J200 - TOP40 cup and handleJSE:J200
Cup and handle made on J200 break of neck like will open some 4500 points downside.
Target around 40000/40500
J200 trade ideas
JSE TOP 40 week ahead 2018/11/05TOP 40 holding above its breakout of the October balance. Holding above 47350 is short term bullish and could give a shot for higher price discovery. Below 46500 and we could revisit the October lows.
J200 Market Commentary: Equities Mixed As Tech Weighs
It was a mixed start to the week across global equity markets, with some major indices finding strong support from oversold levels (Europe) when viewed on a short term basis while US markets rose in the first hour of trade only to fail to hold it's intraday highs as sellers regained control and offload more stock at year-to-date lows. This time, fears around additional US-China tariffs coupled with a decline in US technology sector shares weigh heavily on markets. While the selling pressure was evident throughout the session, stocks managed to finish off their lows. In the final 15-minutes of the US trading session, the price action was as follows: S&P500 jumping by 27 points, the Dow Jones Industrial Average higher by 295 points while the Nasdaq Composite was pushed higher by 122 points as speculators shopped for end-of-day bargains.
On the local market, the JSE All Share Index closed higher by 1.01%, while the Top 40 Index added 1.13% however well off the their intraday highs. This strong performance comes despite Naspers trading lower to sideways for most of the day and taking a leg lower as the US market opened. On the day, winners included Absa (+4.79%), Mr Price (+4.67%), Firstrand (+4.33%) and Nedbank (4.10%) while Naspers (-3.63%), Anglogold Ashanti (-3.86%) and Growthpoint Properties (-0.87%) weighed on the Top 40.
On the currency front, the Rand strengthened throughout the day, reaching it's best level of R14.41 by 11:20am before weakening to 14:53 by the start of the US trading session. The Euro, which has been under pressure since the middle of October, held above it's 4-day support level of 1.1376 while the British Pound traded near seven-week lows as concerns around Brexit continued to linger.
In Europe, stocks closed higher, helped along by a rise in automakers as China indicated that it may be considering a 50% auto tax cut. For the session, the DAX closed higher by 1.20% while the FTSE 100 and CAC40 added 1.25 and 0.44% respectively.
This morning in Asia, stocks trade in mixed territory, largely shrugging off the sell-off on Wall Street. The Nikkei is higher by 1.44%, the Shanghai Composite by 1.04% while the Hang Seng has shed 0.68%. The Rand, with 15-min to go before the opening bell, trades at 14.67 versus the US Dollar.
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Company News
MTN GROUP LIMITED - Quarterly update for the period ended 30 September 2018 and renewal of cautionary announcement (extract):
Salient features
- Group subscribers increased quarter-on-quarter (QoQ) by 2,5 million to 225,4 million
- Active data subscribers increased QoQ by 5,0 million* to 74,2 million
- Active MTN Mobile Money customers increased QoQ by 1,7 million to 25,8 million
- Group service revenue increased year-on-year (YoY) by 10,0%
- Group data revenue increased YoY by 23,9%
- MTN South Africa service revenue increased YoY by 3,0% with an EBITDA margin of 34,5%
- MTN Nigeria service revenue increased YoY by 17,4% with an EBITDA margin of 43,2%
- MTN Ghana service revenue increased YoY by 22,9% with an EBITDA margin of 37,6%
- MTN Irancell service revenue increased YoY by 14,1% with an EBITDA margin of 35,3%
MTN Group president and CEO, Rob Shuter comments:
"MTN recorded an improved operational performance in many markets in the third quarter. Group service revenue grew by 10,0% year on year, ahead of our medium-term target of upper-single-digit growth, supported by continued strong growth in voice and data revenue. These results were delivered in challenging operating and currency conditions.
Group outgoing voice revenue increased by 5,2% and data revenue increased by 23,9%. Higher digital revenue was led by robust growth in MTN Mobile Money.
The group benefited from the particularly strong performance of operations in Nigeria and Ghana, while some operations in our West and Central Africa (WECA) region remained under pressure. MTN South Africa continues to execute on operational improvements.
