Capio Capital Market Overview and Trade Ideas Asian markets are trading lower this morning after data showed that Chinese economic growth slowed in the fourth quarter last year. Chinese GDP rose 7.7% in 2013 the same as 2012.The Nikkei was down 0.59% at the time of writing. Technology stocks led the losses as Nintendo forecast a surprise full year loss pushing the stock down 13%. The ASX was down 0.4% with basic materials the only sector in the green as Gold mining stocks outperformed. In other Asian markets this morning Hong Kong, China and Singapore are down while Indonesia and South Korea are up. European markets finished in the green. Banking stocks were among the top performers for the week, on the back of the relaxation of the leverage ratio that banks must own as a proportion of their lending. The FTSE gained 0.2% supported by stronger than expected retail sales. Mining stocks continued to outperform, Glencore Xstrata rose over 3%. The DAX advanced 0.2%, steel maker Thyssenkrupp gained more than 2%. The CAC gained 0.19%,Total advanced just under a percent after being upgraded by Citigroup to a buy from Neutral. A mixed trading day saw the Dow rise 0.3% while the S&P dropped 0.4%. The lackluster day was brought on by earnings that disappointed and mixed data on the economy. Intel lost 2.6% its revenue forecast raised questions around the companies ability to grow while General Electric dropped 2% as margins did not meet forecasts for its manufacturing units. Other moves include American Express, VISA, and Morgan Stanley they gained 3.6%, 4.7% and 4.4% respectively while Capital One fell over 5% after missing analysts expectations. Electronic Arts Inc. posted the biggest gain on the S&P up 12% after being rated a Buy. The local bourse was flat with the all share down 0.11%. Mining stocks performed well with Anglogold and African Rainbow up 4% and 3% respectively. Kumba Iron Ore was up 3.5%, they made an announcement that 2013 full year profit climbed as much as 30% on the back of the weaker rand and the increase in export iron-ore prices. Retailers continued to fall with Shoprite dropping 4% after announcing that their food sales in December slowed more than expected. Mr Price was down for the fourth consecutive day closing down 4.8%. Financials and Industrials were also weak, MMI holdings, Sanlam, Netcare and Mediclinic were all substantially lower. Value traded was R10.4bn and the rand was at R10.86 to the dollar. Trade Ideas 1) Short: NPN near R1160, Tencent is down 1.32% in Hong Kong. The strengthening rand should support the move lower . Short term target price of R1120, stoploss at R1170.
Posted on: Mon, 20 Jan 2014 06:50:09 +0000
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