Unum Capital: Rand Above 15, Trading Levels + IPOs on Sale

Unum Capital: Rand Above 15, Trading Levels + IPOs on Sale

On Friday, South African and global equities closed near the lows of the week, failing to find any buying support amid a weakening Rand, the continuation of global tensions between the US and China, uncertainty over Brexit as well as inquiry into the potential impeachment of US President Donald Trump. For the week, the All Share Index closed lower by 2.12% or 1197 points to settle at 55209. The Top 40 faired similarly to close lower by 2.33% or 1174 points with some of the major large cap movers on the downside being as follows: Investec (-12.10%), Assore (-9.85%), Sasol (-6.55%), Discovery (-6.11%) and Tiger Brands (-6.02%). On the upside, commodity shares held the fort with performances as follows: Sibanye (+19.19%), Northam Platinum (+9.61%), Goldfields (+8.07%), Impala Platinum (+6.66%) and Capital Counties (+5.43%).
European stock markets closed in the green on Friday, amid hopes that US  and China will resolve their trade dispute at next month’s trade talks  and expectations of looser monetary policy in the UK. Sterling weakened below $1.23 after BoE policymaker Saunders said that “probably  will be appropriate to maintain an expansionary monetary policy stance  and perhaps to loosen further”. The FTSE 100 rose 75 points, or 1% to  7,426; the DAX 30 gained 92 points, or 0.8% to 12,381; the CAC 40 added  20 points, or 0.4% to 5,641; the IBEX 35 climbed 54 points, or 0.6% to  9,184 and the FTSE MIB went up 70 points, or 0.3% to 22,017. – TradingEconomics.com
Wall Street closed in the red on Friday, as the White House is  considering limiting investment in China, erasing early session gains after China and the US scheduled trade talks in Washington on October 10-11. Meanwhile, US consumer spending slowed more than expected in  August, booking the weakest reading since February. On the corporate side, shares of chipmaker Micron plunged after the company reported  guidance short of analyst expectations, dragging other names in the  semiconductor industry. The Dow Jones retreated 0.4%. The S&P 500  dropped 0.5%. The Nasdaq fell 1.1%. – TradingEconomics.com
   

1-Year Performance in US Dollars: 

All Country World Equity ETF (-1.16%)
iShares MSCI South Africa ETF (-10.72%)

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Headlines
South Africa’s Petrol Pump Price To Increase By 18 Cents Per Litre From 02 October 2019 – Government
South Africa’s Wholesale Diesel Price To Increase By 25 Cents Per Litre From 02 October – Government
U.S. Treasury Says No Plans to Block Chinese Listings ‘at This Time’ – A U.S. Treasury official said there are no current plans to stop  Chinese companies from listing on U.S. exchanges, a day after a report  that the Trump administration is discussing ways to limit U.S.  investors’ portfolio flows into China. “The administration is not contemplating blocking Chinese  companies from listing shares on U.S. stock exchanges at this time,”  Treasury spokeswoman Monica Crowley said in an emailed statement on  Saturday. – Bloomberg
Australia Trims Outlook for Commodities Peak as Prices Weaken: Australia’s earnings from mining and energy exports are projected to peak by the middle of next-year, though weaker raw materials prices and waning demand have trimmed the forecast high, according to the Department of Industry, Innovation and Science. – Bloomberg
China Vows to Continue Opening Financial Markets: China said it would continue to open up its financial markets and encourage foreign investment amid reports the Trump administration is considering restrictions on fund flows to China.“We will take further steps to promote high quality two-way financial opening, encourage foreign financial institutions and funds to invest in the domestic financial market, to boost the competitiveness and dynamism of the domestic financial system,” according to a summary from the eighth meeting of the Financial Stability and Development Committee. – Bloomberg

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Key Technical Levels (Please Click On The Headline To Access The Analysis)
Prosus
Richemont
BHP
Anglo American plc
Firstrand
Vodacom

Please chat to the Unum Capital Trading Desk to take advantage of any trading opportunities.
All the best,
Lester Davids
Unum Trading Desk Analyst
e-mail: clientservices@unum.co.za
Tel: 011 384 2923

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