We made good progress on our key growth drivers of data and digital services, adding 5,0 million active data
subscribers and 1,7 million new MoMo subscribers in the quarter.
We successfully completed the listing of MTN Ghana. MTN Nigeria's plans to list have been challenged by the recent Central Bank of Nigeria and Attorney General of the Federal Republic of Nigeria matters, however, MTN remains committed to the listing in Nigeria and work continues in this regard. In the quarter, the group engaged extensively with authorities in Nigeria to deal with the matters they raised.
Across our markets, we continued to invest in our networks, and now have the leading network net promoter score in 10 of our markets. Reported capital expenditure to the end of the September 2018 was R16,4 billion, a group capex intensity of 16,9%.
We continued to optimise our balance sheet structure and reduced our gross US dollar debt by approximately US$400 million. This was supported by proceeds from the sale of MTN Cyprus of US$303 million, the settlement of a loan from our Ugandan Tower Company of US$34 million as well as the proceeds from the MTN Ghana listing of US$202 million received after the quarter's end. We also concluded the refinancing of our US$1,25 billion revolving credit facilities that are maturing in 2019 with a new five-year revolving credit facility of US$1,25 billion at an improved margin, and with an option to increase to US$1,5 billion.
We continue to focus on operational improvements across our business and continue to develop our digital businesses."
JSE vs Chinese index, interesting relationshipTony Bell, Vunani Fund Managers, mad the following comment on Ryk van Niekert's Moneyweb interview:
""Naspers, of course, skews our indices quite a bit, Naspers up and everyone is happy, Naspers down and the market is down, and I think that’s the pattern we are starting to see which is very much a mimicking of what’s happening in China. If you have a look at our market in relation to the weakness in the Chinese renminbi, those factors have become more correlated. So we, to a certain extent, have lost a little bit of that historic correlation we had with the S&P because the S&P has itself become so differentiated between the top performers and the rest of the market, and we are now more correlated with emerging markets and, ironically, the path of the renminbi versus the dollar."
so I thought I would have a look at the JSE and Chinese markets both in USD and guess what ..... he's right!
$J200JSE:J200
Not big fan of projection of the future but as I can see it.
$J200 will probably bounce from this level maybe go to back test 48000 or there about. That was where triple top broke neck line.
From there next leg will probably start and should target 40000/41000 where lots of buying happened over last few years.
This is just for your info I will not trade this idea.
J200 Market Commentary: Global Equities Down But Off The Lows
Tuesday saw another down day across global markets as the sellers remained in control for much of the session on the JSE, across Asia as well in Europe as contagion and investor nervousness kept fingers on the selling button.
On the Top 40 index, only 3 out of 40 shares closed in the green, this being British American Tobacco, Anglogold Ashanti and Anglo American Platinum while the downside was lead by Aspen Pharmacare, Kumba Iron Ore (which provided a muted production and sales report), Naspers and Sasol which was lower as oil prices declined sharply following an announcement by Saudi Arabia to make up for any supply disruptions with higher output. Also adding pressure on the downside were financial services shares such as banks which was down by 2.6%.
In Europe, stocks ended in the red with the DAX, FTSE100 and CAC40 closing lower by 2.17%, 1.24% and 1.69% respectively while the broader EuroStoxx 50 shed 1.50%, lead lower by Bayer which declined by 9.52%.
In the commodities space, Gold experienced some late-afternoon selling as US Futures rose, leaving the safe-haven with a lack of bids, while Brent Crude Oil this morning is pairing it's losses following a nearly 5% decline for the previous session.
This morning in Asia, stocks are on the rise as a "recovery" on Wall Street helps to lift sentiment. Tencent is higher by 1.22%. Today, the major focus locally will be the Medium Term Budget Policy Statement (MTPBS), presented by Finance Minister Tito Mboweni in Parliament.
