an energy source is becoming increasingly viable once again. We saw Japan switch to coal last month as natural gas prices shot through the roof, and coal power plants are being eyed in the U.S. to power the emerging data centres. We see similar stories in Europe and Asia, making it increasingly likely for thermal coal to make a comeback the longer oil is off the menu.
Local Stocks
Telkom (TKG)
Telkom came out with its Q1 earnings today, with decent numbers to show. While the revenue was modest, the expansion and earnings were good, with improved profitability, dividend and cash flow to boot. With the two upgrades from last month taken into account, Telkom is placed firmly in our watchlist.
Diversified Miners
With copper going up today, diversified miners like Glencore (GLN) and AngloAmerican (AGL) should have a good day, with the latter standing to benefit additionally from the green start in platinum.
From left to right: copper, Glencore plc (GLN), and AngloAmerican plc (AGL).
Earnings & Economic Data
After-Market Earnings
Palantir Technologies (PLTR)
Palantir is an American software company with close ties to the government and federal agencies.
Economic Data
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