Unum Capital: Market Research Note - 29 October 2019

Unum Capital: Market Research Note - 29 October 2019

Trading on the local exchange kicked off the week on a positive note with the All Share Index gaining 1.2% or 660 points by Monday’s close. The big story of the day and leading the way higher being Petrochemical giant Sasol which provide the market with it’s results for the year ended 30 June 2019 where it reported a 5% rise in annual profit while shelving its final dividend as the firm sought to strengthen its balance sheet in light of a challenging trading environment. For the period, Headline Earnings Per Share came in at R30.62, a rise of 12% while Core HEPS rose 5% to R38.13. The group also reported gearing at 56.3% – above the range 44% to 49% guidance. It was also announced that Co-CEO’s would be stepping down from their current roles with the individuals reaching an amicable agreement with the board. These developments saw the share rise by 11.77% to close at R298.74.By the close of equities trading, the Rand stood at R14.54 versus the US Dollar, 18.70 versus the Pound and 16.12 versus the Euro. In the bond market, South Africa’s 10 Year Yield stood at 8.33% by the 17.10pm while the US 10 Year Yield rose to 1.84% by the close of the US trading session. This morning the Rand stands at 14.56 versus the US Dollar.
JSE Top 40 Index (Spot) – Key Technical Levels
– Rebound off 48740 on 25/10
– Rejected at 497000 on 28/10
– Overhead/downward trend line resistance at 50057
– Support at 48250/48300
An image
European Shares Up on Brexit Extension, Trade Optimism: European stock markets closed in the green on Monday, after a no-deal Brexit scenario vanished as the European Union accepted UK’s request for a third Brexit delay and progress in the US-China trade talks overshadowed Europe’s largest lender HSBC report of an 18% drop in Q3 pre-tax profits. The European Council President Donald Tusk announced on Twitter that EU27 has agreed that it will accept the Brexit flextension until January 31st 2020, meaning the UK will now be able to leave the EU at any time before January 31st. On the trade front, the US trade representative said the US and China were close to finalise parts of phase one trade deal. – TradingEconomics.com
US Stocks Rise, S&P Jumps to New High: Wall Street closed in the green to kick off the week with the S&P booking a new record, as earnings season continued and investors brace for a Fed meeting later in the week with easing expectations. On the trade front, optimism was enhanced on Friday after US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke to Chinese Vice Premier Liu He on Friday and made progress on completing an agreement. On the corporate side, AT&T shares rose after the telecom giant beat estimates and revealed an upbeat growth plan. Also, Spotify shares surged after the company posted solid earnings and announced that it will focus on creating podcast originals. The Dow Jones climbed 133 points or 0.5%. The S&P 500 jumped 17 points or 0.6%. The Nasdaq gained 83 points or 1%. – TradingEconomics.com

Volume as a % of 10-day average (Top)

An image

Volume as a % of 10-day average (Bottom)

An image

An image

Ethereum: Pending Channel Break, 40-week MA starting to stabilize

MTN: Price at risk of break of short term incline support. Prior support currently as resistance. Imperfect “Head and Shoulder” formation in play. A break of incline opens up sub-87.

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

Leave a Reply

Your email address will not be published. Required fields are marked *