JSE Major Sectors
Resources 10 -1.66%
Industrial 25 -2.42%
Financial 15 -2.22%
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Company News
Kumba Iron Ore Limited production and sales report for the third quarter ended 30 September 2018
Kumba Iron Ore Limited production and sales report for the third quarter ended 30 September 2018
Kumba continued to improve on safety and delivered a solid operating performance, while maintaining production and sales volumes in line with guidance. Throughout this report, production and sales volumes referred to are 100% of Sishen Iron Ore Company Proprietary Limited (“SIOC”), and attributable to shareholders of Kumba as well as the non-controlling interests in SIOC.
Overview: • Safe production ensured Kumba remained fatality free and continued to improve on multiple safety metrics. • Production volumes reduced by 9% to 10.5Mt as planned, to offset elevated stock levels arising from rail constraints in H1 2018. • Export sales decreased by 10% to 9.7Mt as a result of scheduled refurbishment by Transnet.
Total production volumes decreased by 9% to 10.5Mt (Q3 2017: 11.5Mt) as planned, to offset elevated stock levels at Sishen and Kolomela arising from Transnet rail constraints in H1 2018. Production volumes were also impacted by the slight decrease in processing plant yields as Kumba focused on producing high quality products to maximise the value of tonnes railed to port and benefit from the strong demand for high-grade ore.
Production at Sishen and Kolomela reduced by 10% to 7Mt (Q3 2017: 7.8Mt) and 6% to 3.5Mt (Q3 2017: 3.7Mt), respectively. Waste stripping at Sishen increased by 7% to 45Mt (Q3 2017: 42Mt) and remained flat at Kolomela (Q3 2017: 16Mt), as we continued our progress towards benchmark efficiency.
Export sales decreased by 10% to 9.7Mt (Q3 2017: 11.4Mt) due to the scheduled refurbishment of the ship loaders at Saldanha which resulted in single loading of vessels during the quarter. Total finished stock increased to 6.6Mt from 6.2Mt at 30 June 2018.
Guidance Kumba continued to work closely with Transnet to improve logistical performance and good progress has been made during the quarter. As a result, the 2018 full year guidance announced in Kumba's 2018 interim results on 24 July 2018 has been maintained as follows:
Total production of 43-44Mt
– Sishen 29-30Mt
– Kolomela 14Mt
– Waste
– Sishen 170-180Mt
– Kolomela 55-57Mt
– Total sales of 42-44Mt
J200 Market Commentary: Global Equities Mixed On China Data and
Global equities ended in mixed territory on Friday as traders and investors digested fresh data out of China, the prospect of further rate hikes in the United States while assessing the potential for geopolitical tensions between the US and Saudi Arabia.
Volatility was subdued during the North American trading session as the Dow Jones Industrial Average closed higher by 0.26%, driven by a jump in Proctor and Gamble (+8.80%) which reported a stronger-than-expected increase in sales, buoyed by selected beauty products. Also leading the pack was American Express, which added 3.78% as the company exceeded analyst expectations for the third quarter. The S&P500 on the other hand finished slightly lower (-0.04%) while the NASDAQ Composite failed to shine on the day, losing 0.48%.
In Europe, stocks ended in mixed territory. For the day, the DAX closed lower by 0.31%, the FTSE100 higher by 0.32% while the CAC40 closed in the red by 0.63%. Although markets had traded lower in the morning session, comments from the EU's Moscovici lifted sentiment as he indicated that he wanted to reduce tensions with the Italian government over their budget plans.
On the JSE, the All Share Index closed slightly lower (-0.08%) as the market saw a somewhat even balance between buyers and sellers. The Top 40 closed lower by a similar level (-0.09%), as shares such as Kumba Iron Ore (-2.13%) and Bid Corp (-1.88%) gave index sellers a slight edge.
This morning in Asia, stocks kick off the new trading week on a strong note as the Shanghai Composite is higher by over 4% on the back of stimulus hopes, the Hang Seng by 2% while the Nikkei is up nearly a half of a percent. US and European Futures also trade in positive territory.
In terms of currencies, the Rand is back above the 14.30 level versus the US Dollar, while Gold trades near it's highest level in seven weeks.
