Unum Market Commentary: JSE Falls Financials See Selling Pressur
On Tuesday the JSE came under pressure as it caught up with a softer global sentiment driven by traders expecting economic data, USD-China trade negotiations as well as political maneuverings out of Washington. For the day, the All Share Index was lower by 0.49% while the Top 40 declined by 0.64%. Leading the declining were financials, with Standard Bank and Nedbank which were lower by 3.99% and 3.14% respectively while Bidvest (-3.76%) also added to the losses. In the winning lane, Sasol was boosted by a rising oil price, adding 3.87% for the session while Kumba Iron Ore attracted buying interest, adding 3.88% for the session. In Europe, stock were mostly higher with the FTSE 100 adding 0.62% on the day. US Stocks were mixed, with the Dow Jones, S&P 500 lower by 0.26% and 0.13% while the Nasdaq was higher by 0.18%. This morning Asian equities are higher with the Hang Seng leading the way with a 1.6% gain.
JSE Major Sectors
Resources 10 -0.05%
Industrial 25 +0.31%
Financial 15 +0.34%
Two ideas (by Lester Davids) that had mixed results recently were a short/sell on the DAX and a Buy/Long on the FTSE100. Here's how that played out:
#1. DAX Futures
- Stop-loss breached
#2. FTSE 100 Futures
While consolidating, the price slipped below the stop-loss level before moving in the anticipated direction.
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Platinum's Pause - Technical View by Lester Davids
Platinum has had a solid recovery from the lows of $756 just over one month ago. The price is now trading in line with the downward trend line going back to the year-to-date peak of $1033 as well as near the horizontal resistance that has been in place over the last 13 weeks. While the price appears to be bottoming over the medium term, the short term dircetion may see a pause as a short term recovery in the US Dollar curbs further upside.
Platinum Daily Chart
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In currencies, the South African Rand trades as follows:
USDZAR +0.10% to 14.36
GBPZAR +0.09% to 18.93
EURZAR +0.08% to 16.90
Gold trades at $1205
Platinum at $828
Brent Crude Oil at $81.24
International Markets
This morning, Asian equities are as follows:
Nikkei 225 (+0.24%)
Hang Seng (-0.03%)
Shanghai Composite (-0.12%)
Latam Markets closed as follows:
Merval 25 (+2.68%)
Bovespa (+0.83%)
INMEX (+0.37%)
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Company News
Standard Bank Group - Withdrawal of Cautionary
Shareholders of Standard Bank Group (“Shareholders”) are referred to the cautionary announcement dated 30 August 2018, and the subsequent update announcement dated 6 September 2018, in terms of which Shareholders were advised that the Central Bank of Nigeria (“CBN”) had imposed a penalty on Stanbic IBTC Bank PLC (“Stanbic IBTC Bank” or “the Bank”) relating to the remittance of foreign exchange on behalf of MTN Nigeria Communications Limited (“MTN Nigeria”) and requested that the funds remitted by the Bank on behalf of MTN Nigeria be refunded to the CBN.
Shareholders are hereby notified that the CBN has written to advise the Bank that it will examine new submissions and documentations made by the Bank, and where justified, it will review its earlier decision on the penalty it imposed on the Bank. The Bank had communicated that it believed that it had acted properly in an agency capacity.
Furthermore, the CBN has confirmed that the Bank will not be debited for USD2.632 billion which the CBN had previously suggested that the Bank should also be prepared to refund.
The Bank will continue its engagements with the CBN.
As the financial impact of the penalties levied by the CBN on the Bank has been published and sufficient clarity has now been provided by the CBN regarding the Bank’s relationship to the refund sought by the CBN, caution is no longer required to be exercised by Shareholders when dealing in their Standard Bank Group securities.
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Aus miners:
BHP Billiton (+1.17%)
Rio Tinto (+1.13%)
S32 (+0.51%)
FANGs
Facebook (-0.30%)
Amazon (+2.08%)
Netflix (-0.05%)
Google (+1.21%)
FTSE Miners:
Anglo American plc (+0.96%)
BHP Billiton plc (+1.47%)
Glencore plc (+3.48%)
Alibaba Holdings (+0.67%)
Tencent Holdings (+0.79%)
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The Unum Capital Trading Desk
Please feel free to contact the Unum trading desk : 011 384 29 29
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