JSE Major Sectors
Resources 10 -0.29%
Industrial 25 -0.13%
Financial 15 -0.17%
For the week ahead the economic calendar is filled with various local and international releases. On Wednesday at 9am, we have South African Consumer Confidence while the ECB Interest Rate Decision looms at 1:45pm on Thursday. In addition, the SA Medium Term Budget Policy Statement is due on Wednesday. You may view the economic calendar by clicking on this link: www.unum.co.za
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Company News
Oceana Group Limited - Updated Trading Statement
Shareholders are referred to the trading statement released on the Stock Exchange News Service (“SENS”) of the JSE Limited (“JSE”) on 12 September 2018 and are advised that basic earnings per share (“EPS”) for the year ended 30 September 2018 compared to the year ended 30 September 2017 (“comparative period”) are now expected to increase between 78% and 88%, to between 714.3 cents per share and 754.4 cents per share (30 September 2017: 401.3 cents per share).
Basic headline earnings per share (“HEPS”) for the year ended 30 September 2018 are now expected to increase between 80% and 90%, to between 705.4 cents per share and 744.6 cents per share (30 September 2017: 391.9 cents per share) compared to the comparative period.
The financial information on which this trading statement is based has not been reviewed and/or reported on by the Company`s auditors.
The Company expects its results for the year ended 30 September 2018 to be released on the SENS on or about Thursday, 15 November 2018.
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USDZAR - Technical Analysis
On Wednesday last week we saw the price has rebound off the neckline of a head and shoulder formation, maintaining the upward trend line that has been in place since 27 March 2018. Both the 50 and 100-day moving averages continue to show an upward bias while the medium term 20-day moving average is in neutral territory. The head and shoulder is negated above the highest point of the right shoulder, currently R15.06 while a break and close below the upward trend line would signal the potential for a medium term change in trend.
JSE Wyckoff Wave AnalysisIn this analysis I have considered a Wyckoff Wave (WWave) for the JSE and its associated volume.The Stock Market Institute (SMI) describes an propriety indicator the "SMI Wyckoff Wave" for US Stocks. This is my attempt to make a Wyckoff Wave for the Johannesburg Stock Exchange (JSE).
The Code for this JSE Wyckoff Wave and associated Volume for this wave is linked below.
The Wave presents a normalized price for the 10 selected stocks (An Index for the 10 stocks). The theory is to select stocks that are widely held, market leaders, actively traded and participate in important market moves. This is only my attempt to select 10 stocks and a different selection can be made.
I am not certain how SMI determine their weightings but what I have done it to equalize the Rand value of the stock volume so that moves are of equal magnitude. The then provides a view of the overall condition of the market and volume flow in the market. I have used the September 2018 price to normalize the stock price for the 10 selected stocks based. The stocks and weightings can be changed periodically depending on the performance and leadership.
The stocks and their weightings are:
"JSE:BTI"/0.79
"JSE:SHP"/2.87
"JSE:NPN"/0.18
"JSE:AGL"/1.96
"JSE:SOL"/1.0
"JSE:CFR"/4.42
"JSE:MND"/1.40
"JSE:MTN"/7.63
"JSE:SLM"/7.29
"JSE:FSR"/8.25
Analyzing the wave I make the following conclusions:
- The WWave has been trading in a upward channel since the beginning of 2016.
- The WWave found resistance with a Buying Climax (BC) after a throw over of the overbought line.
- After the BC the WWave has been very week with strong volume on the down moves (especially at Futures Closeouts) and low volume on rallies.
- The market has been in a range but only finding support below the Automatic Rally (AR).
- However, the volumes have declined with each subsequent down wave back to support and with the September Closeout a rally and not decline was seen. Although, the rally was week with effort but little response.
- The WWave is now at the oversold line of the upward stride.
We need to watch to see if there is going to be a change of character with increased volume on rallies or the support line of the range and channel is broken. At this key junction next week will be key to see if demand or supply triumphs.
Calculating a negative open on the J200Calculating the J200 to open in the red this morning -183 points.
US markets closed lower on Friday.
Asian markets trading lower this morning.
Tencent down -0.99% currently.
ZAR slightly weaker this morning (more downside to come)
S&P futures flat.
UK futures pointing lower.
Traders should look to profit on arbitrage between the ALSI open and the J200 open call.
Unum Morning callCalculating a negative open on the J200 -215 points.
ZAR weaker this morning.
US markets ended lower yesterday.
Asian markets trading lower this morning.
FTSE futures lower this morning.
Traders should look to profit form arbitrage opportunities between the the ALSI open and the J200.
J200JSE:J200
If anyone doubted head and shoulders now everything is clear. Neck line broken target somewhere in around that box lower
JSE Sector Comparison End of SeptemberThe JSE Top 40 has been ranging but finding some support at the breakout level of the previous trading range. Looking at the comparison of the three main sectors in the JSE since April we can evaluate recent relative strength. The Resources sector has been strong and even looking at resent lows on 12 September it has remained the strongest of the sectors. Financials have strengthened some since end of June and is also remaining above the September 12 lows. Industrials on the other hand had been tracking the Top 40 performance but since 12 September has been very week falling strongly even as the other sectors hold above the low. If the Top 40 is to break support Industrials would be the sector to look at to go short but if we see a bounce Financials and Resources would be the go to sectors.
Calculating a negative open on the J200Calculating the J200 to open down -198 points.
Tencent down -1.8%
US & FTSE futures pointing lower
US markets ended lower yesterday
Asian markets trading mostly lower this morning
Traders should look to profit arbitrage between the ALSI open and the Unum J200 open call
Unum Market Commentary: Equities Lower As Fed Hikes; Dollar Gain
On Wednesday all eyes were on the US Federal Reserve as market participants awaited the commentary following the near-certain 25 basis point hike which saw the lending rate increase from 2.00% to 2.25%. General commentary from the committee highlighted the most known factors including: (1) the health of the US economy (2) low unemployment (3) rising wages and (4) low and stable inflation. Also stated by Chairman Powell was that a gradual return to policy normalization will help to sustain the strong economy for the long-run benefit of all Americans. The initial reaction saw the US Dollar weaken, which saw a print of 1.1797 versus the Euro which was followed by strength that saw a print below 1.1750 post the US market close. Versus the South African Rand, the greenback tested a low of 14.08, settling to 14.15 by 6:30am this morning. In the equities space, US stocks finished lower, with the Dow Jones, S&P500 and Nasdaq 100 losing 0.40%, 0.33% and 0.21% respectively while the Russell 2000, the index which possibly better reflects the domestic US economy, took the biggest hit, losing 1.02% for the session. This morning Asian stocks are tracking Wall Street's losses with the Nikkei 225 down by 0.37%, the Hang Seng lower by 0.37% while the Shanghai Composite is down by 0.39%.
GDP Projected Changes as per the FOMC
JSE Major Sectors
Resources 10 -1.89%
Industrial 25 -0.17%
Financial 15 -0.01%
Below is a great chart from Statista which highlighted where tourists have been spending the most amount of money. At the top of the list was the US which received 75m inbound arrivals and where inbound expenditure was around $210bn.
The Walt Disney Company - A Beneficiary of Tourism - View by Lester Davids
One share that may be a beneficiary of increased tourist travel to and spending in the United States is the Walt Disney Company with their world-class theme-park entertainment which has a long and profitable operating history. The share has been a laggard over the last few years as it's sports network, ESPN, has lost subscribers. We will however in future see the company launch it's own streaming service which could benefit the share. The earnings multiple (PE) is undemanding and technically (as per the weekly chart) we are seeing a breakout. Will this be a change in long term trend?
Disney Weekly Chart
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In currencies, the South African Rand trades as follows:
USDZAR +0.15% to 14.15
GBPZAR +0.01% to 18.61
EURZAR +0.23% to 16.63
Gold trades at $1202
Platinum at $830
Brent Crude Oil at $81.56
International Markets
This morning, Asian equities are as follows:
Nikkei 225 (-0.37%)
Hang Seng (-0.37%)
Shanghai Composite (-0.39%)
Latam Markets closed as follows:
Merval 25 (-0.32%)
Bovespa (+0.03%)
INMEX (-0.11%)
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Company News
Capitec Bank Holdings Limited - Unaudited Financial Results For The 6 Months Ended 31 August 2018
Salient Features
Unaudited financial results for the 6 months ended 31 August 2018
+20% to 2 128 cents Headline earnings per share
+20% to R2.461 billion Headline earnings
+20% to 630 cents Interim dividend per share
27% Return on equity
10.5m Active clients
25% Transaction volume growth
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Aus miners:
BHP Billiton (+0.20%)
Rio Tinto (-0.67%)
S32 (+0.00%)
FANGs
Facebook (+1.24%)
Amazon (+0.02%)
Netflix (+2.29%)
Google (+0.01%)
FTSE Miners:
Anglo American plc (-1.57%)
BHP Billiton plc (-2.00%)
Glencore plc (-1.02%)
Alibaba Holdings (+0.70%)
Tencent Holdings (+2.12%)
Share Link: bit.ly/JoinUnum
________________________________________
The Unum Capital Trading Desk
Feel free to contact the Unum trading desk for any trading related queries: 011 384 2929
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%)
Share Link: bit.ly/JoinUnum
________________________________________
The Unum Capital Trading Desk
Please feel free to contact the Unum trading desk : 011 384 29 29
J200JSE:J200
Top40 making handle (bearish flag) after it made nice big cup.
Chart currently does not look good at all and long trades on #ALSI #TOP40 should be very limited.
Calculating a negative open on the J200 -249 points.Based on my calculations I derive a negative open on the J200 -249 points.
The UK market finished weaker yesterday.
US markets ended mostly lower yesterday.
Tencent trading down -2% currently.
S&P and FTSE futures pointing lower.
Traders should look to profit from arbitrage opportunities between the ALSI open and the J200 open based on our caculations.
Unum Market Commentary: Global Equities Mixed As Traders Assess
Global equities got off to a weaker start this week as traders assessed the impact of further tariffs as well as a slew of economic data and potentially market-moving events for the week ahead. This morning we saw the release of the Bank of Japan Monetary Policy Meeting Minutes while tomorrow the US Federal Reserve's Interest Rate Announcement is made known where traders largely expect the committee to raise the lending rate by 25bps. On Thursday, Euro-Area business confidence figures is expected to be released while US Personal Spending is due on Friday at 8:30am New York time. In Europe, equities were weaker, with the DAX, FTSE100 and CAC40 all lower by 0.64%, 0.42% and 0.33% respectively while major indices in the US were mostly lower between 0.35% and 0.70% on average while the Nasdaq managed to get back into the green with a 0.08% gain. This morning in Asia, markets are flat to down, with the Hang Seng being the biggest drag (-1.62%).
JSE Major Sectors
Resources 10 +0.30%
Industrial 25 +0.99%
Financial 15 +2.54%
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US Dollar Futures (DXY) - Technical View by Lester Davids
The price has found support 93.42, a level that has held over the past four months. The medium term setup is bearish, with a head and shoulder top developing while the near term price action signals higher levels as the right shoulder of the technical formation develops.
US Dollar Index Futures (Daily Chart)
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In currencies, the South African Rand trades as follows:
USDZAR -0.03% to 14.37
GBPZAR -0.12% to 18.83
EURZAR -0.07% to 16.87
Gold trades at $1202
Platinum at $832
Brent Crude Oil at $80.69
International Markets
This morning, Asian equities are as follows:
Nikkei 225 (+0.07%)
Hang Seng (-1.62%)
Shanghai Composite (-0.83%)
Latam Markets closed as follows:
Merval 25 (-3.39%)
Bovespa (-1.84%)
INMEX (-0.14%)
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Company News
ArcelorMittal South Africa Limited - Appointment Of Chief Financial Officer And Executive Director
In compliance with paragraph 3.59(a) of the Listings Requirements of the JSE Limited, shareholders are advised that after following an appropriate recruitment process.
The Board of Directors (Board) has approved the appointment of Mr Avinash Desmond Maharaj (Desmond) as Chief Financial Officer (CFO) and Executive Director of the Board with effect from 1 October 2018.
Mr Maharaj has a Master’s degree in Finance and is a qualified Chartered Accountant registered with the South African Institute of Chartered Accountants. He has a 22-year career with 17 years at a senior executive level in Finance and General Management level.
Mr Gerhard van Zyl, who acted as Acting CFO pending the appointment of a permanent CFO, will accordingly step down as Acting CFO.
The Board congratulates Mr Maharaj on his appointment and looks forward to his contribution.
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Amazon Inc - The Most Important Stock In The World? - Technical View by Lester Davids
The contribution of technology behemoth Amazon Inc to US stock market performance cannot be understated. From being the second company (behind Apple) to reach 1 trillion US Dollars in market value and being a feature across feature across many active and passive funds, the share has become nearly a proxy for US stock market resilience. Today I'm having a brief look at the short term technical position for the share and how it may influence near term performance for US Stocks.
The price has performed strongly year-to-date, appreciating by 64%. Recently the share has breached it's upward trend line that has been in place since October 2017 and has also breached support on it's RSI technical indicator which is starting to turn lower and trending toward the short term bearish zone.
When Amazon is overlayed versus the S&P 500 we see the a strong correlation in performance over the short term.
Bottom Line: With the upward trend line having been breached and the RSI pointing toward the bearish "zone", Amazon under-performance may filter through to the broader S&P 500 index.
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Aus miners:
BHP Billiton (+0.86%)
Rio Tinto (+0.97%)
S32 (+1.56%)
FANGs
Facebook (+1.52%)
Amazon (+1.01%)
Netflix (+2.33%)
Google (+0.63%)
FTSE Miners:
Anglo American plc (-1.40%)
BHP Billiton plc (-0.41%)
Glencore plc (-2.02%)
Alibaba Holdings (+0.89%)
Tencent Holdings (-1.97%)
Share Link: bit.ly/JoinUnum
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The Unum Capital Trading Desk
Please feel free to contact the Unum Trading desk for any trading related queries :
Tel: 011 384 2929
J200 (SA Top40) J200
Long South African Top40 Index.
The analysis was done on a 4hour chart. Using Pivot Points as Targets.
First Target: 51200
Second Target: 52000
Look out for retrace in the region between 51900 - 53000.
Unum Market Commentary: JSE Stable As Rand Gains On Inflation Da
Wednesday saw the release of a key piece of SA economic data which helped the Rand gain versus the major currencies. Inflation for the month of August (YoY) came in at 4.9% versus a prior reading of 5.1% and consensus forecast of 5.2%. This saw the Rand gain by approximately 27 cents versus the US Dollar, closing the session just above the R14.60 level from a Tuesday session close of R14.90. A weaker US Dollar also saw metals strong on the day which in turn helped Anglo American plc add 4.11% for the session, while Mr Price and Sanlam added 3.86% and 3.52% respectively. On the downside, Aspen continued to be under significant selling pressure, shedding nearly 8%. In Europe, markets remained buoyant with the DAX, FTSE and CAC40 adding 0.50%, 0.42% and 0.56% respectively. Overnight US stocks closed as follows: Dow Jones (+0.61%), S&P500 (+0.13%), Nasdaq (-0.08%). This morning in Asia, equities are flat to down.
REMINDER: Today at 3:00pm the South African Reserve Bank will announce it's interest rate decision.
JSE Major Sectors
Resources 10 +1.27%
Industrial 25 -0.99%
Financial 15 +1.41%
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Unum Capital Economic Calendar: www.unum.co.za
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In currencies, the South African Rand trades as follows:
USDZAR -0.23% to 14.66
GBPZAR +0.16% to 19.28
EURZAR +0.15% to 17.12
Gold trades at $1210
Platinum at $825
Brent Crude Oil at $79.64
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 (+3.15%)
Bovespa (-0.19%)
INMEX (-0.20%)
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Company News
Life Healthcare Group Holdings Limited - Disposal of interest in Max Healthcare Institute Limited and withdrawal of cautionary announcement
Further to the cautionary announcement released on the Stock Exchange News Service on 27 August 2018, shareholders are advised that the Company through its wholly owned subsidiary, Life Healthcare International Proprietary Limited, has accepted an offer from the global investment firm Kohlberg Kravis Roberts & Co. LP. for and on behalf of funds and/or investment vehicles managed by it together with its affiliates ("the Purchaser") to acquire its 49.7% stake in Max Healthcare Institute Limited ("Max Healthcare") ("the Transaction"). The Purchaser may complete the transaction through its portfolio company, Radiant Life Care Private Limited.
2. THE TRANSACTION
Rationale
Exiting its joint shareholding investment in Max Healthcare will further enable Life Healthcare to focus on its core operations in South Africa, UK, Poland and Western Europe. The Company will initially use the net disposal proceeds to settle debt as well as to invest in growth opportunities in its core markets.
Terms of the Transaction
Subject to the terms and conditions to be mutually agreed in a share purchase agreement, the Purchaser will acquire 266,997,937 equity shares held by Life Healthcare International Proprietary Limited, which represents 49.7% of the share capital of Max Healthcare, at Rupees 80 per share for approximately R4.3 billion before costs and the impact of exchange rate fluctuations (the R4.3 billion is an indicative amount based on the rate of exchange as at 19 September 2018, R1 = Rupees4.93). The final amount will be determined based on the rate of exchange when the transaction is finalised. The transaction is currently expected to be finalised and become effective before the end of December 2018.
The business of Max Healthcare
Max Healthcare is a leading hospital group in India. The business operates state of the art hospitals in Delhi-NCR, Punjab and Uttarakhand. Life Healthcare acquired an initial stake of 26% in Max Healthcare in 2012 and subsequently increased its stake to 46.25% in 2014. Following the acquisition of half of the International Finance Corporation’s interest in 2017, Life Healthcare increased its stake in Max Healthcare to 49.7%.
The consideration
The total consideration for Life Healthcare’s stake in Max Healthcare will be settled in cash. The Company will initially utilise the net proceeds (less estimated costs and taxes) from the disposal to settle debt as well as to invest in growth opportunities in the Company’s core markets.
Financial effects of the Transaction
Max Healthcare is equity accounted for in the published unaudited interim Group results. The investment’s book value as at 31 March 2018 amounted to R2.893 billion (30 September 2017: R2.960 billion). The net loss after tax for the period ended 31 March 2018 was R67 million (30 September 2017: R27 million).
3. CONDITIONS
The implementation of the Transaction is subject to the fulfillment of the following:
- the negotiation and entry into a mutually agreed share purchase agreement to be approved by the Boards of the Company and the Purchaser;
- the satisfaction of the conditions to be set out in the share purchase agreement including necessary regulatory and other approvals required in India being obtained;
- the waiver by Max India of its pre-emptive rights under the existing shareholders’ agreement; and
- finalisation of Warranty & Indemnity Insurance on terms acceptable to the Purchaser.
4. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Given that the material terms of the Transaction are contained in this announcement; caution is no longer required to be exercised by shareholders when dealing in their Life Healthcare shares.
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Aus miners:
BHP Billiton (+1.42%)
Rio Tinto (+3.13%)
S32 (-1.64%)
FANGs
Facebook (+1.72%)
Amazon (-0.75%)
Netflix (-0.19%)
Google (+0.61%)
FTSE Miners:
Anglo American plc (+5.05%)
BHP Billiton plc (+3.17%)
Glencore plc (+3.53%)
Alibaba Holdings (+3.82%)
Tencent Holdings (+0.50%)
Share Link: bit.ly/JoinUnum
________________________________________
The Unum Capital Trading Desk
Please contact the Unum Trading desk for any trading related queries
Tel: 011 384 2929
